LexisNexis® Legal Newsroom
Mealey's Insurance - Majority: Application Of Revocation Rule To Policy Does Not Violate Constitution

WASHINGTON, D.C. - A majority of the U.S. Supreme Court on June 11 found that the retroactive application of Minnesota's revocation-upon-divorce statute to a life insurance policy does not violate the contracts clause of the U.S. Constitution, reversing an Eighth Circuit U.S. Court of Appeals ruling...

Mealey's Insurance - Judge Denies General Practitioner's Motion To Vacate Fraud Conviction

SAN JOSE, Calif. - A federal judge in California on June 8 denied a general practitioner's motion for acquittal on charges of health care fraud, finding that the spreadsheets and explanation of benefit (EOB) documents presented by the government constituted sufficient evidence showing that the doctor...

Mealey's Insurance - Bad Faith Claim Dismissed; Coverage Denial For Cracking Walls Was Fairly Debatable

BRIDGEPORT, Conn. - A Connecticut federal judge on June 6 dismissed claims alleging bad faith and violations of Connecticut's Unfair Trade Practices Act and Unfair Insurance Practices Act alleged against a homeowners insurer because the insurer's coverage denial was fairly debatable; however...

Mealey's Insurance - Judge Denies Protective Order On Reinsurance Info In Insurance Insolvency Case

ST. LOUIS - In a dispute over the mishandling of funds belonging to insolvent funeral insurers, a Missouri federal judge on June 8 denied a special deputy receiver's motion for protective order as to documents and communications relating to any assumption reinsurance agreements (Jo Ann Howard &...

Mealey's Insurance - 3rd Circuit: Insurer Has No Duty To Defend, Indemnify Faulty Workmanship Claim

PHILADELPHIA - A commercial general liability insurer has no duty to defend or indemnify faulty workmanship allegations against an insured subcontractor for problems experienced by a condominium development, the Third Circuit U.S. Court of Appeals ruled June 6, because the faulty work is not covered...

Mealey's Insurance - Texas High Court Partly Reverses Ruling In Hurricane Ike Coverage Dispute

AUSTIN, Texas - The Texas Supreme Court on June 8 affirmed in part and reversed in part an appeals court's ruling in a coverage dispute arising from Hurricane Ike damage, remanding to the appeals court the issue of whether the trial court properly disregarded some of the jury's findings (State...

Mealey's Insurance - High Court Will Not Review Whether ERISA Preempts Slayer Statute

WASHINGTON, D.C. - The U.S. Supreme Court on June 11 denied a petition for writ of certiorari of a lower court decision that held that a woman who was found not guilty of killing her husband by reason of insanity could not collect her deceased husband's pension benefits (Laborers' Pension Fund...

Mealey's Insurance - Landscaper: Reinsurer's Service Of Suit Over Arbitration Award Was Defective

LOS ANGELES - A landscape company says in its June 10 reply brief to a California federal court that service of suit was defective regarding a reinsurer's petition seeking confirmation of a $82,130.44 arbitration award (Applied Underwriters Captive Risk Assurance Company Inc. v. O'Connell Landscape...

Mealey's Insurance - Divided 6th Circuit Reverses Dismissal Of Suit Over Senior Center's Billing

CINCINNATI - A woman's False Claims Act (FCA) lawsuit accusing a senior living center of failing to submit to Medicare certifications supporting the need for medical services for patients was reinstated by a 2-1 Sixth Circuit U.S. Court of Appeals panel, after it found that the woman's allegations...

Mealey's Insurance - Magistrate Judge Finds Dismissal Of Reinsurers' RICO Lawsuit Appropriate

EL PASO, Texas - In a case alleging a scheme to take control over an auto dealership and to decline selling vehicle-protection products that are reinsured, a Texas federal magistrate judge on June 11 recommended that a federal civil Racketeer Influenced and Corrupt Organizations Act claim be dismissed...

Mealey's Insurance - Ruling In Favor Of Insured In Environmental Suit Is Not Appealable, Judge Says

NEW YORK - A New York federal judge on June 7 clarified that a prior ruling that an excess insurer owes its insured more than $55 million for environmental contamination costs incurred by the insured is not a final and appealable judgment (Olin Corp. v. Lamorak Insurance Co., et al., No. 84-1968, S.D...

Mealey's Insurance - Appeals Court Says Insurers Can't Recover ACA Risk-Corridor Payments

WASHINGTON, D.C. - Health insurers may not collect billions in Patient Protection and Affordable Care Act (ACA) risk-corridor funds because Congress specifically blocked payments, a majority of the Federal Circuit U.S. Court of Appeals said June 14 (Land of Lincoln Mutual Health Insurance Co. v. United...

Mealey's Insurance - Insureds Validly Assigned Rights Under Policies To Water Restoration Company

PHOENIX - Insureds whose homes sustained water damages validly assigned their rights under their homeowners policies to a water restoration company to collect payment for the remediation work, an Arizona appellate court said June 12 in rejecting the insurer's argument that the assignments were not...

Mealey's Insurance - 9th Circuit Says Life Insurer Did Not Act In Bad Faith In Canceling Policy

ANCHORAGE, Alaska - The Ninth Circuit U.S. Court of Appeals on June 14 affirmed a district court's dismissal of a bad faith claim against a life insurer after determining that the insurer acted reasonably in canceling a life insurance policy following the insured's failure to pay the policy premium...

Mealey's Insurance - Panel: Court Must Decide Jurisdiction In Insolvent Insurer's Indemnity Suit

HOUSTON - A trial court must decide its subject matter jurisdiction before addressing whether indemnitees breached an indemnity agreement with an insolvent insurer, a Texas appeals panel ruled June 14, vacating the lower court's ruling (Ullico Casualty Co., et al. v. Pelco Construction Company Inc...

Mealey's Insurance - Judgment Issued In Personal Injury Suit After Insolvent Insurer's $1M Settlement

NEW YORK - A New York justice on June 14 issued a judgment reflecting that two insureds are responsible for a $4 million judgment arising from a personal injury lawsuit after their insolvent insurer paid $1 million to the settlement of the case (Etta [Itty] Pruss v. Infiniti of Manhattan Inc., et al...

Mealey's Insurance - 11th Circuit: Evidence Supported Convictions For Arson Scheme

ATLANTA - An 11th Circuit U.S. Court of Appeals panel on June 14 affirmed rulings by a federal judge in Georgia denying two defendants' motions for acquittal, holding that the evidence presented by the government sufficiently showed that they conspired and committed mail fraud as part of a scheme...

Mealey's Insurance - Judge Certifies Question On Collapse In Insureds' Breach Of Contract Suit

HARTFORD, Conn. - In a breach of contract dispute over coverage for cracking in a basement, a Connecticut federal judge certified on June 15 a question to the state's high court on what constitutes "substantial impairment of structural integrity" for purposes of applying a collapse provision...

Mealey's Insurance - Magistrate Judge Grants Reinsurer's Motion To Compel Production Of Documents

SACRAMENTO, Calif. - In two putative class actions over a reinsurance participation agreement (RPA), a California federal magistrate judge on June 14 ordered an insurance agency to produce nonprivileged, responsive information requested by a reinsurer and its affiliates (Shasta Linen Supply Inc. v. Applied...

Mealey's Insurance - Disability Benefits Suit Remanded For Determination On Equitable Remedy

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 15 remanded a disability benefits dispute to the district court to determine whether the claimant is entitled to equitable relief based on the disability plan's failure to properly offset the claimant's disability benefits (Petar...

Mealey's Insurance - 9th Circuit Rejects Excess Insurer's Appeal Seeking $1M From Primary Insurer

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on June 18 affirmed a lower court's ruling that a primary insurer does not owe an additional $1 million under a Parking Operations Errors and Omissions Endorsement for injuries allegedly incurred at a parking garage (Scottsdale Insurance Company...

Mealey's Insurance - Objections Overruled, Insurance Bad Faith Suit Remanded To State Court

HOUSTON - A federal judge in Texas on June 18 overruled a series of objections filed by an insurer in an insurance breach of contract and bad faith lawsuit, ruling that a federal magistrate judge properly recommended that insureds' lawsuit against the insurer stemming from denial of their homeowners...

Mealey's Insurance - California Federal Judge Overturns Insurer's Denial Of LTD Benefits

SAN FRANCISCO - A disability claimant is entitled to long-term disability (LTD) benefits because the evidence from the claimant's treating physicians and evidence obtained from the disability insurer's medical reviewers support a finding that the claimant is disabled under the plan's any...

Mealey's Insurance - Judge: No Coverage For Insured's Costs From Nondefective Repairs

SALT LAKE CITY - Two insurers owe no coverage to an insured contractor for costs incurred from repairing nondefective parts of construction projects as a result of the process to remove and replace a subcontractor's nonconforming lumber, a Utah federal judge ruled June 18 (Big-D Construction Midwest...

Mealey's Insurance - Tax Judge: Company Did Not Issue Insurance, Reinsurance Contracts

WASHINGTON, D.C. - Because a company did not issue insurance or reinsurance contracts during the tax years at issue, a U.S. tax judge ruled June 18 that it did not receive more than 50 percent of its gross receipts from insurance premiums (Reserve Mechanical Corp. v. Commissioner of Internal Revenue...