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Enron saga under spotlight

The fallout of the Enron saga ? probably the biggest corporate scandal of modern times ? will be one of the key topics at major insurance seminar this week.

The Sedgwick, Detert, Moran & Arnold LLP Fourth Annual Hot Topics Seminar for the Bermuda Insurance Market starts on October 4 at the Bermuda Underwater Exploration Institute.

?The Enron saga continues to roll on. There will be increasing media interest as next year?s trial of the securities class action brought by Enron shareholders approaches,? Sedgwick partner Mark Chudleigh said.

?Susan Sullivan, of Sedgwick Los Angeles, will review the many developments in this area,? he added.

Mr. Chudleigh is the Seminar Coordinator and a partner in Sedgwick?s London office as well as principal of Sedgwick?s affiliated Bermuda law firm, Sedgwick Chudleigh.

Sedgwick lawyers from offices in New York, London, Chicago, Dallas and Los Angeles will address a range of topics of current interest and concern to the insurance community and eight speakers this year.

The seminar?s moderator, Richard (Dick) Geddes from Sedgwick Chicago, will be speaking at the seminar for the first time.

Mr. Geddes, who practises in the areas of insurance and reinsurance counselling, litigation and arbitration, has been working with Bermuda insurers since the 1970s.

He will be speaking on the subject of ?The Bermuda Form: 20 Years On?.

The Bermuda Form is an innovative insurance product developed in Bermuda in the mid-1980s and the success of the Bermuda Market can be attributed in large part to its development.

Mr. Geddes has been working with the Bermuda Form since its creation and is a leading practitioner in this area.

?I, for one, am very excited that I will be able to hear him speak on this subject that he knows so much about,? Mr. Chudleigh said.

Mark Tillman, of Sedgwick Dallas, will be discussing property coverage and in particular business interruption claims.

The adjustment of the 2005 storm losses (Hurricanes Katrina, Wilma and Rita) is now reaching an advanced stage and issues over business interruption claims are at the core of discussions between insurers and commercial insureds.

Cumulatively, the sums at stake run into the billions of dollars and some of the more challenging claims could take several years to resolve.

Eric Scheiner, of Sedgwick Chicago, has a practice devoted almost exclusively to serving Bermuda insurers and is extremely knowledgeable about the Bermuda Market.

Mr. Scheiner will be speaking about the recent stock options backdating scandal that is engulfing corporate America.

Numerous SEC investigations, class actions and derivative actions have been instigated and he will discuss the potential implications for insurers.

Mr. Chudleigh said another worrying trend for insurers is the rise of employment practices liability (EPL) claims against the US investment banking industry.

?These include sexual harassment and discrimination claims, the frat house environment of many investment and brokerage firms, age and racial discrimination claims,? Mr. Chudleigh said.

?Also several class action lawsuits recently filed against investment banks alleging that the employer failed to investigate allegations of discrimination and/or retaliated against employees for bringing such complaints in the first place.?

Adeola Adele of Sedgwick New York will address developments in this area and the implications for EPL insurers.

James Pilgrim-Morris, of Sedgwick London, will review important insurance and reinsurance coverage decisions in the UK over the past 12 months.

These decisions will impact Bermuda insurers and reinsurers whose policies are subject to English or Bermuda law.

There have been several important rulings this year, including those concerning an insured?s duty to disclose allegations of dishonesty made against it, whether a reinsured owes a duty to its reinsurer to act prudently and carefully when underwriting risks and two important decisions addressing the liability of insurance brokers.

Other presenters include Andrew Houghton of Sedgwick New York, who will discuss aviation liability and in particular an insurer?s duty to defend its insured, and Peter Clancy of Sedgwick Chicago, who will talk about the volatile area of managed care litigation and emerging exposures for healthcare providers and their insurers.

The number of seminar registrants to date suggests that the conference will have Sedgwick?s biggest turn out ever.

There are still places left but those wishing to attend must register in advance by contacting Stephen Kimmerling of Sedgwick New York on 1 212 422 0202 or by email to stephen.kimmerlingsdma.com.