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Special Deputy Receiver Asks Court To OK Settlement Of Home Fire Damage Claim

AUSTIN, Texas - The special deputy receiver (SDR) of an insolvent insurer asked a Texas court on July 15 to approve a settlement between a homeowner and the receivership estate of an insolvent insurer of the homeowner's fire damage claim (The State of Texas and the Texas Department of Insurance v...

Mealey's Insurance - Federal Judge Partly Grants Cosby's Motion To Stay Insurer's Coverage Dispute

LOS ANGELES - A California federal judge on July 18 granted William H. Cosby Jr.'s motion to stay a homeowners and excess insurer's coverage dispute pending resolution of an underlying lawsuit brought by model, actress and TV producer Janice Dickinson but denied the motion to the extent Cosby...

Mealey's Insurance - Jury Finds Nurse Guilty For Role In $8M Health Care Fraud Scheme

HOUSTON - A nurse at a Texas home health care services company was found guilty on three counts of health care fraud by a unanimous jury in the U.S. District Court for the Western District of Texas on July 19 for her role in an $8 million scheme that involved submitting false and fraudulent claims to...

Mealey's Insurance - Judge: 'Your Work' Exclusion Bars Arbitration Award From Insured's Faulty Work

HOUSTON - An insurance policy's "your work" exclusion precludes damages awarded in arbitration to homeowners because the insured contractor's work caused the damages, which did not include damages to the pool or work performed by other subcontractors, a Texas federal judge ruled July...

Mealey's Insurance - Judge: District Court Lacks Subject Matter Jurisdiction Over Bad Faith Suit

NEWARK, N.J. - A federal judge in New Jersey on July 19 granted an insurer's motion to dismiss in an insurance breach of contract and bad faith lawsuit, ruling that an insured failed to show that the district court has subject matter jurisdiction over the action (Florence Hanson v. Allstate New Jersey...

Mealey's Insurance - Judge: Insurer Did Not Act In Bad Faith In Denying Claim For Stolen Skid Loader

SALT LAKE CITY - An insurer did not act in bad faith in denying coverage for an allegedly stolen skid loader because ample evidence exists to support the insurer's denial of the claim, a federal judge in Utah ruled July 18 in an insurance bad faith and breach of contract lawsuit (Naser Awadh, et...

Mealey's Insurance - Insurer's Termination Of Benefits Was Not Arbitrary And Capricious, Judge Says

MIAMI - A disability insurer's decision to terminate a claimant's long-term disability benefits was not arbitrary and capricious because the insurer reasonably concluded that the claimant was not precluded from working in "any occupation," a Florida federal judge said July 19 (Armando...

Mealey's Insurance - 10th Circuit: Causation Testimony Reliable For Insurance Collision Suit

DENVER - A trial court properly allowed expert testimony on causation in an insurance coverage dispute over injuries suffered in an auto collision, the 10th Circuit U.S. Court of Appeals held July 19, affirming that the insured presented evidence that a reasonable jury could find that his claim for benefits...

Mealey's Insurance - 5th Circuit Rejects Argument That Tornado Loss Is 'Nothing' For Coverage Purposes

NEW ORLEANS - The Fifth Circuit U.S. Court of Appeals on July 21 rejected an insurer's argument that its owes nothing to the University of Southern Mississippi Alumni Association (USMAA) for tornado damage to a building it leases from the University of Southern Mississippi (USM) because others paid...

Mealey's Insurance - Coverage Barred By CGL Policy's Professional Services Exclusion, Panel Affirms

TRENTON, N.J. - A New Jersey panel affirmed July 20 that commercial general liability coverage for an underlying negligence lawsuit against an engineering firm insured is barred by the policy's professional services exclusion (EIC Group LLC v. The Travelers Indemnity Company of America, No. A-2590...

Mealey's Insurance - Judge Rejects Claim That Insured Failed To Timely Submit Paperwork To Port Plan

SAN FRANCISCO - Dismissal of a life insurance policy beneficiary's breach of contract and bad faith lawsuit against an insurer is not proper because the beneficiary has shown that his deceased wife timely completed all necessary paperwork and submitted to her employer as administrator of the policy...

Mealey's Insurance - Insured Won't Present Evidence, Testimony In Making Bad Faith Claim, Judge Rules

HATTIESBURG, Miss. - A federal judge in Mississippi on July 18 granted three motions in limine filed by an insurer in an insurance breach of contract and bad faith lawsuit, precluding an insured from presenting evidence, damages testimony and other testimony to show that the insurer acted in bad faith...

Mealey's Insurance - Panel: No Defense Owed For Additional Insured's Alleged Intentional Bad Acts

CHICAGO - An insurer had no duty to defend an additional insured for construction defects in condominium units because nothing accidental was alleged, an Illinois appeals panel affirmed July 20, finding that the allegations include the additional insured's intentional bad acts or awareness of faulty...

Mealey's Insurance - Insured Asks 10th Circuit To Certify Question Of Law To New Mexico High Court

DENVER - Because no New Mexico court has addressed the application of the "owned or occupied" exclusion in the context of environmental contamination to sovereign property, the 10th Circuit U.S. Court of Appeals should certify a question regarding the exclusion's application to the New...

Mealey's Insurance - State Farm Awarded Judgment After Judge Finds Man Misrepresented Residency

ALLENTOWN, Pa. - State Farm Fire and Casualty Co.'s motion for judgment was granted July 21 by a federal judge in Pennsylvania who found that the insurer could deny a man's claim under his automobile policy because he misrepresented that he was a resident of New York rather than Pennsylvania...

Mealey's Insurance - Judge Says Expert Did Not Offer Testimony On Defect In Insurer's Subrogation Suit

SOUTH BEND, Ind. - An expert did not provide any testimony as to a manufacturing defect to support an insured's motion for interlocutory review, an Indiana federal judge ruled July 19 in an insurer's subrogation lawsuit on claims for design defect and failure to adequately warn (The Cincinnati...

Mealey's Insurance - Judge: Faulty Workmanship Bars Insurance Claim For Damages From Collapse

ALEXANDRIA, Va. - A faulty workmanship exclusion precludes coverage for collapse damages caused by an insured's actions related to the excavation of a basement coupled with the failure to install underpinning to secure the building's foundation, a Virginia federal judge ruled July 21, finding...

Mealey's Insurance - South Dakota Majority Reverses No Coverage Ruling For Cattle Killed In Winter Storm

PIERRE, S.D. - A majority of the South Dakota Supreme Court on July 20 reversed a lower court's ruling that an insurer has no duty to indemnify its insureds for their loss of 93 cattle during winter storm Atlas, finding that the insurance policy's drowning provision is ambiguous (Richard Papousek...

Mealey's Insurance - Judge: Insurer Fails To Show All Claims Barred By Contractual Liability Exclusion

SAN JOSE, Calif. - A California federal judge on July 22 held that an insurer has failed to satisfy its burden of establishing that all claims alleged in underlying class actions are excluded from coverage under a "products/completed operations liability and professional liability" insurance...

Mealey's Insurance - Insureds' Water Damage Is Subject To A 'Concurrent Cause' Exclusion, Panel Says

FRANKFORT, Ky. - The "Back-Up of Sewers and Drains" coverage provided under an insurance policy is subject to a "concurrent cause" exclusion, a Kentucky appeals panel ruled July 22, affirming summary judgment to an insurer that insureds did not suffer a covered loss from water damage...

Mealey's Insurance - Judge OKs Return Of Reserve Funds Under Assumption Reinsurance Agreement

CHICAGO - An Illinois judge on July 22 approved the return of nearly $4 million Canadian to the Lumbermens Mutual Casualty Co.'s liquidation estate that was held by a Canadian insurer that had been paying certain claims and obligation of Lumbermens' in Canada (People of the State of Illinois...

Mealey's Insurance - Judge: No Coverage For Insured's Sales Commission Dispute With Former Employee

DULUTH, Minn. - A Minnesota federal judge entered judgment in favor of an insurer on July 25, three days after finding that the insurer's duty to defend or indemnify a food marketing and distribution company insured was never triggered because the insured failed to notify the insurer "as soon...

Mealey's Insurance - Judge: DirecTV's Television Programming Is Not 'Data' Under 2 Policy Exclusions

BALTIMORE - A Maryland federal judge ruled July 22 that an insurer has a duty to defend its insured against an underlying lawsuit brought by DirecTV LLC, rejecting the insurer's argument that coverage is barred by two "unauthorized access" policy exclusions (Ellicott City Cable LLC, et...

Mealey's Insurance - Diagnostic Imaging Company To Pay $3.5M To Settle False Claims Act Suit

DALLAS - A Texas diagnostic imaging services company agreed to pay $3.5 million to resolve allegations that it violated the False Claims Act (FCA) when improperly billing Medicare and Medicaid for services that were provided without proper medical supervision, the U.S. Attorney's Office for the Northern...

Mealey's Insurance - Company Alleging Ownership Of Insurer Moves To Intervene In Reinsurance Dispute

NEW YORK - A company claiming to be the owner of an insurer being sued by Certain Underwriting Members at Lloyd's, London over an arbitration award moved to intervene in the proceedings in a federal court in New York on July 22 (Certain Underwriting Members at Lloyd's, London Subscribing to Treaty...