LexisNexis® Legal Newsroom
Mealey's Insurance - Reinsured Says It Is Not Necessary To Show Reasons For Settling Asbestos Claims

NEW HAVEN, Conn. - An insurer told a federal court in Connecticut on March 20 that its reinsurer is putting requirements on it that are not universally accepted as necessary under the follow-the-settlements doctrine (Travelers Casualty and Surety Company, f/k/a The Aetna Casualty and Surety Company v...

Mealey's Insurance - Federal Judge Rules On Dueling Summary Judgment Motions In Hailstorm Dispute

JEFFERSON CITY, Mo. - A Missouri federal judge on March 16 granted in part and denied in part motions for summary judgment by insureds and a homeowners insurer in a class action alleging that the insurer committed breach of contract when it unlawfully applied a policy's $1,000 deductible to an actual...

Mealey's Insurance - California Federal Judge Says Complete Diversity Does Not Exist, Remands Mold Suit

LOS ANGELES - Because a plaintiff can arguably state a claim against an insurance claims adjuster for intentional infliction of emotional distress, the claims adjuster is not a sham defendant and was not fraudulently joined to defeat federal jurisdiction, a California federal judge said March 17 in remanding...

Mealey's Insurance - Insurer's Data Satisfies Florida's Definition Of Trade Secret, Majority Affirms

TALLAHASSEE, Fla. - A majority of a Florida appeals court on March 20 affirmed a lower court's ruling that an insurer's quarterly supplemental reporting (QUASR) data satisfies the definition of trade secret under state law and is, therefore, exempt from public disclosure (Office of Insurance...

Mealey's Insurance - Reinsurer Says Insurer Never Asked For Policy To Be Reinsured

PHILADELPHIA - A reinsurer asked a federal court in Pennsylvania on March 21 to dismiss an insurer's breach of contract counterclaim because the insurer allegedly never linked an underlying policy to a facultative certificate and, therefore, there is no contract between the parties reinsuring that...

Mealey's Insurance - Judge Agrees With Special Master, Finalizes Receivership Disallowance Of Claim

AUSTIN, Texas - A Texas judge on March 20 approved an application by an insolvent insurer's special deputy receiver (SDR) and declared the disallowance of a certain house fire claim final (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D...

Mealey's Insurance - Minnesota Federal Judge: Plan's Denial Of Benefits Was Not Arbitrary And Capricious

MINNEAPOLIS - A benefit plan did not act arbitrarily and capriciously in denying a participant's claim for short-term disability benefits because substantial evidence supports the plan's finding that the participant was able to return to work, a Minnesota federal judge said March 17 (Jeremy Braden...

Mealey's Insurance - Judge: Fact Issue Exists As To Whether Insured Submitted Acceptable Proof Of Loss

NEWARK, N.J. - Finding that there is a genuine issue of material fact regarding whether an insured complied with a provision of a Standard Flood Insurance Policy (SFIP) regarding proof of loss, a New Jersey federal judge on March 20 denied a federal flood insurer's motion for summary judgment in...

Mealey's Insurance - Judge: Coverage For Negligence In Performing Insurance Services Was Not Triggered

LOS ANGELES - A California federal judge on March 17 dismissed without prejudice a breach of contract and bad faith lawsuit against a professional liability insurer in a coverage dispute arising from the insured's alleged breach of a loan agreement (GemCap Lending, LLC v. Scottsdale Indemnity Co...

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...