LexisNexis® Legal Newsroom
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...

Mealey's Insurance - 'Your Product' Exclusion Bars Coverage For Costs To Repair Insured's Units

MINNEAPOLIS - Costs to repair and replace an insured's insulating glass units (IGUs) are precluded by the "your product" exclusion, a Minnesota federal judge ruled June 18, granting and denying in part summary judgment to an insurer (National Union Fire Insurance Company of Pittsburgh,...

Mealey's Insurance - Native Alaskan Village Sues Contractor Over Work Done On Hydroelectric Plant

ANCHORAGE, Alaska - A Native Alaskan village and its council say in a June 18 federal court lawsuit that a construction company owes the village $450,000 for shoddy work done and then left unrepaired on the village's hydroelectric plant (Native Village of Chignik Lagoon v. Orion Marine Contractors...

Mealey's Insurance - Judge Finds Service On Niece Of Doctor Accused Of Fraud Sufficient

ANN ARBOR, Mich. - A federal judge in Michigan on June 19 denied a doctor's motion to dismiss a lawsuit brought by Allstate Insurance Co. accusing him and his practice of submitting fraudulent claims, finding that service of the complaint to his niece was sufficient to establish that he lived there...

Mealey's Insurance - LTD Claim Remanded; Administrator Must Consider Effects Of Medications

ST. LOUIS - A Missouri federal judge on June 19 remanded a long-term disability (LTD) claim and instructed the claims administrator to evaluate if the side effects of the claimant's prescribed medications affected the claimant's ability to perform any occupation (Lisa Conner v. Ascension Health...

Mealey's Insurance - Faulty Work Exclusion Does Not Apply To Insured's Loss, Magistrate Judge Says

BOISE, Idaho - A faulty workmanship exclusion does not preclude coverage for an insured's repair costs, an Idaho federal magistrate judge ruled June 18, granting summary judgment to an insured on its breach of contract claim and awarding it $177,431.99 (Engineered Structures Inc. v. Travelers Property...

Mealey's Insurance - Coverage May Exist; Policy Covers Collapse Caused By Hidden Decay, Judge Says

BRIDGEPORT, Conn. - An insurer's motion to dismiss a complaint filed by insureds seeking coverage for their cracking foundation walls caused by a chemical reaction in the concrete must be denied because a possibility for coverage exists as the policy at issue provides coverage for collapse caused...