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Mealey's Insurance - Dismissal Sought In Reinsurers' RICO, Breach Of Contract Dispute Over Alleged Scheme

EL PASO, Texas - In a lawsuit alleging a scheme to take control over a dealership and to decline selling vehicle-protection products that are reinsured by the reinsurers, defendants argue in their Oct. 11 reply brief to a Texas federal court for dismissal in favor of a state probate court action (Richard...

Mealey's Insurance - Woman Sentenced To 1 Year In Prison For Health Care Fraud

NEW ORLEANS - A federal judge in Louisiana on Oct. 13 sentenced a woman to one year and one day in prison and ordered her to pay $536,724 in restitution after she pleaded guilty to one count of health care fraud for misappropriating Medicaid funds received by a pediatric clinic where she worked for her...

Mealey's Insurance - Auto Insurer Will Not Be Prejudiced If Bad Faith Claim Is Not Severed

SCRANTON, Pa. - An auto insurer failed to prove that it will be prejudiced if an insured's bad faith claim is tried at the same time as the insured's breach of contract claim, a Pennsylvania federal judge said Oct. 11 in denying the insurer's motion to sever and stay the claim (Sandra Mulgrew...

Mealey's Insurance - Panel Reverses Ruling As To Excess Coverage In Dispute Arising From Forest Fire

WAUSAU, Wis. - A Wisconsin appeals panel on Oct. 11 affirmed a lower court's ruling that a commercial general liability insurance policy's $2 million aggregate limit applied in a coverage dispute over a forest fire that burned thousands of acres of land, but reversed and remanded for a factual...

Mealey's Insurance - Judge Reverses Ruling On Yield Crop Exclusion For Reinsurance With FCIC

DENVER - A division of the U.S. Department of Agriculture improperly determined that a yield crop exclusion was not immediately available to farmers upon the passage of a farm bill for purposes of calculation in reinsurance coverage, a Colorado federal judge ruled Oct. 13 (Glenn Ausmus, et al. v. Sonny...

Mealey's Insurance - Government Can Present Evidence On Other Fires, Insurance Claims, Judge Says

RICHMOND, Va. - The federal government can present evidence regarding allegations that a woman accused of conspiracy to commit wire fraud, use of fire to commit a federal felony and making false statements was involved in other fires that resulted in her filing insurance claims, a federal judge in Virginia...

Mealey's Insurance - Insurer's Lawsuit Accusing Law Firm of Fraud Dismissed By Judge

NEWARK, N.J. - A federal judge in New Jersey on Oct. 16 granted a motion to dismiss filed by estates named as defendants in an insurer's declaratory judgment lawsuit accusing a law firm of making misrepresentations on its Lawyers Professional Liability Policy application, finding that an underlying...

Mealey's Insurance - Bad Faith Claim Dismissed Without Prejudice To Refile After Auto Claim Is Resolved

JACKSONVILLE, Fla. - After determining that a bad faith claim is premature, a Florida federal judge on Oct. 13 granted an insurer's motion to dismiss the bad faith claim without prejudice to the insured to refile the claim after the insured's claim for uninsured motorist benefits is resolved...

Mealey's Insurance - Insurer Opposes Judgment Motion In Hotel's Data Breach Coverage Suit

ORLANDO, Fla. - In an Oct. 12 brief in Florida federal court, a commercial general liability insurer opposes a motion for judgment as to its duty to defend in a data breach coverage dispute, arguing that the hotel that experienced the breach, which is claiming resulting losses, is not an insured under...

Mealey's Insurance - No Coverage Owed For Damage To Oil, Gas Well, Texas Federal Judge Says

SAN ANTONIO - No coverage is owed to an insured seeking damages for the loss of an oil and gas well damaged while the insured was preparing the well for production because the claims alleged against the insured are precluded by the primary policy's "damage to property" exclusion and the...

Mealey's Insurance - Federal Judge Dismisses Professional Liability Insurer's Declaratory Judgment Suit

NEWARK, N.J. - A New Jersey federal judge on Oct. 17 dismissed a professional liability insurer's lawsuit disputing coverage for an underlying legal malpractice action against its law firm insured, finding that the underlying state court provides an adequate forum to resolve the dispute involving...

Mealey's Insurance - Department Of Labor Proposes To Delay Change For Disability Plan Claims Procedures

WASHINGTON, D.C. - The U.S. Department of Labor's Employee Benefits Security Administration on Oct. 12 published in the Federal Register a proposal to delay the applicability of a final rule amending the claims procedure requirements that are applicable to employee disability benefit plans governed...

Mealey's Insurance - SEC Investigation Does Not Trigger Coverage For $3M In Legal Costs, Panel Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on Oct. 17 affirmed a lower federal court's entry of summary judgment in favor of an insurer, rejecting the insured's argument that an investigation by the U.S. Securities and Exchange Commission is a claim under its directors and officers liability...

Mealey's Insurance - Reinsurance Facultative Certificates Cover Defense Costs In Excess Of Cap

HARRISBURG, Pa. - Reinsurance facultative certificates covered defense expenses in excess of a liability cap, a Pennsylvania appeals panel ruled Oct. 17, affirming that insurers were entitled to interest on certain proofs of loss for asbestos claims issued before 2013 (Century Indemnity Co. v. OneBeacon...

Mealey's Insurance - Panel Affirms Denial Of Disability Benefits Under Insolvent Insurer's Policy

SALT LAKE CITY - An accident did not cause a worker's degenerative arthritis, an Utah appeals panel ruled Oct. 13, declining to disturb the denial of the worker's permanent partial disability (PPD) compensation under an insolvent insurer's policy (Raymond M. Snyder v. Labor Commission, et...

Mealey's Insurance - Insured's Breach Of Contract, Bad Faith Suit Remanded To Pennsylvania State Court

PHILADELPHIA - A Pennsylvania federal judge on Oct. 12 remanded an insured's suit alleging claims for breach of contract and bad faith against an auto insurer and the insured's insurance agent after determining that the agent was not fraudulently joined to defeat jurisdiction (Melinda Bradley...

Mealey's Insurance - Disability Insurer Erred In Determining Claimant's Date Of Disability, Panel Says

ATLANTA - A disability insurer acted arbitrarily and capriciously in determining the date of a claimant's disability, the 10th Circuit U.S. Court of Appeals said Oct. 17 in reversing a district court's judgment in favor of the insurer (Greggory B. Owings v. United Of Omaha Life Insurance Co....

Mealey's Insurance - Florida Panel Reverses Hurricane Wilma Coverage Suit For 2nd Time

MIAMI - After previously reversing a lower court's ruling in favor of a homeowner in a Hurricane Wilma coverage dispute, a Florida appeals panel on Oct. 18 reversed the lower court's ruling on remand in favor of the insurer, finding that a genuine issue of material fact remains regarding whether...

Mealey's Insurance - Bad Faith Suit Over Property Insurance Claim Remanded To State Court

OXFORD, Miss. - Remand of an insurance breach of contract and bad faith lawsuit to state court is proper because an insured has shown that the amount in controversy in the action will not exceed statutory limits, a federal judge in Mississippi ruled Oct. 17 in granting the insured's motion to remand...

Mealey's Insurance - Dismissal Of Bad Faith Claim In Auto Coverage Dispute Is Appropriate, Judge Says

ORLANDO, Fla. - A Florida federal judge on Oct. 17 dismissed, rather than severing or staying, an insured's bad faith counterclaim against an auto insurer because under Florida law, a bad faith claim cannot be alleged until a determination of the insured's damages has been made (Owners Insurance...