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Mealey's Insurance - 7th Circuit Panel Finds Benefits Termination Was Not Arbitrary And Capricious

CHICAGO - A disability insurer's termination of benefits was not arbitrary and capricious because the evidence supported the termination and the insurer minimized any conflict of interest by employing a number of safeguards, the Seventh Circuit U.S. Court of Appeals said Jan. 6 (Donna Geiger v. Aetna...

Mealey's Insurance - Insureds' Lack Of Breach Of Contract Claim Leads To Dismissal Of Bad Faith Claim

TAMPA, Fla. - Because insureds have failed to bring a claim for breach of contract, they have failed to state a claim for bad faith and have violated the particularity requirement pursuant to the Federal Rules of Civil Procedure, a federal judge in Florida ruled Jan. 9 (Fred Fox, et al. v. Starr Indemnity...

Mealey's Insurance - No Coverage Owed For Environmental Contamination, Federal Magistrate Judge Says

HAMMOND, Ind. - Insureds seeking coverage for environmental contamination discovered on a property they purchased are not entitled to coverage because the policy bars coverage for known or unknown property damage and for property damage that began before the policy's inception, an Indiana federal...

Mealey's Insurance - Judge: No Indemnification Owed For Water Damage Caused By Insured

CHICAGO - An insurer has no duty to indemnify an insured and no duty to reimburse an additional insured for alleged water damage to an apartment building because there was no covered "occurrence" for the insured's failure to properly cover the building's roof, an Illinois federal judge...

Mealey's Insurance - Panel: Insurer Entitled To Recoupment Of Costs Defending Trade Secret Dispute

SAN FRANCISCO - A California appeals panel on Jan. 10 affirmed a lower court's grant of summary judgment in favor of an insurer seeking recoupment of the costs it incurred in defending its agents against claims it brought against the agents involving trade secrets (State Farm Fire And Casualty Co...

Mealey's Insurance - New York High Court Certifies Reinsurance Liability Cap Question

ALBANY, N.Y. - The New York Court of Appeals on Jan. 10 certified a question from the Second Circuit U.S. Court of Appeals regarding reinsurance liability cap limits as they relate to per-occurrence loss and expense (Global Reinsurance of America v. Century Indemnity Company, No. 34, N.Y. App.).

Mealey's Insurance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two...

Mealey's Insurance - South Carolina High Court Affirms Time-On-The-Risk Allocation Of Insurer's Costs

COLUMBIA, S.C. - The majority of the South Carolina Supreme Court on Jan. 11 affirmed a special referee's finding that coverage under commercial general liability insurance policies was triggered and calculation of an insurer's pro rata portion of the progressive damages based on its time on...

Mealey's Insurance - Directors, Officers Policy Does Not Cover FDIC's Claims, Majority Says, Reverses

PASADENA, Calif. - A majority of the Ninth Circuit U.S. Court of Appeals on Jan. 10 found that a directors and officers liability insurance policy unambiguously excludes from coverage the Federal Deposit Insurance Corp.'s negligence, gross negligence and breach of fiduciary duty claims against a...

Mealey's Insurance - Insured's Insurance Bad Faith Claim Survives Motion To Dismiss

SCRANTON, Pa. - A federal judge in Pennsylvania on Jan. 12 denied an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that insured has pleaded sufficient evidence to support the claim (Robert Hughes v. State Farm Mutual Automobile Insurance Co., No. 16...

Mealey's Insurance - Rescission Of Product Contamination Policy Was Proper, 3rd Circuit Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 11 affirmed that an insurer was entitled to rescind a product contamination insurance policy because it is clear that the insured made an intentional misrepresentation on the policy application upon which the insurer relied before issuing...

Mealey's Insurance - Pollution Exclusions Clearly Bar Coverage For Underlying Water Contamination Judgment

ST. LOUIS - A Missouri federal judge did not err in granting three insurers' motions for judgment on the pleadings in a suit filed by a class representative seeking to satisfy an $82 million judgment entered against the insured for damages arising out of water contamination, the Eighth Circuit U...

Mealey's Insurance - 5th Circuit: Evidence Supported Finding That Man Intentionally Destroyed Car

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on Jan. 13 affirmed a verdict in favor of an insurance company, finding that evidence presented during a trial sufficiently showed that a man intended to destroy a 1956 Mercedes-Benz to obtain insurance proceeds (Foremost Insurance Company v....

Mealey's Insurance - 9th Circuit Certifies 2 Questions To California High Court In Environmental Suit

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Jan. 13 certified two questions to the California Supreme Court regarding whether California's notice-prejudice rule is a fundamental public policy for the purpose of choice-of-law analysis and whether a consent provision can be interpreted...

Mealey's Insurance - Insured Not Entitled To Defense From 3 Insurers, 9th Circuit Panel Affirms

SAN FRANCISCO - A district court did not err in determining that an insured seeking coverage from three insurers for an underlying environmental lawsuit is not entitled to coverage under the policies because the insured failed to tender the underlying suit to the insurers and received a defense for the...

Mealey's Insurance - Issues Of Material Fact Preclude Summary Judgment In Avian Flu Suit, Federal Judge Says

MINNEAPOLIS - Because issues of material fact exist regarding how an outbreak of the avian flu virus was transmitted, a Minnesota federal judge on Jan. 12 denied both the insurer and insured's motions for summary judgment (Rembrandt Enterprises Inc. v. Illinois Union Insurance Co., No. 15-2913, D...

Mealey's Insurance - Holistic Doctor's Expert Unqualified To Testify, Judge Finds

ALBUQUERQUE, N.M. - A federal judge in New Mexico on Jan. 11 granted the federal government's motion to exclude the testimony of an expert designated to discuss the medical necessity of tests administered by a holistic doctor who is accused of fraudulently billing Medicare and other insurers, after...

Mealey's Insurance - No Coverage Owed For Damages Caused By Sewage Backup, Iowa Panel Says

DES MOINES, Iowa - A trial court did not err in granting an insurer's motion for summary judgment because the insured, seeking coverage for damages caused by a sewage backup in his home, cannot prove that he acted to his detriment when he relied on his insurance agent's representation that coverage...

Mealey's Insurance - No Coverage Owed For Sewage Discharge, Louisiana Appeals Panel Determines

BATON ROUGE, La. - The First Circuit Louisiana Court of Appeal on Jan. 11 affirmed a trial court's ruling that no coverage is afforded under an auto policy for the discharge of raw sewage into a home caused by a pumping system attached to the insured's truck because the policy excludes coverage...

Mealey's Insurance - Judge Affirms Earlier Ruling That Fraud Scheme Netted $2.9M In Losses

NEW YORK - A federal judge in New York, who was ordered by the Second Circuit U.S. Court of Appeals to provide more detailed findings on the intended loss of an insurance fraud scheme that involved the redistribution of drugs originally provided to HIV and AIDS patients, on Jan. 17 affirmed his earlier...

Mealey's Insurance - Judge Says Ruling That Document Was Privileged Was Not Clearly Erroneous

SYRACUSE, N.Y. - A federal judge in New York on Jan. 13 denied a reinsurer's challenge to a magistrate judge's ruling, finding that the magistrate judge's finding that a certain document was privileged was not clearly erroneous (Utica Mutual Insurance Company v. Munich Reinsurance America...

Mealey's Insurance - Plaintiff's Claims Are Preempted By ERISA, Illinois Federal Judge Says

CHICAGO - An Illinois federal judge on Jan. 12 denied a plaintiff's motion to remand after determining that her state law claims arising out of the disclosure of medical records without consent are preempted by the Employment Retirement Income Security Act (Jane Doe v. Aetna Inc., et al., No. 16...

Mealey's Insurance - Panel Certifies 2 Questions To N.Y. High Court In Dispute Arising From 9/11 Attacks

NEW YORK - The Second Circuit U.S. Court of Appeals on Jan. 19 certified two questions to the New York Court of Appeals in a dispute over whether a public benefit corporation has the capacity to challenge as unconstitutional a New York statute that revived claims against public corporations for personal...

Mealey's Insurance - Texas Federal Judge Dismisses Gender Identity Discrimination Claims

DALLAS - A Texas federal judge on Jan. 13 dismissed claims alleging gender identity discrimination under Section 1557 of the Patient Protection and Affordable Care Act (ACA) against an insurer and an employer because the plaintiff failed to cite any controlling precedent that recognizes a cause of action...

Mealey's Insurance - Judge: Insurer Failed To Show That Bifurcation Is Necessary In Bad Faith Suit

COLUMBUS, Ohio - An insurer's "mere assertion" that simultaneously litigating an insurance bad faith claim with other claims in an insurance dispute will require it to prematurely divulge privileged information is not sufficient to require bifurcation and a stay of the bad faith claim,...