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Mealey's Insurance - Insurer Was Not Entitled To Rescind Policy, California Panel Says In Reversal

SAN FRANCISCO - A California appeals panel on June 12 reversed a lower court's finding that an insurer was entitled to rescind an "Owners, Landlords & Tenants Liability Coverage" insurance policy, finding that the insurer failed to satisfy its burden of showing that the insured made...

Mealey's Insurance - Claimant Owed Disability Benefits Under Plan's 'Own Occupation' Provision

SAN FRANCISCO - Following a one-day bench trial, a California federal judge on June 13 determined that a disability claimant submitted sufficient evidence showing that he was disabled under a plan's "own occupation" provision but failed to prove that he was disabled under the plan's...

Mealey's Insurance - Appeals Court Says Evidentiary Hearing Needed In Insurance Fraud Suit

LOS ANGELES - An evidentiary hearing should have been held to determine whether a California Highway Patrol (CHP) officer had sufficient information in 2010 to begin an investigation into whether a man committed insurance fraud by further damaging a tow truck, a California appeals panel ruled June 12...

Mealey's Insurance - Panel: Court Did Not Err In Granting State's Exception Of No Right Of Action

NEW ORLEANS - A Louisiana appeals panel on June 14 affirmed a lower court's ruling that granted the State of Louisiana's exception of no right of action maintaining that it was not liable for a contractor's alleged negligence in elevating the insureds' home following Hurricane Katrina...

Mealey's Insurance - Termination Of Disability Benefits Was Reasonable, 9th Circuit Panel Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 12 affirmed a district court's ruling that the termination of a disability claim was reasonable based on the plan's mental health coverage limitation and the medical evidence considered by the disability insurer (Kathee A. Colman...

Mealey's Insurance - Disability Plan Did Not Abuse Its Discretion By Denying Benefits Claim, Judge Says

HOUSTON - A Texas federal judge on June 14 granted a disability plan's motion for judgment on the administrative record after determining that the plan did not abuse its discretion when it denied a former National Football League player's disability claim (Brian C. Jackson v. NFL Disability and...

Mealey's Insurance - Illinois Panel Finds Stay Of Coverage Suit Over Defamation Claim Is Appropriate

ELGIN, Ill. - An Illinois appeals panel on June 14 reversed and remanded a lower court's denial of an insured's motion to stay his insurer's declaratory judgment lawsuit challenging coverage for an underlying defamation claim (State Farm Fire & Casualty Company v. David John and Wheaton...

Mealey's Insurance - Wisconsin Federal Judge Finds Termination Of Benefits Was Not Arbitrary

MADISON, Wis. - A Wisconsin federal judge on June 14 granted summary judgment in favor of a disability plan after determining that the plan's decision to terminate a claimant's benefits after learning that the claimant worked as a dog trainer was not arbitrary and capricious (Sarah B. Kalnajs...

Mealey's Insurance - Substantial Evidence Supports Termination Of Disability Benefits, Appeals Panel Says

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on June 14 affirmed a district court's ruling that a disability insurer did not abuse its discretion in terminating a claimant's long-term disability benefits because there is substantial evidence supporting the insurer's termination of...

Mealey's Insurance - New York Federal Judge: Bipolar Disorder Subject To Disability Plan's 24-Month Cap

BROOKLYN, N.Y. - A New York federal judge on June 14 said a disability insurer did not act arbitrarily and capriciously in relying on the American Psychiatric Association's definition of mental illness when determining that bipolar disorder is a mental illness and subject to the plan's 24-month...

Mealey's Insurance - Reinsurance Executives Ask For $50M RICO Suit To Be Sent To Arbitration

NEW YORK - Three reinsurance executives on June 15 requested that a New York federal court send a $50 million Racketeer Influenced and Corrupt Organizations Act case against them to arbitration, arguing that the arbitration clause in the reinsurance agreement applies to them as well as their company...

Mealey's Insurance - Brazilian Reinsurer Says No Duty To Indemnify $5M Under Arbitration Award

NEW YORK - A Brazilian reinsurer on June 14 argued that a New York federal court should deny an insurer's request for $5 million under an arbitration award in order to pay a settlement it reached with a steelmaker because the settlement does not require reinsurance coverage (National Indemnity Co...

Mealey's Insurance - 9th Circuit: Dispute Over Phrase 'Direct Supplier' Is Question Of Fact For Jury

PASADENA, Calif. - The Ninth Circuit U.S. Court of Appeals on June 19 found that whether a manufacturer of hard-disk drives provided to a set-top box company was a direct supplier of a satellite television provider is a question of fact to be resolved by a jury, reversing and remanding a lower court's...

Mealey's Insurance - Texas High Court Grants Insurer New Trial In Defect Coverage Dispute

AUSTIN, Texas - A judgment in an underlying construction defect lawsuit is not binding on an insurer because its insured builder did not have a sufficient financial stake in the outcome due to a pretrial agreement, the Texas Supreme Court ruled June 16, granting a new trial over whether the insurer must...

Mealey's Insurance - 9th Circuit Finds Jury Instructions Were Adequate For Dispute Over Coverage

SAN FRANCISCO - A Ninth Circuit U.S. Court of Appeals panel on June 16 overruled arguments from a general contractor that a jury was not properly instructed about certain exclusions included in a policy obtained from ProBuilders Specialty Insurance Co., finding that the contactor was reading the exclusions...

Mealey's Insurance - 9th Circuit Panel Upholds Court's Bad Faith Ruling In Auto Coverage Suit

PASADENA, Calif. - A federal district court did not err in denying an insurer's motion for judgment as a matter of law on an insurance bad faith claim because a reasonable jury could have determined that the insurer had a reasonable opportunity to settle the claims against its insured, a Ninth Circuit...

Mealey's Insurance - 'Insured Vs. Insured' Exclusion Bars Coverage For Trustee's Breach Of Fiduciary Suit

CINCINNATI - A majority of the Sixth Circuit U.S. Court of Appeals on June 20 held that a management liability insurance policy's "insured-versus-insured" exclusion bars coverage for a liquidation trustee's $18.8 million breach of fiduciary lawsuit against officers of the bankrupt holding...

Mealey's Insurance - Judge Dismisses Insurer, Reinsurer's Negligence Suit For Lack Of Jurisdiction

SCRANTON, Pa. - An insured's presence destroys complete diversity jurisdiction in a negligence lawsuit also involving its subrogated insurer and reinsurer, a Pennsylvania federal judge ruled June 20, dismissing the lawsuit because it cannot proceed without the insured (RAD Manufacturing LLC f/k/a...

Mealey's Insurance - Pre-Existing Condition Provision Barred Claim For Long-Term Disability Benefits

HARRISBURG, Pa. - A Pennsylvania federal judge on June 19 determined that a disability insurer's denial of long-term disability (LTD) benefits was not arbitrary and capricious because the policy included a pre-existing condition exclusion that clearly precluded coverage to the claimant (Yvonne Hilbert...

Mealey's Insurance - Georgia Federal Judge Dismisses 2 Claims Against Broker In Food Contamination Suit

ATLANTA - An insured's breach of contract claim against its insurance broker must be dismissed because the insured, seeking coverage for underlying suits arising out of exposure to hepatitis A from food purchased from the insured, failed to show that a valid contract existed between the parties,...

Mealey's Insurance - New York Appeals Panel: Reinsurer's Loan Was Not A Fraudulent Conveyance

NEW YORK - A reinsurer's loan was not a fraudulent conveyance because a loan advance, regardless of the size of the collateral pledged, is "fair consideration" for the pledge, the First Department New York Supreme Court Appellate Division ruled June 20 (Stillwater Liquidating LLC v. Partner...

Mealey's Insurance - California Appeals Panel Says Issue Of Fact Exists On Insurer's Denial Of Coverage

SANTA ANA, Calif. - The Fourth District California Court of Appeal on June 19 reversed a summary judgment ruling entered in favor of an insurer after determining that a genuine issue of material fact exists as to whether the insurer's refusal to cover an insured's epidural injections for injuries...

Mealey's Insurance - Panel: Insured Vs. Insured Exclusion Bars Directors, Officers Liability Coverage

TRENTON, N.J. - A New Jersey appeals panel on June 21 affirmed a lower court's finding that an insurance policy's insured vs. insured exclusion bars directors and officers liability coverage for underlying counterclaims involving the insured's officers (Michael Abboud v. National Union Fire...

Mealey's Insurance - Judge Grants Insurer's Summary Judgment Motion On Bad Faith Claim

MUSKOGEE, Okla. - An insured failed to show that material issues of fact exist as to whether his insurer acted in bad faith in denying his claim for coverage under the terms of a commercial property insurance policy and, as a result, is not entitled to punitive damages on the bad faith claim, a federal...

Mealey's Insurance - Denial Of Disability Claim Was Reasonable Based On Evidence, Federal Judge Says

DETROIT - A disability insurer did not act arbitrarily and capriciously in denying a claim for disability benefits because the medical evidence supports the denial of benefits and the claimant failed to provide any evidence to rebut the insurer's evidence, a Michigan federal judge said June 20 (Philip...