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Mealey's Insurance - Federal Court Clerk Certifies Alleged Reinsurer Is In Default

NEW YORK - The clerk of a federal court in New York on March 16 issued a certificate of default against a holding company that is allegedly responsible for obligations under certain facultative reinsurance contracts (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator...

Mealey's Insurance - Michigan Judge Reopens Rehabilitation Proceeding After Closing It In Error

MASON, Mich. - A Michigan judge on March 15 granted a rehabilitator's petition and set aside an earlier final order closing a rehabilitation in error and ordered that the rehabilitation proceeding be reopened (Patrick McPharlin, Director of the Department of Insurance and Financial Services v. Affirmative...

Mealey's Insurance - Judge Finds Asbestos Claims Against English Insurer Related To Arbitration Clause

NEW ORLEANS - A Louisiana federal judge on March 16 found that an English insurer's removal of a former machinist's asbestos-related claims from a state court was appropriate, finding that the dispute could relate to an underlying arbitration agreement contained in an insurance policy (James...

Mealey's Insurance - 4th Circuit Reinstates Retaliation Claim In Suit Over Overbilling Clinics

RICHMOND, Va. - A federal judge in Virginia erred in finding that a physical therapist assistant's retaliation claim against his employer should be dismissed, finding that they were not subject to the False Claims Act's (FCA) first-to-file rule, a Fourth Circuit Court of Appeals ruled March 16...

Mealey's Insurance - Judge: Jury Instructions Not Needed To Properly State Law In Bad Faith Suit

ATLANTA - A federal district court did not abuse its discretion in denying a third party's proposed jury instructions in an insurance bad faith lawsuit because the proposed instructions were not necessary "to correctly state the law," an 11th Circuit U.S. Court of Appeals panel ruled March...

Mealey's Insurance - Panel Reverses Ruling Against Insurer In Professional Liability Coverage Dispute

INDIANAPOLIS - An Indiana appeals panel on March 16 reversed a lower court's denial of a professional liability insurer's motion for summary judgment and its entry of a declaratory judgment in favor of the insured's estate in a coverage dispute erupting from an underlying malpractice claim...

Mealey's Insurance - Judge Finds Dismissal Of Couple's Claim Does Not Establish Unfair Practices

NEW HAVEN, Conn. - A federal judge in Connecticut on March 17 dismissed a couple's claim that their insurer engaged in unfair and deceptive practices in violation of the Connecticut Unfair Insurance Practices Act (CUIPA) and the Connecticut Unfair Trade Practices Act (CUTPA) when denying their claim...

Mealey's Insurance - Judge: Insurer Breached Duty To Defend, Indemnify Construction Suit Settlement

ANCHORAGE, Alaska - An insurer breached its duty to defend and indemnify an insured for a settlement of underlying claims arising out of a breach of contract dispute on a construction project, an Alaska federal judge ruled March 16; however, the judge held that the insurer did not breach its duty of...

Mealey's Insurance - Reinsured Says It Is Not Necessary To Show Reasons For Settling Asbestos Claims

NEW HAVEN, Conn. - An insurer told a federal court in Connecticut on March 20 that its reinsurer is putting requirements on it that are not universally accepted as necessary under the follow-the-settlements doctrine (Travelers Casualty and Surety Company, f/k/a The Aetna Casualty and Surety Company v...

Mealey's Insurance - Federal Judge Rules On Dueling Summary Judgment Motions In Hailstorm Dispute

JEFFERSON CITY, Mo. - A Missouri federal judge on March 16 granted in part and denied in part motions for summary judgment by insureds and a homeowners insurer in a class action alleging that the insurer committed breach of contract when it unlawfully applied a policy's $1,000 deductible to an actual...

Mealey's Insurance - California Federal Judge Says Complete Diversity Does Not Exist, Remands Mold Suit

LOS ANGELES - Because a plaintiff can arguably state a claim against an insurance claims adjuster for intentional infliction of emotional distress, the claims adjuster is not a sham defendant and was not fraudulently joined to defeat federal jurisdiction, a California federal judge said March 17 in remanding...

Mealey's Insurance - Insurer's Data Satisfies Florida's Definition Of Trade Secret, Majority Affirms

TALLAHASSEE, Fla. - A majority of a Florida appeals court on March 20 affirmed a lower court's ruling that an insurer's quarterly supplemental reporting (QUASR) data satisfies the definition of trade secret under state law and is, therefore, exempt from public disclosure (Office of Insurance...

Mealey's Insurance - Reinsurer Says Insurer Never Asked For Policy To Be Reinsured

PHILADELPHIA - A reinsurer asked a federal court in Pennsylvania on March 21 to dismiss an insurer's breach of contract counterclaim because the insurer allegedly never linked an underlying policy to a facultative certificate and, therefore, there is no contract between the parties reinsuring that...

Mealey's Insurance - Judge Agrees With Special Master, Finalizes Receivership Disallowance Of Claim

AUSTIN, Texas - A Texas judge on March 20 approved an application by an insolvent insurer's special deputy receiver (SDR) and declared the disallowance of a certain house fire claim final (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D...

Mealey's Insurance - Minnesota Federal Judge: Plan's Denial Of Benefits Was Not Arbitrary And Capricious

MINNEAPOLIS - A benefit plan did not act arbitrarily and capriciously in denying a participant's claim for short-term disability benefits because substantial evidence supports the plan's finding that the participant was able to return to work, a Minnesota federal judge said March 17 (Jeremy Braden...

Mealey's Insurance - Judge: Fact Issue Exists As To Whether Insured Submitted Acceptable Proof Of Loss

NEWARK, N.J. - Finding that there is a genuine issue of material fact regarding whether an insured complied with a provision of a Standard Flood Insurance Policy (SFIP) regarding proof of loss, a New Jersey federal judge on March 20 denied a federal flood insurer's motion for summary judgment in...

Mealey's Insurance - Judge: Coverage For Negligence In Performing Insurance Services Was Not Triggered

LOS ANGELES - A California federal judge on March 17 dismissed without prejudice a breach of contract and bad faith lawsuit against a professional liability insurer in a coverage dispute arising from the insured's alleged breach of a loan agreement (GemCap Lending, LLC v. Scottsdale Indemnity Co...

Mealey's Insurance - Claimant No Longer Disabled Under Plan's Terms, Indiana Federal Judge Says

INDIANAPOLIS - The termination of a claimant's long-term disability benefits was not arbitrary and capricious because the claimant was not disabled from "any gainful occupation," an Indiana federal judge said March 17 (Jill A. Stafford v. Anthem Life Insurance Co., et al., No. 15-2032,...

Mealey's Insurance - Reinsurer: Insurer Did Not Tell Of Trial Witnesses Until After End Of Discovery

SYRACUSE, N.Y. - A reinsurer asked a federal court in New York on March 17 for permission to file a letter motion asking the court to disqualify certain trial witnesses that were not revealed until after the end of discovery or, in the alternative, allow the reinsurer to depose the witnesses (Utica Mutual...

Mealey's Insurance - Judge Finds Jurisdiction Lacking In Insolvent Insurer's Suit Over ACA Payments

ST. LOUIS - An insolvent insurer's suit against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims, a federal judge in Iowa said March 17 in finding that she lacked...