LexisNexis® Legal Newsroom
Mealey's Insurance - Judge Rejects Claim That Insured Failed To Timely Submit Paperwork To Port Plan

SAN FRANCISCO - Dismissal of a life insurance policy beneficiary's breach of contract and bad faith lawsuit against an insurer is not proper because the beneficiary has shown that his deceased wife timely completed all necessary paperwork and submitted to her employer as administrator of the policy...

Mealey's Insurance - Insured Won't Present Evidence, Testimony In Making Bad Faith Claim, Judge Rules

HATTIESBURG, Miss. - A federal judge in Mississippi on July 18 granted three motions in limine filed by an insurer in an insurance breach of contract and bad faith lawsuit, precluding an insured from presenting evidence, damages testimony and other testimony to show that the insurer acted in bad faith...

Mealey's Insurance - Panel: No Defense Owed For Additional Insured's Alleged Intentional Bad Acts

CHICAGO - An insurer had no duty to defend an additional insured for construction defects in condominium units because nothing accidental was alleged, an Illinois appeals panel affirmed July 20, finding that the allegations include the additional insured's intentional bad acts or awareness of faulty...

Mealey's Insurance - Insured Asks 10th Circuit To Certify Question Of Law To New Mexico High Court

DENVER - Because no New Mexico court has addressed the application of the "owned or occupied" exclusion in the context of environmental contamination to sovereign property, the 10th Circuit U.S. Court of Appeals should certify a question regarding the exclusion's application to the New...

Mealey's Insurance - State Farm Awarded Judgment After Judge Finds Man Misrepresented Residency

ALLENTOWN, Pa. - State Farm Fire and Casualty Co.'s motion for judgment was granted July 21 by a federal judge in Pennsylvania who found that the insurer could deny a man's claim under his automobile policy because he misrepresented that he was a resident of New York rather than Pennsylvania...

Mealey's Insurance - Judge Says Expert Did Not Offer Testimony On Defect In Insurer's Subrogation Suit

SOUTH BEND, Ind. - An expert did not provide any testimony as to a manufacturing defect to support an insured's motion for interlocutory review, an Indiana federal judge ruled July 19 in an insurer's subrogation lawsuit on claims for design defect and failure to adequately warn (The Cincinnati...

Mealey's Insurance - Judge: Faulty Workmanship Bars Insurance Claim For Damages From Collapse

ALEXANDRIA, Va. - A faulty workmanship exclusion precludes coverage for collapse damages caused by an insured's actions related to the excavation of a basement coupled with the failure to install underpinning to secure the building's foundation, a Virginia federal judge ruled July 21, finding...

Mealey's Insurance - South Dakota Majority Reverses No Coverage Ruling For Cattle Killed In Winter Storm

PIERRE, S.D. - A majority of the South Dakota Supreme Court on July 20 reversed a lower court's ruling that an insurer has no duty to indemnify its insureds for their loss of 93 cattle during winter storm Atlas, finding that the insurance policy's drowning provision is ambiguous (Richard Papousek...

Mealey's Insurance - Judge: Insurer Fails To Show All Claims Barred By Contractual Liability Exclusion

SAN JOSE, Calif. - A California federal judge on July 22 held that an insurer has failed to satisfy its burden of establishing that all claims alleged in underlying class actions are excluded from coverage under a "products/completed operations liability and professional liability" insurance...

Mealey's Insurance - Insureds' Water Damage Is Subject To A 'Concurrent Cause' Exclusion, Panel Says

FRANKFORT, Ky. - The "Back-Up of Sewers and Drains" coverage provided under an insurance policy is subject to a "concurrent cause" exclusion, a Kentucky appeals panel ruled July 22, affirming summary judgment to an insurer that insureds did not suffer a covered loss from water damage...

Mealey's Insurance - Judge OKs Return Of Reserve Funds Under Assumption Reinsurance Agreement

CHICAGO - An Illinois judge on July 22 approved the return of nearly $4 million Canadian to the Lumbermens Mutual Casualty Co.'s liquidation estate that was held by a Canadian insurer that had been paying certain claims and obligation of Lumbermens' in Canada (People of the State of Illinois...

Mealey's Insurance - Judge: No Coverage For Insured's Sales Commission Dispute With Former Employee

DULUTH, Minn. - A Minnesota federal judge entered judgment in favor of an insurer on July 25, three days after finding that the insurer's duty to defend or indemnify a food marketing and distribution company insured was never triggered because the insured failed to notify the insurer "as soon...

Mealey's Insurance - Judge: DirecTV's Television Programming Is Not 'Data' Under 2 Policy Exclusions

BALTIMORE - A Maryland federal judge ruled July 22 that an insurer has a duty to defend its insured against an underlying lawsuit brought by DirecTV LLC, rejecting the insurer's argument that coverage is barred by two "unauthorized access" policy exclusions (Ellicott City Cable LLC, et...

Mealey's Insurance - Diagnostic Imaging Company To Pay $3.5M To Settle False Claims Act Suit

DALLAS - A Texas diagnostic imaging services company agreed to pay $3.5 million to resolve allegations that it violated the False Claims Act (FCA) when improperly billing Medicare and Medicaid for services that were provided without proper medical supervision, the U.S. Attorney's Office for the Northern...

Mealey's Insurance - Company Alleging Ownership Of Insurer Moves To Intervene In Reinsurance Dispute

NEW YORK - A company claiming to be the owner of an insurer being sued by Certain Underwriting Members at Lloyd's, London over an arbitration award moved to intervene in the proceedings in a federal court in New York on July 22 (Certain Underwriting Members at Lloyd's, London Subscribing to Treaty...

Mealey's Insurance - Penalty Was Correctly Assessed But Must Be Recalculated, Panel Says

SAN FRANCISCO - A district court did not err in assessing a statutory penalty against a disability plan administrator for failing to provide a requested plan document within 30 days, but the district court must recalculate the penalty to assess the penalty based solely on the failure to timely produce...

Mealey's Insurance - Justice Approves $28M Settlement Of Asbestos Claims With Insolvent Insurer

CONCORD, N.H. - A New Hampshire justice on July 22 approved a $28 million asbestos bodily injury related settlement between the insolvent Home Insurance Co. and Ingersoll-Rand Co. (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

Mealey's Insurance - Federal Judge Rejects Insured's Request To Amend Superstorm Sandy Complaint

BROOKLYN, N.Y. - A New York federal judge on July 22 denied an insured's motion to amend her complaint in a Superstorm Sandy coverage dispute (Joan Murphy v. The National Flood Insurance Program, No. 13-6757, E.D. N.Y.; 2016 U.S. Dist. LEXIS 96061).

Mealey's Insurance - Retailer Appeals Denial Of Coverage For Spyware Lawsuits To 9th Circuit

SAN FRANCISCO - A rent-to-own (RTO) franchisee argues in a July 25 brief in the Ninth Circuit U.S. Court of Appeals that it was entitled to a defense and indemnity from its insurers in two suits related to its installation of spyware on a couple's computer, asserting that the underlying plaintiffs...

Mealey's Insurance - Authorities Behind Insolvent Title Insurer Ask Court To Set Claims Deadline

AUSTIN, Texas - The special deputy receiver (SDR) of an insolvent title insurer and the Texas Title Insurance Guaranty Association (TTIGA) asked a Texas court on July 22 to set a claims-filing deadline and approve their notification and claims-processing procedures (The State of Texas v. Millennium Closing...

Mealey's Insurance - Pollution Exclusion Is Ambiguous, Does Not Bar Coverage, Federal Judge Says

HAMMOND, Ind. - Because a pollution exclusion does not define what constitutes pollution or contamination, the exclusion is ambiguous and cannot be construed as a bar to coverage, an Indiana federal judge determined July 25 in denying the insurer's motion for summary judgment (Old Republic Insurance...

Mealey's Insurance - Federal Judge Transfers Coverage Dispute Arising From Alleged 'Sham' Investments

DULUTH, Minn. - A Minnesota federal judge on July 26 granted an investment adviser's motion to transfer an insurer's lawsuit seeking a declaration that it has no duty to defend against an underlying action brought by the investment adviser's former client (Everest Indemnity Insurance Co....

Mealey's Insurance - New York Justice Orders Establishment Of Ancillary Receivership Proceeding

NEW YORK - A New York justice on July 25 ordered the implementation of an ancillary receivership proceeding of an insolvent Missouri insurer (In the Matter of the Application of Maria T. Vullo, Acting Superintendent of Financial Services of the State of New York, for an Order of Appointment as Ancillary...

Mealey's Insurance - 6th Circuit: No Coverage For $770,065 Malpractice Judgment Against Law Firm

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on July 28 affirmed a lower federal court's ruling that a law firm insured failed to provide timely notice of an incident that could potentially give rise to a malpractice claim, finding that there is no coverage for an underlying $770,065 judgment...

Mealey's Insurance - Insurer, Reinsurer Tell Court They Have Reached An Agreement In Principle

BOSTON - OneBeacon American Insurance Co. and Transatlantic Reinsurance Co. jointly told a federal court in Massachusetts on July 28 that they have reached an agreement in principle regarding a reinsurance billing dispute (OneBeacon America Insurance Company v. Transatlantic Reinsurance Company, No....