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Mealey's Insurance - Judge Grants Reinsured Insurer $940,433 In Prejudgment Interest

ALBANY, N.Y. - A federal judge in New York issued a summary order on July 14 ordering a reinsurer to pay its reinsured nearly $1 million in prejudgment interest on a nearly $6 million principal award regarding an asbestos-related settlement agreement between the reinsured and its insured (Utica Mutual...

Mealey's Insurance - Notice-Prejudice Rule Applies In Contamination Coverage Suit, Panel Says

DENVER - A trial court erred in finding that no coverage is afforded for environmental contamination cleanup costs because the trial court failed to determine if the insurer was prejudiced by the insured's late notice of the claim, the Colorado Court of Appeals said July 14 (MarkWest Energy Partners...

Mealey's Insurance - Judge Declines To Find Policy Voidable For Not Complying With N.J. Rule Of Court

NEWARK, N.J. - A New Jersey federal judge on July 14 rejected an attorney insured's argument that a professional liability insurance policy is voidable for failing to comply with the requirements of New Jersey Rule of Court 1:21-1B(a)(4), denying the insured's motion for summary judgment in a...

Mealey's Insurance - 8th Circuit: Nondisclosure Of Medical Negligence Suit Was Equivalent Of False Assertion

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on July 19 affirmed a lower federal court's finding that a professional liability insurer was entitled to rescind its policy in a dispute over coverage for two underlying medical negligence claims against a physician specializing in obstetrics...

Mealey's Insurance - 10th Circuit Says It Does Not Have Jurisdiction Over Appeal In Appraisal Dispute

DENVER - The 10th Circuit U.S. Court of Appeals on July 19 held that it does not have appellate jurisdiction over a federal district court's nonfinal order denying confirmation of a $208,445.57 appraisal award in a hailstorm damage coverage dispute (KCOM Inc. v. Employers Mutual Casualty Co., No...

Mealey's Insurance - Judge Allows Bad Faith Claims In Suit Against Insurer Over Faulty Windows Settlements

TAMPA, Fla. - Window and sliding-glass-door manufacturers may proceed on their "bad-faith failure to settle" and "negligent failure to settle" claims against their insurer for failing to indemnify them for underlying settlements arising out of alleged defective windows, a Florida...

Mealey's Insurance - Insured's Faulty Work Is Not Covered 'Property Damage,' Panel Upholds

TRENTON, N.J. - Allegations of an insured's negligent work that caused a collapse do not constitute covered "property damage" under commercial general liability insurance policies, a New Jersey appeals panel affirmed July 15 (New Jersey-American Water Co., Inc. v. Watchung Square Associates...

Mealey's Insurance - Illinois Federal Judge Adopts Additional Findings; Judgment Properly Entered For Insurer

CHICAGO - An Illinois federal judge on July 15 agreed to adopt a disability claimant's proposed additional findings; however, the judge said the judgment in favor of a disability insurer will stand because the claimant still did not prove that he was continuously disabled under the policy at issue...

Mealey's Insurance - Judge Ends Reinsurer's Mooted Motion To Amend Its Pleadings

SYRACUSE, N.Y. - A federal judge in New York on July 18 terminated as moot a reinsurer's motion to amend its pleadings to withdraw its Bellefonte-based defenses and claims (Munich Reinsurance America Inc. v. Utica Mutual Insurance Company, No. 13-cv-00743, N.D. N.Y.).

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...