LexisNexis® Legal Newsroom
Mealey's Insurance - Procedural Violation Does Not Justify Award Of Disability Benefits, 9th Circuit Says

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on April 4 vacated and remanded a district court's ruling in a disability benefits suit after determining that the disability insurer's failure to comply with procedural requirements does not, on its own, justify an award of benefits in...

Mealey's Insurance - Federal Judge Denies Reconsideration Of Ruling In Contamination Dispute

TRENTON, N.J. - A New Jersey federal judge on April 5 denied motions for reconsideration filed by two insurers and their insured after determining that the court did not commit a clear error of law in interpreting the applicability of the policies' per-occurrence limits and absolute pollution exclusion...

Mealey's Insurance - 11th Circuit Finds Group Could Have Investigated Life Expectancy Representations

ATLANTA - The 11th Circuit U.S. Court of Appeals on April 6 affirmed a district court's ruling that claims asserted by an entity, who alleged that agents made misrepresentations that fraudulently induced it into purchasing existing life insurance policies, were barred by a four-year statute of limitations...

Mealey's Insurance - Excess Insurer Owes No Coverage For Costs Incurred By Well Blowout, Judge Says

AUSTIN, Texas - A Texas federal judge on April 6 granted an excess liability insurer's motion for summary judgment after determining that the excess insurer has no duty to contribute to an insured's costs incurred as the result of an oil well blowout (Starnet Insurance Co., et al., v. Federal...

Mealey's Insurance - Justice Wants Feedback Regarding Call For Creation Of Ancillary Receivership

NEW YORK - A New York justice on April 6 issued an order to show cause, asking for input regarding the request by the head of the state's insurance regulatory body for an order creating an ancillary receivership of an insolvent California insurer (In the Matter of the Application of Maria T. Vullo...

Mealey's Insurance - No Coverage For False Advertising Claims Against Insured, 6th Circuit Affirms

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on April 11 affirmed a lower federal court's ruling that a business liability policy does not provide coverage for false advertising claims brought against an eye health supplement maker insured by a competitor, finding that the insured failed...

Mealey's Insurance - 3rd Circuit: Insurers Have No Duty To Defend, Indemnify Faulty Workmanship Claims

PHILADELPHIA - Commercial general liability insurers have no duty to defend or indemnify an insured in a shoddy workmanship lawsuit filed by the former owner of an apartment complex, the Third Circuit U.S. Court of Appeals ruled April 11, affirming summary judgment for the insurers (Mega Construction...

Mealey's Insurance - Insurer Estopped From Use Of Subcontractors Exception Based On Improper Info

PHOENIX - An insurer is estopped from asserting a coverage defense to a homeowner's breach of contract and bad faith lawsuit based on the subcontractors exclusion because the information relevant to that defense was improperly disclosed by an insured contractor's counsel, a visiting Alaska federal...

Mealey's Insurance - Judge: Fact Issues Remain On If Covered Peril Caused Insured's Continuous Damage

TACOMA, Wash. - Questions of fact exist on whether a covered peril caused continuous damage to a condominium association's common areas and buildings under several "all-risk" insurance policies, a Washington federal judge ruled April 10, denying summary judgment to the association and insurers...

Mealey's Insurance - Insurer Says Its Payment Of Asbestos Claims Was Reasonable

SYRACUSE, N.Y. - An insurer told a federal court in New York on April 7 that its payments to its insured were reasonable and that a reinsurer's challenge to those payments is contrary to the follow-the-fortunes doctrine (Utica Mutual Insurance Company v. Century Indemnity Company, No. 13-cv-00995...

Mealey's Insurance - Judge: Fact Issues Exist On If Independent Counsel Is Required For Insured's Defense

CHICAGO - In an insured's breach of contract and bad faith lawsuit against its commercial general liability insurer, an Illinois federal judge ruled April 11 that the parties failed to provide evidence to clear up genuine issues of material fact regarding whether independent counsel should be appointed...

Mealey's Insurance - Judge Finds Bad Faith Claim Insufficient In Auto Insurance Dispute

PHILADELPHIA - An insured has failed to plead whether his insurance bad faith claim is a common-law contract law claim or a statutory claim, a federal judge in Pennsylvania ruled April 10 in dismissing the bad faith claim with leave to amend (Jeremy Z. Mittman v. Nationwide Affinity Insurance Co., No...

Mealey's Insurance - Bad Faith Claim Against Insurer Is Not Supported, Federal Magistrate Judge Says

HARRISBURG, Pa. - A review of the communications between an insurer and its insured's counsel after the insurer was notified that the insured was pursuing a claim for underinsured motorist benefits does not support a claim of bad faith against the insurer, a Pennsylvania federal magistrate judge...

Mealey's Insurance - Federal Judge Remands Claim To Consider If Claimant Was Disabled From Any Occupation

LOS ANGELES - A California federal judge on April 12 remanded a disability claim to the plan administrator to determine whether the disability claimant was disabled under the plan's "any occupation" standard (Bertha Campos v. Reliance Standard Life Insurance Co., No. 15-8304, C.D. Calif...

Mealey's Insurance - Fact Issues Exist On When Damage Manifested Under Insurance Policies, Judge Says

TRENTON, N.J. - Factual issues remain on whether damage caused by a window subcontractor manifested before or after an insurer's policy periods, a New Jersey federal judge ruled April 12, denying summary judgment to two insurers in a contribution lawsuit over defense costs incurred by the one insurer...

Mealey's Insurance - Disability Claimant Owed Benefits Under Own-Occupation Standard, Federal Judge Says

SAN FRANCISCO - Because a disability claimant submitted substantial evidence proving that she was disabled from her own occupation, the claimant is owed retroactive disability benefits for the 24-month period of disability under the own-occupation standard, a California federal judge said April 11 (Cathleen...

Mealey's Insurance - Judge Rules On Insurers' Late Notice, Suits Limitations Defense In Coverage Dispute

TACOMA, Wash. - In a coverage dispute between a condominium association and several "all-risk" insurers, a Washington federal judge on April 12 granted in part and denied in part summary judgment on two insurers' late notice defense but granted summary judgment entirely on their suit limitations...

Mealey's Insurance - Disability Claimant Failed To Request Copy Of Plan Description, Judge Says

MILWAUKEE - Because a disability claimant did not specifically request a copy of a disability plan's summary plan description (SPD) when inquiring about the availability of disability benefits, the plan administrator did not violate the requirements of Employee Retirement Income Security Act, a Wisconsin...

Mealey's Insurance - New York Justice Rules Against Insurers In Dispute Over Bear Stearns' Settlement

NEW YORK - A New York justice on April 17 ruled against insurers in a lawsuit seeking indemnification from them for claims stemming from Bear Stearns' settlement of Securities and Exchange Commission and New York Stock Exchange (NYSE) regulatory proceedings and private litigation over claims that...

Mealey's Insurance - Insurer Did Not Act In Bad Faith In Storm Damage Dispute, 10th Circuit Affirms

DENVER - The 10th Circuit U.S. Court of Appeals on April 19 rejected insureds' argument that an insurer acted in bad faith by unreasonably delaying an appraisal and by failing to conduct an adequate claim investigation, affirming a lower federal court's ruling in favor of the insurer (Hayes Family...

Mealey's Insurance - Insured's Bad Faith Suit Barred By Statute Of Limitations, Judge Rules

TAMPA, Fla - An insured's bad faith claim is based on his insurer's alleged breach of its fiduciary duty to him and is, thus, subject to a four-year statute of limitations, a federal judge in Florida ruled April 18 in granting the insurer' motion to dismiss (Waldermar Baranowski v. GEICO...

Mealey's Insurance - Pennsylvania Court Says Continuous Trigger Applies In Environmental Dispute

HARRISBURG, Pa. - The Pennsylvania Commonwealth Court on April 21 adopted an insured's application of a continuous trigger of coverage rather than the insurer's application of a first manifestation trigger of coverage in an environmental contamination coverage dispute after determining that environmental...

Mealey's Insurance - Panel: Professional Liability Insurer Is Equitably Estopped From Denying Coverage

DENVER - The 10th Circuit U.S. Court of Appeals held April 18 that an insurer is estopped from denying coverage under a professional liability insurance policy for an underlying arbitration brought against an investment advisor insured, affirming a lower court's $931,859.59 judgment in favor of the...

Mealey's Insurance - Judge: Insured Failed To Show Reconsideration In Bad Faith Suit Warranted

INDIANAPOLIS - An insured failed to show that any manifest error of law or fact exists that would require amendment of three previous orders in an insurance bad faith lawsuit, a federal judge in Indiana ruled April 18 in denying the insured's motion for reconsideration of three earlier rulings in...

Mealey's Insurance - Failure To Pay Judgment Constitutes Bad Faith, Federal Judge Determines

SEATTLE - A Washington federal judge on April 19 granted an insured's motion for summary judgment after determining that the insured presented sufficient evidence that the insurer's failure to pay a judgment entered in favor of the insured constitutes bad faith (Arika Prince v. State Farm Mutual...