LexisNexis® Legal Newsroom
Mealey's Insurance - Ohio Supreme Court Denies Insurer's Petition To Review Asbestos Occurrence Ruling

CINCINNATI - The Ohio Supreme Court on Nov. 1 denied an insurer's petition to review an appellate court's ruling that an insured's liability for underlying asbestos claims arose from multiple occurrences (The William Powell Co. v. OneBeacon Insurance Co., et al., No. 2017-0411, Ohio Sup....

Mealey's Insurance - Insurer's Liquidator Did Not Waive Sovereign Immunity, Panel Finds

ATLANTA - An insolvent insurer's liquidator did not waive sovereign immunity under the Insurers Rehabilitation and Liquidation Act as to claims for payment of administrative expenses and attorney fees, a Georgia appeals panel ruled Oct. 31 (State of Georgia, et al. v. International Indemnity Co....

Mealey's Insurance - Insurer Proves No Duty To Defend Absent 'Suit,' But Duty To Indemnify Remains

CHICAGO - Although the absence of a "suit" means that an insurer has no duty to defend a general contractor, an Illinois federal judge ruled Oct. 31 that the insurer failed to identify a limitation or exclusion that would preclude its duty to indemnify (Old Republic Insurance Co. v. Kenny Construction...

Mealey's Insurance - Fungi, Bacteria Exclusion Does Not Bar Insured's Defects, Panel Concludes

ELGIN, Ill. - A fungi and bacteria exclusion does not apply to preclude otherwise covered property damage from construction defects, an Illinois appeals panel affirmed Nov. 2, finding that an insurer had a duty to defend an underlying action (Pekin Insurance Co. v. JB Architecture Group Inc., et al....

Mealey's Insurance - Disability Insurer Erred In Applying Pre-Existing Condition Exclusion

FLINT, Mich. - A Michigan federal judge on Nov. 2 granted judgment in favor of a disability claimant after rejecting the disability insurer's argument that the plan's pre-existing condition exclusion barred coverage for the claimant's disability (Cheryl L. Wallace v. Beaumont Healthcare Employee...

Mealey's Insurance - Virgin Islands Federal Judge Discharges Liquidator Of Insolvent Insurer

ST. THOMAS, Virgin Islands - A Virgin Islands federal judge on Nov. 3 discharged an insurance commissioner as liquidator of an insolvent insurer and ordered $400,000 of unclaimed funds awarded to the Division of Banking and Insurance, Office of the Lieutenant Governor, to cover administrative costs incurred...

Mealey's Insurance - Insurer's Denial Of Coverage Was Not Made In Bad Faith, Ohio Federal Judge Says

TOLEDO, Ohio - An Ohio federal judge on Nov. 6 granted an insurer's motion for summary judgment after determining that the insureds, who seek coverage for a fire at their rental property, breached the policy's cooperation clause and as a result, the insurer's denial of coverage was reasonable...

Mealey's Insurance - Judge: Antagonistic Defenses Do Not Warrant Severing Insurance Fraud Defendants

NEW YORK - A federal judge in New York on Nov. 3 denied motions filed by two doctors seeking to sever their claims from a criminal insurance fraud indictment, finding that the defendants' antagonistic defenses and the possibility of prejudicial spillover did not warrant severance (United States of...

Mealey's Insurance - Bank Argues Affirmative Defenses Against Claims Over Reinsurance Trust Mishandling

COLUMBIA, S.C. - In response to negligence and breach of contract claims against a bank for its role as trustee of a reinsurance trust with an insolvent insurer, the bank asserts affirmative defenses in a Nov. 2 answer and counterclaim in South Carolina federal court (Accident Insurance Company Inc....

Mealey's Insurance - Financial Services Company Says It Has Right To Recover $26M Award From Reinsurers

WASHINGTON, D.C. - In a breach of contract lawsuit, a financial services company argues in a Nov. 3 opposition brief to the District of Columbia federal court that it has a right to recover a $26 million arbitration award directly from reinsurers (Vantage Commodities Financial Services I, LLC v. Assured...

Mealey's Insurance - Farming Co-Op Argues Benefits Of Paying To Members Premium Rebates In Reinsurance Years

CINCINNATI - Explaining the financial benefits of an agricultural cooperative to members, a farming cooperative argues in a Nov. 6 reply brief to the Sixth Circuit U.S. Court of Appeals that it did not lose status as an entity approved to make premium-rebate payments for 2005, 2006 or 2007 reinsurance...

Mealey's Insurance - California Panel: No Coverage Owed For Suits Alleging Liability For Opioid Epidemic

SANTA ANA, Calif. - A California appeals panel on Nov. 6 affirmed a lower court's finding that commercial general liability insurers have no duty to defend pharmaceutical manufacturers and distributors against two underling lawsuits alleging that they engaged in a fraudulent scheme to promote the...

Mealey's Insurance - Evidence Supported Convictions For Fraud, Kickback Charges, 5th Circuit Says

NEW ORLEANS - A Fifth Circuit U.S. Court of Appeals panel on Nov. 7 upheld convictions of a man and his son who were accused of health care fraud and paying kickbacks to obtain business for their partial hospitalization programs (PHPs), ruling that evidence presented by the government was sufficient...

Mealey's Insurance - Texas Panel: Insurer Was Properly Granted Judgment On Bad Faith Claims

SAN ANTONIO - The Fourth District Texas Court of Appeals on Nov. 8 affirmed a trial court's grant of summary judgment to an insurer on the insured's common-law bad faith claim after determining that the insured failed to offer evidence of an extreme act that caused an injury that was independent...

Mealey's Insurance - Pennsylvania Panel Upholds Woman's Conviction, Sentence For Insurance Fraud

PHILADELPHIA - A Pennsylvania appeals panel on Nov. 7 overruled a woman's argument that evidence presented during her insurance fraud trial did not support her conviction, holding that the state sufficiently showed an intent to defraud through her false statements to a state trooper during the investigation...

Mealey's Insurance - S.D. High Court: Professional Services Exclusion Bars Coverage For Surveying Error

PIERRE, S.D. - A designated professional services endorsement excludes all potential insurance coverage for any property damage caused by a land-surveying error, the South Dakota Supreme Court ruled Nov. 8, finding that a trial judge erred in granting summary judgment to a project architect (Western...

Mealey's Insurance - Fabricated Authorization Letter Constituted Fraud, Pennsylvania Appeals Court Finds

PITTSBURGH - A woman was properly convicted for insurance fraud, forgery and theft of property, a Pennsylvania appeals panel ruled Nov. 7, finding that the woman's presentation of a fabricated authorization letter for dental work constituted an attempt to defraud her insurance company (Commonwealth...

Mealey's Insurance - Judge: Policy Does Not Exclude Contractors' Work As Home Builder, Not Roofer

OKLAHOMA CITY - An insurance company must provide coverage for two contractors under two commercial general liability policies because the language in the policies does not exclude coverage for their work as home builders rather than as roofers, a federal judge in Oklahoma ruled Nov. 9 in denying the...

Mealey's Insurance - Insurers Oppose Discovery Extension In Fraudulent Transfer Suit Against Reinsurer

ATLANTA - Insurers in a Nov. 9 brief oppose a request from a reinsurer and its shareholders to extend the discovery period and expert report deadlines in a dispute in a Georgia federal court over allegedly fraudulent transfers of reinsurance funds (Canal Insurance Co., et al. v. Golden Isles Reinsurance...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Denying Property Damage Claim, Panel Says

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Nov. 15 affirmed a district court's ruling in favor of an insurer in a property damage coverage dispute after finding that the evidence establishes that the insurer did not act in bad faith because it adequately investigated the insured's...

Mealey's Insurance - Termination Of LTD Benefits Supported By Medical Evidence, Appeals Panel Says

PHILADELPHIA - A district court did not err in finding that a disability insurer's termination of long-term disability benefits under the plan's any-occupation standard was not arbitrary and capricious because the termination is supported by substantial evidence, the Third Circuit U.S. Court...

Mealey's Insurance - 1st Circuit: Insured Not Entitled To Separate Counsel To Defend Against Suit

BOSTON - The First Circuit U.S. Court of Appeals on Nov. 15 found that the presence of an embezzlement counterclaim in a dispute between an employer insured and its former employee fails to generate a conflict of interest that entitles the insured to separate counsel to defend against an underlying wrongful...

Mealey's Insurance - Questions Of Fact Exist As To Whether Insurer Acted In Bad Faith In Handling Claim

SEATTLE - A Washington federal judge on Nov. 14 denied an insurer's motion to dismiss a bad faith claim alleged against an insurer by an insured in an auto coverage dispute suit after determining that questions of fact exists as to whether the insurer acted reasonably in handling the insured's...

Mealey's Insurance - Panel Reverses Summary Judgment On Insurer's Duty To Defend Defect Claims

SAN DIEGO - A California appeals panel on Nov. 14 reversed an entry of summary judgment to an insurer on its duty to defend construction defect claims under subcontractors' policies but affirmed summary judgment to a second insurer, finding that it has no duty to defend (McMillin Management Services...

Mealey's Insurance - Known Defects Relieve Insurer Of Duty To Pay For Repairs, Panel Finds

LOS ANGELES - A homeowner "who is aware, long before a rainstorm occurs and causes damage, of possible leakage" caused by construction defects cannot reasonably expect an insurer to pay for repairs on the theory that rainwater, and not the defects, caused the damage, a California appeals panel...