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Final Rule on Phase-In of Shutdown Benefits

On May 6, 2014, the Pension Benefit Guaranty Corporation (the ?Ç£PBGC?Ç¥) published a final rule that amended its benefit payment regulation to implement a provision of the Pension Protection Act of 2006 that changed the phase-in period for the PBGC?ÇÖs guarantee of benefits that are contingent upon the occurrence of an ?Ç£unpredictable contingent event,?Ç¥ such as a plant shutdown. The final rule clarifies that the phase-in of the guarantee starts no earlier than the date of the unpredictable contingent event. The final rule is effective for benefits that become payable as a result of an event that occurs after July 26, 2005. A copy of the final rule can be found?áhere.

Preserving Insurance Coverage For Contractual Liability

Texas operators, contractors and service companies need to carefully consider how a recent trend in Texas law affects the availability of insurance coverage?Çöfor themselves and their counterparties?Çöfor contractual liability. Most general liability policies, which insure claims for bodily injury and property damage, exclude coverage for liability assumed under a contract, unless the liability either exists in the absence of the contract or was assumed in a defined ?Ç£insured contract.?Ç¥?á For many years, this ?Ç£contractual liability?Ç¥ exclusion was understood to apply when an insured assumes a third-party?ÇÖs liability in an indemnity agreement.?á In 2010, the Texas Supreme Court held, under a unique set of facts, that the contractual liability exclusion could apply outside the context of a third-party indemnity agreement.?á More recently, in January 2014, the Texas Supreme Court spoke again.?á In Ewing Construction Company v. Amerisure Insurance Company, the Court held that an insured does not ?Ç£assume liability?Ç¥ as required… Continue Reading

May 2014