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Mealey's Insurance - Employee Benefit Plan Administrators Accused Of Failing To Obtain Reinsurance
Posted on 21 Oct 2019 by Mealeys

SANTA ANA, Calif. - Trucking companies sued the administrators of their self-insured employee benefit plans on Oct. 18 in a California federal court, alleging that the administrators negligently failed to obtain reinsurance coverage for the plans (A&I... Read More

Mealey's Insurance - Insolvent Insurer Receiver's $2M Consent Judgment Is Not Covered Under E&O Policy
Posted on 21 Oct 2019 by Mealeys

LITTLE ROCK, Ark. - A $2 million consent judgment sought by an insolvent insurer's receiver is not covered under an errors and omissions insurance policy because a CEO is not a "covered person" under the E&O policy and the consent judgment... Read More

Mealey's Insurance - Judge Allows Amendment To Relator's State Law Insurance Fraud Claims
Posted on 21 Oct 2019 by Mealeys

SAN FRANCISCO - A federal judge in California on Oct. 18 allowed a relator in a False Claims Act (FCA) suit brought against his former employer to amend his allegations that the company's CEO violated the California Insurance Fraud Prevention Act... Read More

Mealey's Insurance - Judgment Properly Entered For Disability Insurer, 9th Circuit Panel Says
Posted on 21 Oct 2019 by Mealeys

SAN DIEGO - A district court did not err in entering judgment in favor of a disability insurer because the disability claimant failed to prove that she was unable to perform the duties of her own occupation while she was still employed by her former employer... Read More

Mealey's Insurance - Panel Reverses Summary Judgment Ruling In Insurer's Favor In False Statements Case
Posted on 21 Oct 2019 by Mealeys

WEST PALM BEACH, Fla. - A Florida appeals panel on Oct. 16 held that a lower court erred in granting summary judgment in favor of an insurer, finding that the insurer failed to "conclusively negate" the appellants' affirmative defenses to... Read More

Mealey's Insurance - Maryland Panel Affirms Allocation Method Applied In Lead Paint Dispute
Posted on 18 Oct 2019 by Mealeys

ANNAPOLIS, Md. - The Maryland Court of Special Appeals on Oct. 15 affirmed a trial court's finding that a pro rata time-on-the-risk method of allocation applies in a lead paint poisoning coverage suit, but determined that the trial court erred in... Read More

Mealey's Insurance - Social Security Disability Beneficiaries' Request For Attorney Fees Denied By Judge
Posted on 17 Oct 2019 by Mealeys

PIKEVILLE, Ky. - Claims for attorney fees under the Equal Access to Justice Act (EAJA) brought by individuals whose requests for Social Security disability benefits were initially obtained through an attorney's fraudulent scheme with doctors and an... Read More

Mealey's Insurance - Evidence Demonstrated Man's Intent To Submit False Prescriptions, Judge Says
Posted on 17 Oct 2019 by Mealeys

NEW HAVEN, Conn. - A federal judge in Connecticut on Oct. 16 denied a man's motion for acquittal following his conviction on two counts of health care fraud, ruling that the evidence presented during a February trial sufficiently supported the jury's... Read More

Mealey's Insurance - Altered Prescription Was Properly Admitted, Pennsylvania Panel Rules
Posted on 16 Oct 2019 by Mealeys

HARRISBURG, Pa. - A woman's convictions for insurance fraud and securing execution of documents by deception as well as her five-year sentence of probation was affirmed Oct. 15 by a Pennsylvania appeals panel that held that the commonwealth presented... Read More

Mealey's Insurance - Insured Intended To Commit Acts That Caused Injuries; No Coverage, Panel Affirms
Posted on 16 Oct 2019 by Mealeys

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Oct. 15 held that an insured's "admissions to committing aggravated assault, battery, and false imprisonment" combined with "other stipulated and pleaded facts" establish... Read More

Mealey's Insurance - Reinsurers: Discovery Issue On Allocation Of Settlement Has Already Been Decided
Posted on 15 Oct 2019 by Mealeys

BOSTON - A group of reinsurers argue in an Oct. 10 opposition brief that a Massachusetts federal court should deny an insurer's motion to compel production of documents and interrogatory responses relating to their allocation and billing of their... Read More

Mealey's Insurance - High Court Refuses To Review Dismissal Of Bad Faith Suit Against Auto Insurer
Posted on 15 Oct 2019 by Mealeys

WASHINGTON, D.C. - The U.S. Supreme Court on Oct. 15 denied a petition for writ of certiorari filed by an insured who argued that his breach of contract and bad faith complaint should be reinstated because a trial court erred in dismissing his complaint... Read More

Mealey's Insurance - Forum Selection Clause Warrants Dismissal Of Global Insurer, 3rd Circuit Affirms
Posted on 15 Oct 2019 by Mealeys

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Oct. 11 affirmed a lower federal court's finding that a global insurance policy's forum selection clause required that an insurer's suit seeking equitable contribution from another... Read More

Mealey's Insurance - 3rd Circuit: Subcontractor Knowingly Waived Claims Against Contractor, Sureties
Posted on 14 Oct 2019 by Mealeys

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Oct. 11 affirmed dismissal of a subcontractor's claims against a contractor and its sureties in a dispute over a delayed construction project because the subcontractor knowingly and voluntarily... Read More

Mealey's Insurance - Panel: Insured Is Entitled To Fees From Florida Insurance Guaranty Association
Posted on 14 Oct 2019 by Mealeys

LAKELAND, Fla. - A Florida appeals panel on Oct. 11 held that an insured is entitled to attorney fees and costs pursuant to Section 57.041, Florida Statutes (2012), in sinkhole litigation because Florida Insurance Guaranty Association's (FIGA) ultimate... Read More

  • Blog Post: Court Vacates Ruling On Document Request Against Insolvent Insurer

    HARRISBURG, Pa. - The Pennsylvania Commonwealth Court on March 7 vacated a determination by the Office of Open Records (OOR) denying a request of certain documents under the Right-to-Know Law (RTKL) from the Pennsylvania Department of Insurance and an insolvent insurer related to reinsurance offset guidelines...
  • Blog Post: Insurer's Receiver Filed Timely Claim Under Policy, Judge Concludes

    TALLAHASSEE, Fla. - The Florida Department of Financial Services (FDFS) as receiver for an insolvent insurance company timely filed a claim under a directors and officers liability insurance policy, a Florida federal judge determined March 7 (Florida Department of Financial Services as receiver for American...
  • Blog Post: Judgment Awarded To Insurers On Equitable Contribution Claim

    FRESNO, Calif. - Two insurance companies had no duty to defend an insured for an underlying construction defect action based on their respective "your product" and business risk exclusions, a California federal judge ruled March 6, granting summary judgment to the insurers on an equitable contribution...
  • Blog Post: Pollution Exclusion Bars Coverage For Bat Waste, Wis. High Court Majority Says

    MADISON, Wis. - An insurer has no duty to provide coverage for damages caused by the accumulation of bat guano because the policy's pollution exclusion clearly bars coverage for waste and a reasonable person would interpret bat guano as waste, the majority of the Wisconsin Supreme Court said March...
  • Blog Post: Panel: $4M Consent Judgment Unenforceable Against Professional Liability Insurer

    NEW ORLEANS - The no-action and consent-to-settle clauses of a professional liability insurance policy are valid and bar enforcement of a $4 million consent judgment against an insurer, the Fifth Circuit U.S Court of Appeals held March 6, affirming a lower court's declaratory judgment ruling in favor...
  • Blog Post: Judge: Insurer Has No Duty To Defend Suits Alleging $2.6M Kickback Scheme

    SCRANTON, Pa. - An insurer has no duty to defend or indemnify its insureds against underlying lawsuits alleging that the insureds participated in a $2.6 million kickback scheme with two Pennsylvania judges, a Pennsylvania federal judge ruled March 7, granting the insurer's motion for summary judgment...
  • Blog Post: Judge: Insurance Policy Excludes Coverage For Chinese Drywall Claims

    BATON ROUGE, La. - Homeowners' allegations of damages from Chinese drywall are not covered under their insurance policy because the drywall is defective and the drywall's off-gassing is both corrosive and a pollutant, a Louisiana federal judge ruled March 9, finding that the policy's defective...
  • Blog Post: Plan Estopped From Denying Benefits Based On Misrepresentation, Judge Rules

    GREEN BAY, Wis. - A life insurance plan governed by the Employee Retirement Income Security Act is estopped from denying benefits because the employer's representative misrepresented that the insured did not need to apply for coverage upon his retirement; however, the insurer was entitled to summary...
  • Blog Post: Excess Policy's Exhaustion Requirement Satisfied, Virginia Federal Judge Rules

    ALEXANDRIA, Va. - A health and human services program provider insured's settlements with underlying insurers for less than the full limits of their professional liability insurance policies and its agreement to "fill in the gap" by absorbing the difference between what the insurers agreed...
  • Blog Post: Panel Affirms Negligence Suit Not Covered Under Professional Liability Policy

    PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on March 12 affirmed a lower court's ruling that an underlying negligence lawsuit against an insured is not covered under a real estate agent and broker professional liability insurance policy because the insured failed to comply with the...
  • Blog Post: Judge: Fact Issues Exist On Whether Damage From Hail Is Covered

    PHOENIX - An all-risk insurance policy provides coverage from damage by hail whether the damage is the sole or partial cause of the loss but does not provide coverage where hail is not responsible for the loss, an Arizona federal judge held March 12, denying motions for summary judgment filed by an insured...
  • Blog Post: Judge: Insured Breached Notice Provision Regarding Construction Defect Claims

    MOBILE, Ala. - An insured breached the notice provision of an insurance policy regarding construction defect claims, an Alabama federal judge ruled March 12, granting summary judgment to an insurer on a contribution claim filed by a subrogated insurer (Assurance Company of America v., individually and...
  • Blog Post: Federal Judge Dismisses Negligence Claim Against Insurance Broker

    COLUMBUS, Ohio - A federal judge in Ohio on March 12 dismissed negligence and declaratory judgment claims against an insurance broker but refused to dismiss an insured's breach of contract claim against the broker (Momentive Specialty Chemicals Inc., et al. v. Chartis Specialty Insurance Co., et...
  • Blog Post: Panel: Insolvent Insurance Policy Does Not Cover Medical Malpractice Claims

    HARTFORD, Conn. - An insolvent professional liability insurance policy did not cover certain medical malpractice claims brought against an insured under the doctrine of vicarious liability, a Connecticut appeals panel held March 13, reversing the entry of summary judgment against the Connecticut Insurance...
  • Blog Post: Panel: Unborn Child Was 'Resident' Of Household; No Coverage For Wrongful Death

    KANSAS CITY, Mo. - An unborn child resided with her mother in the household of the baby's father, a Missouri appeals panel ruled March 13, affirming a lower court's ruling that coverage for the baby's wrongful death is precluded by a homeowners insurance policy's "household resident...
  • Blog Post: Judge Stays Indemnity Action Against Insurers, Insurance Broker

    NEW YORK - A federal judge in New York on March 13 stayed a port authority's lawsuit seeking a determination of indemnity obligations from various insurance companies and an insurance broker pending the resolution of an underlying personal injury lawsuit regarding asbestos exposure (The Port Authority...
  • Blog Post: Insured Cannot Prove Indemnification Claim, Panel Concludes

    TRENTON, N.J. - Regarding an indemnification claim, an insured cannot establish a prima facie case of covered loss simply by demonstrating that class action claimants alleged potential third-party property damage; rather, it must show that the underlying settlement actually included payment for such...
  • Blog Post: Judge Refuses To Reconsider Order Granting Jury Trial On Claims Against Broker

    NASHVILLE, Tenn. - A Tennessee federal judge on March 13 denied an insurance broker's motion to reconsider his order permitting a jury trial on breach of contract and negligence claims against the broker in a lawsuit arising from flood damage (Wendy's of Bowling Green Inc. v. Marsh USA Inc.,...
  • Blog Post: Panel: Enhanced Coverage Does Not Apply Retroactively To Cover $3M Settlement

    SALEM, Ore. - An endorsement adding $2 million in umbrella coverage to a $1 million liquor liability policy did not retroactively fully cover a $3 million settlement arising from a fatal car accident, an Oregon appeals panel affirmed March 14 (Capitol Specialty Insurance Corporation v. Chan & Lui...
  • Blog Post: Panel Finds No Bad Faith Without Proof That Insurer Assumed A Duty To Defend

    SAN DIEGO - Although the insurers in an underlying lawsuit ultimately paid to settle a default judgment against one of the defendants, a panel in the Fourth District California Court of Appeal held that he did not provide the necessary "substantial evidence" to show that the insurers had assumed...
  • Blog Post: Magistrate Judge Grants Dismissal Of Statutory Bad Faith Claim As Time-Barred

    SCRANTON, Pa. - Because a plaintiff only stated a statutory bad faith claim and not a common law bad faith claim in her complaint, a Pennsylvania federal magistrate judge on March 14 found that the claim was barred under a two-year statute of limitations (Monica Cozzone, D.O. v. AXA Equitable Life Insurance...
  • Blog Post: Delay Relieved Insurer Of Its Duty To Defend, California Panel Affirms

    SAN DIEGO - An insured's two-year delay in providing a professional liability insurer with a copy of a 2005 complaint relieved the insurer of any duty to defend the insured, a California appeals panel affirmed March 16 (Novapro Risk Solutions L.P. v. TIG Insurance Company, No. D059066, Calif. App...
  • Blog Post: Questions Of Fact Exist As To When Insured Knew Of Loss, Indiana Panel Says

    INDIANAPOLIS - Because questions of fact exist regarding when an insured had knowledge of environmental contamination at his gas station, a trial court erred in granting summary judgment in favor of an insurer, the Indiana Court of Appeals said March 16 (Indiana Farm Bureau Insurance Co. et al., v. Harleysville...
  • Blog Post: Judge Says Faulty Work Claims Are Not Covered Under Insurance Policies

    PHILADELPHIA - Claims for faulty workmanship do not constitute an "occurrence" under commercial general liability insurance policies, a Pennsylvania federal judge ruled March 16, finding that insurers have no duty to defend or indemnify (Zurich American Insurance Co., et al. v. R.M. Shoemaker...
  • Blog Post: Panel: CGL Insurance Policy Does Not Cover Subcontractor's Work

    ATLANTA - A post-1986 standard form commercial general liability policy with products-completed operations hazard coverage does cover a claim made against an insured for damage to the part of a completed project performed by a subcontractor but not to any other project component caused by a subcontractor's...