LexisNexis® Legal Newsroom
Mealey's Insurance - 11th Circuit: No Coverage For Debit Card Scam Under Computer Fraud Policy

ATLANTA - Concluding that a debit card firm's loss due to fraud did not result directly from computer fraud, even though computers were used by the fraudsters, an 11th Circuit U.S. Court of Appeals panel on May 10 ruled that there was no coverage for the firm's resulting loss under its computer...

Mealey's Insurance - Panel: Ambiguous Policy Language Requires Reversal Of Professional Liability Suit

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on May 10 reversed a lower federal court's ruling that coverage for an underlying qui tam action is limited to a professional liability insurance policy's $25,000 billing errors endorsement sublimit, finding that the ambiguous policy language...

Mealey's Insurance - Disability Claimant Capable Of Performing Sedentary Work, Judge Determines

OAKLAND, Calif. - A California federal judge on May 11 determined that a disability insurer properly denied a claimant long-term disability benefits under a plan's any-occupation standard because the evidence supports the insurer's finding that the claimant was capable of performing sedentary...

Mealey's Insurance - Owner Of Mental Health Services Clinic Sentenced To 6 Years For Insurance Fraud

HARRISBURG, Pa. - A federal judge in Pennsylvania on May 9 sentenced the owner of a mental health services clinic to six years in prison and ordered her to pay $151,122.17 in restitution for billing Medicare for psychiatric services provided to the elderly and adolescents by unlicensed and untrained...

Mealey's Insurance - Judge: Insurer Has No Duty To Defend Corporate Entity Carrying Out Pizza Franchise

PEORIA, Ill. - An Illinois federal judge found on May 10 that an insurance policy cannot be construed to make an insurer liable to defend or indemnify a corporate entity doing business as a pizza franchise and its employee against an underlying wrongful death lawsuit arising out of an automobile accident...

Mealey's Insurance - Insureds Were Prejudiced By Insurer's Refusal To Provide Independent Counsel, Panel Says

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on May 14 reversed a district court's ruling that an insurer owes no coverage to its insureds for a gasoline leak that contaminated a nearby pond because the insurer is estopped from denying coverage as the insureds were clearly prejudiced by...

Mealey's Insurance - Third-Party Bad Faith Claims Barred By Statute Of Limitations, Panel Says

SEATTLE - The Ninth Circuit U.S. Court of Appeals on May 11 affirmed a district court's ruling that statutory and common-law third-party bad faith claims alleged against an auto insurer are barred by the statute of limitations because the claimant did not file suit against the insurer until more...

Mealey's Insurance - State Farm's Fraud Suit Not Subject To Abstention, Preemption, Judge Rules

FLINT, Mich. - State Farm Mutual Automobile Insurance Co.'s lawsuit accusing defendants of engaging in a scheme to submit fraudulent bills under its insureds' no-fault insurance benefits coverage is not subject to abstention or preemption, a federal judge in Michigan ruled May 14 in denying the...

Mealey's Insurance - Auto Insurer Did Not Act In Bad Faith In Handling Underinsured Motorist Claim

SCRANTON, Pa. - A Pennsylvania federal judge on May 11 granted an insurer's motion for summary judgment on a bad faith claim after determining that the insured failed to provide clear and convincing evidence that the insurer acted in bad faith in its handling of the insured's claim for underinsured...

Mealey's Insurance - Coverage Suit Over Failed Business Relationship Dismissed After Settlement Reached

MOBILE, Ala. - An Alabama federal judge on May 14 dismissed without prejudice a commercial general liability insurer's declaratory judgment lawsuit after the parties announced that they reached an amicable settlement (Acadia Insurance Co. v. SouthernPointe Group, Inc., et al., No. 17-01368, N.D....

Mealey's Insurance - Judge Orders Parties To Show Cause Why Entire Coverage Suit Should Not Be Stayed

SANTA ANA, Calif. - A California federal judge on May 11 ordered the city of Laguna Beach and its insurer to show cause why a coverage dispute over a sewer backup should not be stayed in its entirety pending resolution of the underlying lawsuit (Tokio Marine Specialty Insurance Company v. Laguna Beach...

Mealey's Insurance - Criminal Acts Exclusion Bars Coverage For College Student's Death, Panel Affirms

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 affirmed a lower federal court's finding that the insurer of homeowners and excess coverage policies issued to the parents of a college student convicted of killing another student has no duty to defend or indemnify against a wrongful...

Mealey's Insurance - U.S. Government Says Challenge To Church Plan Exemption Must Be Rejected

ORLANDO, Fla. - A district court should reject a plaintiff's challenge to the constitutionality of the Employee Retirement Income Security Act's church plan exemption because the exemption meets the requirements of the establishment clause of the First Amendment to the U.S. Constitution, the...

Mealey's Insurance - Disability Insurer's Denial Of Claims Was Reasonable, Federal Judge Determines

CHICAGO - A disability insurer's denial of short-term disability (STD) and long-term disability (LTD) benefits was reasonable as the insurer undertook a thorough review of the claims for benefits, an Illinois federal judge said May 15 in granting the insurer's motion for summary judgment (Shirley...

Mealey's Insurance - Insured's Motion To Remand Auto Theft Suit Denied; Amount In Controversy Met

SAN FRANCISCO - A California federal judge on May 14 denied an insured's motion to remand a suit alleging claims for breach of contract and bad faith arising out of an insurer's refusal to pay for the theft of the insured's vehicle because diversity of citizenship exists and the amount in...

Mealey's Insurance - Florida Panel Again Reverses Ruling In Hurricane Wilma Coverage Dispute

MIAMI - A Florida appeals panel on May 16 reversed a lower court's final judgment against an insurer in a dispute over coverage for insureds' $59,719.25 supplemental Hurricane Wilma claim, finding that the insured's failure to comply with their post-loss obligations under the policy relieved...

Mealey's Insurance - 4th Circuit Affirms Ruling In Life Insurer's Favor In Supplemental Coverage Suit

RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on May 15 held that no reasonable jury could find that a life insurer had a fiduciary duty under the Employee Retirement Income Security Act to solicit supporting materials for coverage beyond the guaranteed issue amount or notify new employees...

Mealey's Insurance - Panel Affirms Judgment In Favor Of Insurer In Water Damage Dispute

AMARILLO, Texas - The Seventh District Texas Court of Appeals on May 14 affirmed a trial court's ruling in favor of an insurer after determining that the trial court did not err in concluding that the insurer did not breach its contract or act in bad faith in its handling of the insured's claim...

Mealey's Insurance - Federal Magistrate Judge Says Surety Is Entitled To Reimbursement For Paid Claims

SAN FRANCISCO - A California federal magistrate judge on May 15 determined than a surety is entitled to reimbursement of more than $4 million for claims it paid on behalf of a construction company that contracted with the government on a number of construction projects (Travelers Casualty and Surety...

Mealey's Insurance - Disability Claimant Alleges Denials Were Based On Profit-Making Motive

CHATTANOOGA, Tenn. - A disability insurer breached its contract and acted in bad faith when it terminated a claimant's short-term disability (STD) benefits and denied a claim for long-term disability benefits because the decisions were based on a profit-making motive rather than the evidence of the...

Mealey's Insurance - Judge Refuses To Reconsider Ruling In Coverage Dispute Over Sexual Assault Claim

NEW YORK - A New York federal judge on May 15 denied a commercial general liability insurer's motion to reconsider his finding that an unexplained delay of at least 15 months between the date the insurer learned of the grounds to deny coverage of an underlying sexual assault suit and the date it...

Mealey's Insurance - Pollution Exclusion Bars Coverage For Noxious Fumes, Odors, Judge Says

COLUMBUS, Ga. - An insurer has no duty to defend its insured against an underlying suit alleging damages as a result of odors emanating from an insured's holding pond because the policy's pollution exclusion clearly bars coverage for the underlying suit, a Georgia federal judge said May 16 (Recyc...

Mealey's Insurance - New York Panel Reinstates Claims Against Insurer, Oil Remediation Company

BROOKLYN, N.Y. - The Second Department New York Supreme Court Appellate Division on May 16 reinstated claims of gross negligence and punitive damages against an insurer and a remediation company after determining that the insureds sufficiently stated facts to support the claims (Richard Bennett, et al...

Mealey's Insurance - Policies Must Be Construed As Primary Policies In Asbestos Exposure Coverage Suit

ELGIN, Ill. - The First District Illinois Appellate Court on May 15 affirmed a trial court's finding that insurance policies issued between 1977 and 1985 to an insured who is seeking coverage for an asbestos exposure claim are primary policies with self-insured retentions and cannot be considered...

Mealey's Insurance - Coverage For Dog Attack Barred By Policy Exclusion, Wisconsin Panel Affirms

WAUKESHA, Wis. - A Wisconsin appeals panel on May 16 affirmed a lower court's finding that a homeowners insurance policy unambiguously excludes coverage for injuries that were caused by a dog with a prior history of causing injury, rejecting the appellants' argument that the policy is contrary...