LexisNexis® Legal Newsroom
Mealey's Insurance - Claimant No Longer Disabled Under Plan's Terms, Indiana Federal Judge Says

INDIANAPOLIS - The termination of a claimant's long-term disability benefits was not arbitrary and capricious because the claimant was not disabled from "any gainful occupation," an Indiana federal judge said March 17 (Jill A. Stafford v. Anthem Life Insurance Co., et al., No. 15-2032,...

Mealey's Insurance - Reinsurer: Insurer Did Not Tell Of Trial Witnesses Until After End Of Discovery

SYRACUSE, N.Y. - A reinsurer asked a federal court in New York on March 17 for permission to file a letter motion asking the court to disqualify certain trial witnesses that were not revealed until after the end of discovery or, in the alternative, allow the reinsurer to depose the witnesses (Utica Mutual...

Mealey's Insurance - Judge Finds Jurisdiction Lacking In Insolvent Insurer's Suit Over ACA Payments

ST. LOUIS - An insolvent insurer's suit against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims, a federal judge in Iowa said March 17 in finding that she lacked...

Mealey's Insurance - Lawsuit Fails To Trigger Professional Liability Coverage, 7th Circuit Affirms

CHICAGO - The Seventh Circuit U.S. Court of Appeals on March 21 affirmed a lower federal court's ruling that an underlying lawsuit against an insured does not assert a claim that plausibly falls under her professional liability insurance policy, rejecting an appeal by a homeowners insurer seeking...

Mealey's Insurance - 9th Circuit Affirms $6.1M Judgment In Favor Of Insured In Dispute With Excess Insurer

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on March 21 affirmed a lower federal court's $6,080,568 judgment in favor of an insured in a breach of contract and bad faith lawsuit against its excess general liability insurer arising from an underlying patent infringement dispute (Teleflex...

Mealey's Insurance - Issues Of Fact Exist On Cause Of Collapse And Insured's Knowledge, Federal Judge Says

PEORIA, Ill. - Because questions of fact exist regarding the cause of the collapse of a building's second floor and the insured's knowledge of the condition of the building, an Illinois federal judge on March 21 denied an insurer's motion for summary judgment (WAMFAM5 Inc. v. Nova Casualty...

Mealey's Insurance - Excess Insurer Had No Duty To Indemnify Construction Defect Suit, Judge Finds

DENVER - An excess insurer had no duty to indemnify two insureds for a construction defect case because the primary policy was not yet exhausted, a Colorado federal judge ruled March 20, dismissing a reimbursement lawsuit filed by two other insurers seeking monies for the defect case's settlement...

Mealey's Insurance - 9th Circuit Dismisses Appeal In Coverage Dispute Over Trademark Claims

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on March 21 dismissed an insured's appeal in an advertising injury coverage dispute after a lower federal court determined on remand that it lacked subject matter jurisdiction over the case (Vogue International, LLC, d.b.a. Vogue International...

Mealey's Insurance - Florida Panel Affirms Court's Refusal To Conduct New Appraisal In Wilma Suit

MIAMI - A Florida appeals panel on March 22 held that an insured's post-appraisal submission of increased costs in a Hurricane Wilma coverage dispute is not a legally sufficient basis to reopen the existing appraisal or conduct a new appraisal (Orlando Noa v. Florida Insurance Guaranty Association...

Mealey's Insurance - Maryland Federal Judge Says Temporary Restraining Order Is Not Warranted

BALTIMORE - A Maryland federal judge on March 22 denied an underlying plaintiff's motion for a temporary restraining order seeking to ban an insurer and its insured from reaching a settlement for an underlying judgment awarded for personal injuries in a lead paint exposure suit (CX Reinsurance Co...

Mealey's Insurance - Insurer Properly Considered Doctoral Program Requirements When Terminating Benefits

GRAND RAPIDS, Mich. - A disability insurer's reliance on a claimant's attendance requirements for a doctoral degree program was properly considered by the insurer when it terminated the claimant's long-term disability benefits on the basis that the claimant was not disabled from performing...

Mealey's Insurance - California Appeals Panel Affirms Insurer's Restitution Award In Fraud Suit

SAN DIEGO - An insurer is entitled to $37,000 in restitution from a man who pleaded guilty to misrepresenting to the company that nurses he sent to work at skilled-nursing facilities were computer programmers to obtain a lower workers' compensation policy premium, a California appeals panel ruled...

Mealey's Insurance - Judge Says Special Deposit Cannot Be Used To Pay Guarantor Expenses

CHICAGO - An Illinois judge on March 22 sustained an insurance guaranty association's objection, finding that an insolvent insurer's special deposit cannot be used to pay the guaranty association's general administrative expenses (People of the State of Illinois, ex rel. Andrew Boron, Director...

Mealey's Insurance - Judge: Subcontractors Owe Defense To Subrogated Insurer's Negligence Claim

BOSTON - Three subcontractors owe a defense to a general contractor against negligence and breach of the implied warranties of habitability and good workmanship claims brought by a subrogated insurer for water damage in a condominium building, a Massachusetts federal judge ruled March 22 (Philadelphia...

Mealey's Insurance - No Coverage Owed For Insured's Land, Relocation Damages, Federal Judge Rules

TUSCALOOSA, Ala. - An Alabama federal judge on March 21 held that federal flood insurer does not owe coverage for an insured's claim for land and relocation damages arising from a heavy rain that caused a local river to flood (Crawford Nixon v. Nationwide Mutual Insurance Co., No. 15-00186, N.D....

Mealey's Insurance - Liquidator Of Insolvent Insurers: Claims Against Reinsurer Are Sufficient

CHICAGO - The liquidator of a pair of insolvent insurers told a federal court in Illinois on March 22 that the claims she brings against a mortgage insurance reinsurer are sufficient to survive a motion to dismiss (People of the State of Illinois, ex rel., Acting Director of Insurance, Anne Melissa Dowling...

Mealey's Insurance - Panel: Architect Did Not Have 'Deemed Allowed' Claim That Constitutes Res Judicata

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on March 24 denied an architect's appeal seeking to reverse a ruling in favor of a home builder's insurer in a breach of contract dispute arising from an underlying $63,471,000 copyright infringement dispute, rejecting the architect's...

Mealey's Insurance - New York Law Applies In Environmental Dispute, Delaware High Court Says, Reversing

WILMINGTON, Del. - The Delaware Supreme Court on March 23 determined that the law of New York should be applied in a dispute over the allocation of environmental contamination claims because New York has the most significant relationship with the parties and applying the law of the state in which an...

Mealey's Insurance - Homeowner's Insurer Paid Full Amount Of Claims, Magistrate Judge Concludes

PHILADELPHIA - A homeowner's insurer paid the entire amount it owed to insureds for damage to their home because the insureds failed to offer expert reports to rebut the insurer's evidence that the unpaid portions were not covered, a Pennsylvania federal judge ruled March 22, granting summary...

Mealey's Insurance - Claimant Failed To Prove He Was Disabled Under Policy, 6th Circuit Panel Affirms

CINCINNATI - A disability insurer's decision to terminate a claimant's long-term disability benefits is supported by the medical evidence, the Sixth Circuit U.S. Court of Appeals said March 22, agreeing with a district court's finding that the claimant failed to show that his depression prevented...

Mealey's Insurance - Appeals Court: Grand Jury Proceedings, Evidence Supported Arson Fraud Verdict

CLEVELAND - An Ohio appeals court on March 23 affirmed a man's conviction for three counts of aggravated arson and one count of insurance fraud after overruling the defendant's argument that he was prejudiced by grand jury proceedings that involved the use of a Bureau of Alcohol, Tobacco and...

Mealey's Insurance - Judge: Factors Weigh In Favor Of Federal Court Retaining Jurisdiction

BLUEFIELD, W.Va. - A West Virginia federal judge on March 23 refused to dismiss an insurer's declaratory judgment lawsuit challenging coverage for a lawsuit alleging that the insured's employee filed fraudulent tax returns, finding that the factors weigh in favor of the federal court retaining...

Mealey's Insurance - Federal Judge: Excess Insurer Has No Duty To Defend, Indemnify Manufacturer

EVANSVILLE, Ind. - An Indiana federal judge on March 22 ruled in favor of an excess insurer in a manufacturer insured's breach of contract and bad faith lawsuit seeking coverage for an underlying lawsuit alleging claims for breach of contract, breach of express warranty, breach of implied warranty...

Mealey's Insurance - Dismissal Appropriate Based On Insurer's Withdrawal Of Reservation Of Rights

PHOENIX - Dismissal of an insurer's suit seeking a coverage declaration for an underlying state court lawsuit alleging personal injury claims caused by pigeon droppings is appropriate because the insureds entered into an agreement with the underlying plaintiff and the insurer withdrew its reservation...

Mealey's Insurance - Expert Allowed To Opine On Compliance Of Insurance Marketing Industry Standards

SAN ANTONIO - An expert is qualified to testify on independent marketing organizations (IMOs) in the insurance industry and regarding an IMO's "compliance or lack of compliance with industry standards," a Texas federal magistrate judge ruled March 24 (Wealthmark Advisors Inc. and David...