PhRMA's New Rules on DTC Advertising
In response to continued scrutiny from the public and from legislators concerned over the effects of direct-to-consumer (DTC) advertising, the Board of Directors of the Pharmaceutical Research and Manufacturers Association (PhRMA) voted this past July 29 to institute what it calls a set of "Guiding Principles" that will extend and augment the current FDA rules for DTC advertisement. These principles will go into effect in January 2006.
New PhRMA Policy: Not Everyone Satisfied
When the Pharmaceutical and Research Manufacturers of America (PhRMA) announced it was instituting a new policy on direct-to-consumer advertising, PhRMA President and CEO Billy Tauzin stated, "With these principles, we commit ourselves to improving the inherent educational value of advertisements. Patients need accurate and timely information and should be encouraged to discuss diseases and treatment options with their physicians. These principles will help us reach that goal."
The Hazards of an Untimely Disclaimer of Coverage: Application of the Estoppel Doctrine to Bar Reliance upon Coverage Defenses
Liability insurance policies typically require the insured to notify the insurance company "as soon as practicable" or "as soon as possible" of a suit or a potentially covered claim. Compliance with these "notice conditions" is often held to be a condition precedent to coverage under the policy, such that if the insured unreasonably delays notifying its carrier of a suit or claim, the insurer may be relieved of its duties under the policy. The purpose of these provisions is to protect the insurer by giving it adequate time to investigate the claim, control the litigation, posture the case for settlement, set reserves, and prevent fraud. <i>Sybron Transition Corp. v. Sec. Ins. Co. of Hartford</i>, 107 F.3d 1250, 1257 (7th Cir. 1997). But there is a cautionary note for insurers because the duty to provide prompt notice is not limited to the insured. Under limited circumstances, an insurer may be estopped from relying upon a coverage defense, such as late notice or an applicable exclusion from coverage, if it unreasonably delays denying coverage under the policy because, just like the insurer, the insured can potentially suffer prejudice from untimely communications. <i>Incorporated Village of Pleasantville v. Calvert Ins. Co.</i>, 612 N.Y.S.2d 441 (N.Y. App. Div. 1994); <i>Central Mut. Ins. Co. v. Kammerling</i>, 571 N.E.2d 806 (Ill. App. Ct. 1991). This article discusses the elements of estoppel barring coverage defenses, application of the defense in special circumstances involving settlement of the underlying claim, and what an insurer should do if it is uncertain as to whether coverage actually exists under the policy.
Wisconsin State Compensation Caps Held Unconstitutional
Doctors in Wisconsin and in other states are not the only ones worried about the Wisconsin Supreme Court's recent decision invalidating caps on noneconomic damages in medical malpractice cases in that state. Patient advocates, insurers and other business group representatives are also very concerned that the strides they've made in reigning in malpractice insurance premiums are in jeopardy.
Verdicts
Recent rulings you need to know.
In the Aftermath of Katrina
In the aftermath of Hurricane Katrina, people from all walks of life and from all corners of the world want to reach out to do what they can to help the victims of this unfathomable disaster. Schoolchildren are raising pennies to help those in need while relief organizations send supplies from all regions of the country. On the ground where this disaster struck in Louisiana and Mississippi, however, thousands of caring individuals have been providing emergency first aid and medical care to their neighbors in need. When licensed health care workers respond to the urgent needs of the hurricane's victims, what kinds of liability might they be opening themselves up to?
Merck Faces New Jersey Jury After Big Texas Loss
After Merck & Co.'s devastating loss in Texas earlier this month in the first Vioxx case to go to a jury, the nation's eyes now turn to Atlantic City, where New Jersey's first case was set for trial on Sept. 12.
Divorce and the Assignment of Income Doctrine
One who is entitled to receive income, including interest or compensation for services, but assigns the income to another before it becomes due, will be taxed on it just as though he or she had actually received it and then paid it over to the assignee. This concept is known as the assignment of income doctrine.
