LexisNexis® Legal Newsroom
Mealey's Insurance - 2nd Circuit Finds Investors To STOLI Policies Were Victims, Affirms Restitution

NEW YORK - A federal judge in Connecticut did not err when finding that investors in three stranger obtained life insurance (STOLI) policies were victims under the Mandatory Victim Restitution Act (MVRA) and ordering a man who pleaded guilty to insurance fraud to pay $1.9 million in restitution, a Second...

Mealey's Insurance - 6th Circuit Rejects Insurer's Liquidator's Reverse-Preemption Argument In Arbitration Suit

CINCINNATI - In a dispute between an insolvent insurer's liquidator and an administrative services provider over whether work for the insurer should be arbitrated, the Sixth Circuit U.S. Court of Appeals held Feb. 9 that the McCarran-Ferguson Act does not reverse-preempt the enforcement of a contractual...

Mealey's Insurance - Judge: 'Your Work' Exclusion Relieves Insurer From Defending Contractor

MIAMI - An insurance company has no duty to defend a general contractor accused in an underlying suit of construction defects, a federal judge in Florida ruled Feb. 7, holding that the "your work" exclusion to the policy warrants a denial of coverage (Mid-Continent Casualty Company v. JWN Construction...

Mealey's Insurance - Quarry Dust Exposure Coverage Suit Dismissed In Deference To Parallel State Suit

BIRMINGHAM, Ala. - An insurer's suit seeking a declaration that no coverage is owed for underlying claims arising out of exposure to lime quarry dust must be dismissed in deference to the additional insured's suit filed in Alabama state court against the insurer and others because Alabama has...

Mealey's Insurance - Insureds' Complaint Seeking Coverage For Foundation Damages Dismissed

BRIDGEPORT, Conn. - A Connecticut federal judge on Feb. 8 granted an insurer's motion to dismiss its insureds' amended complaint seeking damages as a result of defective concrete used in their home's foundation after determining that the insureds failed to carry their burden of proving that...

Mealey's Insurance - Panel: Auto Insurer Is Liable For Additional Insured's PIP Benefits

TRENTON, N.J. - An auto insurer is liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract, a New Jersey appeals panel affirmed Feb. 8 (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. A-3331-15T4, N.J. Super., App...

Mealey's Insurance - Claimant Failed To Prove Back Pain Was Sole Cause Of Disability

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Feb. 12 affirmed a district court's ruling that a disability insurer's termination of benefits was not arbitrary and capricious because the claimant failed to prove that she suffered solely from a physical disability that precluded her...

Mealey's Insurance - 2nd Circuit Affirms Ruling In Insurer's Favor In Dispute Over Civil Lawsuit

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 8 affirmed a lower federal court's ruling in favor of a general liability insurer in an insured's declaratory judgment lawsuit seeking coverage for an underlying civil lawsuit, finding that the policy limits coverage for mental injury...

Mealey's Insurance - Reinsurer Tells Nebraska Federal Court Promissory Note Is Void, Unenforceable

LINCOLN, Neb. - A reinsurer moved for summary judgment on Feb. 9 in Nebraska federal court, arguing that a promissory note executed pursuant to a reinsurance participation agreement (RPA) is void and unenforceable as a matter of public policy (Applied Underwriters Inc. v. Top's Personnel Inc., No...

Mealey's Insurance - Judge Remands UCL, Other Claims Against Insurer To California Court

LOS ANGELES - After finding that an insurance broker was not improperly joined in an action in which a moving company asserts claims for violation of California's unfair competition law (UCL) and other causes of action in relation to an insurer's refusal to defend it in an underlying lawsuit...

Mealey's Insurance - Court Erred In Finding Faulty Work Can Never Be An 'Occurrence,' Majority Says

DENVER - A majority of the 10th Circuit U.S. Court of Appeals concluded Feb. 13 that a lower federal court erred in finding that a subcontractor's faulty workmanship that caused damage to an insured's own work can never be an "occurrence," reversing and remanding (Black & Veatch...

Mealey's Insurance - Reviewer's Deposition Testimony Sparks California Investigation Into Aetna Claims Process

SACRAMENTO, Calif. - California launched an investigation into Aetna Inc.'s health insurance claims approval and prior authorization process after learning that one of the company's medical reviewers testified in a deposition that he was trained not to review medical records but instead rely...

Mealey's Insurance - Panel Vacates, Remands Denial Of Insurer's Intervention In Forfeiture Proceedings

NEW YORK - The Second Circuit U.S. Court of Appeals on Feb. 13 vacated and remanded a lower federal court's dismissal of an insurer's petition to assert a third-party interest in a criminal forfeiture proceeding but denied the insurer's appeal of the lower court's denial of its request...

Mealey's Insurance - Insurer Has Duty To Defend, Indemnify Negligent Installation Claims, Appeals Panel Finds

HARRISBURG, Pa. - A commercial general liability insurer has a duty to defend and indemnify an insured subcontractor against a contractor's claims of negligent installation, the Pennsylvania Superior Court affirmed Feb. 9 (J.J.D. Urethane Co. v. Westfield Insurance Co., et al., Nos. 1440 EDA 2017...

Mealey's Insurance - Government Did Not Violate Insurers', Reinsurers' 5th Amendment Rights, Panel Says

WASHINGTON, D.C. - The U.S. government's termination of insurers and reinsurers' lawsuits pursuant to a claims settlement agreement between it and Libya and its subsequent legislation and executive order did not constitute a compensable taking under the Fifth Amendment, the Federal Circuit U...

Mealey's Insurance - Judge Allows Insurer To Amend Complaint To Provide Details Of Fraud Scheme

FLINT, Mich. - A statutorily created insurance program that provides insurance coverage for pedestrians struck by vehicles and passengers in automobile accidents can file a second amended complaint that provides additional details of a fraudulent scheme that submitted bills to insurance companies, a...

Mealey's Insurance - Insurer, Reinsurer Submit Briefs On New York High Court Decision's Application

NEW YORK - In a coverage dispute over asbestos litigation costs, a reinsurer and insurer submitted letters on Feb. 9 to the Second Circuit U.S. Court of Appeals concerning how a New York high court ruling applies to a reinsurance contract's per-occurrence liability cap (Global Reinsurance Corporation...

Mealey's Insurance - Federal Judge Enjoins Hot Sauce Maker From Infringing On Trademarks

LOS ANGELES - A California federal judge on Feb. 12 entered a default judgment on claims for violation of California's unfair competition law (UCL) and trademark infringement asserted by a maker of hot sauce and granted a permanent injunction in its favor, enjoining another hot sauce maker from making...

Mealey's Insurance - Judge Allows Breach Of Contract Claim Against Insurer To Proceed To Trial

NEW HAVEN, Conn. - After dismissing all claims based on a "collapse" from faulty concrete against one homeowners insurer for not occurring during its policy period, a Connecticut federal judge on Feb. 13 dismissed all but a breach of contract claim against another insurer because a reasonable...

Mealey's Insurance - Federal Judge Dismisses ERISA Claim For Failure To Provide Discovery

CLARKSBURG, W.Va. - A West Virginia federal judge on Feb. 12 found that a benefits plan and insurer were not obligated to provide a plan participant with documents in relation to his discovery request because they are not the plan administrators, granting them summary judgment on his claim for violation...

Mealey's Insurance - Magistrate Judge: Insurer's Amended Complaint Adequately States RICO Claim

DENVER - A federal magistrate judge in Colorado on Feb. 12 recommended granting an insurance company's motion to file a second amended complaint, finding that it sufficiently alleged that an enterprise exists under the Racketeer Influenced and Corrupt Organizations Act against an insurance adjuster...

Mealey's Insurance - Insurer Asks For Relief From Kaiser Gypsum's Stay To Seek Settlement Reimbursement

CHARLOTTE, N.C. - An insurer of Chapter 11 debtor Hanson Permanente Cement Inc. sought relief from the automatic bankruptcy stay Feb. 13 in North Carolina federal bankruptcy court so it can pursue $2.8 million in reimbursements from other insurers for settlement payments made to asbestos personal injury...

Mealey's Insurance - Rapid-American Denied Protective Order For Insurers' Subpoenas

NEW YORK - Chapter 11 debtor Rapid-American Corp. and asbestos claimants in its bankruptcy case do not have standing to challenge subpoenas served by insurers to asbestos claims-processing facilities seeking evidence of fraud in the asbestos trust system, and besides, the information sought is relevant...

Mealey's Insurance - Panel: Insured Cannot 'Swap Horses Midstream' In Appeal Of No Coverage Ruling

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Feb. 15 rejected an insured's appeal of a lower court's ruling that it was not owed professional liability coverage for an underlying third-party complaint, finding that the insured's primary argument was never raised in the lower...

Mealey's Insurance - Panel Affirms Dismissal Of Remodelers' Suit Against Federal Flood Insurer

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Feb. 14 affirmed a lower court's dismissal of a breach of contract, unjust enrichment, fraudulent inducement and intentional and negligent misrepresentation lawsuit against a federal flood insurer, reiterating that the claims are preempted by...