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Mealey's Insurance - Reinsurer Denies Allegations Made In Breach Of Contract Suit Filed By Reinsured

MONTGOMERY, Ala. - A reinsurer told a federal court in Alabama on Jan. 2 that its reinsured submitted a reinsurance loss bill under a different agreement than the one listed in the reinsured's complaint (Alabama Municipal Insurance Corporation v. Munich Reinsurance America, Inc., No. 16-cv-00948...

Mealey's Insurance - 10th Circuit: Court Properly Vacated Order Confirming Appraisal Award, Judgment

DENVER - A commercial property insurer's voluntary payment of an appraisal award and the insured's acceptance of the payment settled any dispute over the amount of storm loss to the insured's property, the 10th Circuit U.S. Court of Appeals ruled Jan. 4, affirming a lower court's decision...

Mealey's Insurance - Federal Judge: Recovery Sought Does Not Fall Under Policy's 'Definition Of Damages'

CHICAGO - An Illinois federal judge on Jan. 5 held that a professional liability insurer has no duty to defend or indemnify against an underlying complaint alleging that the insureds misrepresented important data that an insurer used to calculate premiums (Westport Insurance Corp. v. M.L. Sullivan Insurance...

Mealey's Insurance - Insurer Says Court Should Decide If Dispute Can Be Arbitrated

SAN FRANCISCO - An insurer told a federal court in New York on Jan. 6 that the issue of whether a workers' compensation claim dispute can be arbitrated and what parties should participate in the arbitration is up to the court and not up to a panel of arbitrators to decide (In the Matter of the Arbitration...

Mealey's Insurance - Insurer Says No Coverage For Roofing Subcontractor's $6.6M In Faulty Work Damage

CHICAGO - A commercial general liability insurance policy does not cover a roofing subcontractor over faulty work claims that resulted in more than $6.6 million in damages to townhomes, an insurer says in its Jan. 4 complaint to an Illinois federal court (Nautilus Insurance Co. v. Classic Roofing Inc...

Mealey's Insurance - Majority: No Coverage For Legal Expenses Incurred Without Insurer's Approval

ATLANTA - A majority of the 11th Circuit U.S. Court of Appeals ruled Jan. 9 that an insurer has no duty to pay an insured's $405,989 in pre-tender legal expenses incurred in defending a copyright infringement lawsuit, affirming a lower court's finding that Florida's claims administration...

Mealey's Insurance - Judge Orders Health Care Fraud Defendant To Turn Over Retirement Funds

CHICAGO - A cardiologist who pleaded guilty to one count of health care fraud for fraudulently billing Medicare and other insurance companies was ordered by a federal judge in Illinois to turn over three retirement funds valued at $300,738.60 after finding that forfeiture of the funds would not result...

Mealey's Insurance - 7th Circuit Panel Finds Benefits Termination Was Not Arbitrary And Capricious

CHICAGO - A disability insurer's termination of benefits was not arbitrary and capricious because the evidence supported the termination and the insurer minimized any conflict of interest by employing a number of safeguards, the Seventh Circuit U.S. Court of Appeals said Jan. 6 (Donna Geiger v. Aetna...

Mealey's Insurance - Insureds' Lack Of Breach Of Contract Claim Leads To Dismissal Of Bad Faith Claim

TAMPA, Fla. - Because insureds have failed to bring a claim for breach of contract, they have failed to state a claim for bad faith and have violated the particularity requirement pursuant to the Federal Rules of Civil Procedure, a federal judge in Florida ruled Jan. 9 (Fred Fox, et al. v. Starr Indemnity...

Mealey's Insurance - No Coverage Owed For Environmental Contamination, Federal Magistrate Judge Says

HAMMOND, Ind. - Insureds seeking coverage for environmental contamination discovered on a property they purchased are not entitled to coverage because the policy bars coverage for known or unknown property damage and for property damage that began before the policy's inception, an Indiana federal...

Mealey's Insurance - Judge: No Indemnification Owed For Water Damage Caused By Insured

CHICAGO - An insurer has no duty to indemnify an insured and no duty to reimburse an additional insured for alleged water damage to an apartment building because there was no covered "occurrence" for the insured's failure to properly cover the building's roof, an Illinois federal judge...

Mealey's Insurance - Judge Dismisses Breach Of Contract Claim Due To Insurer's Lack Of Coverage Decision

SEATTLE - A Washington federal judge dismissed on Jan. 5 an insured's breach of contract claim against its insurer because the insurer has not granted or denied coverage for a claim for water damage to a condominium complex (Mainhouse Homeowners Association v. Allstate Insurance Co., et al., No....

Mealey's Insurance - Federal Magistrate Judge Says Insurer Must Produce Information On Other Claims

HATTIESBURG, Miss. - A Mississippi federal judge on Jan. 6 partially granted a motion to compel filed by insureds seeking coverage for a gasoline leak after determining that the insurer is required to produce information related to the insurer's claims handling of other gasoline leak claims (Grain...

Mealey's Insurance - Reinsurers Say They Do Not Oppose Petition To Confirm Arbitration Award

NEW YORK - A group of London-based reinsurers told a federal court in New York on Jan. 9 that they do not oppose a reinsured's motion to confirm an asbestos related arbitration award (OneBeacon Insurance Company v. Certain Underwriters at Lloyd's London, No. 16-cv-09908, S.D. N.Y.).

Mealey's Insurance - 3rd Circuit Affirms Dismissal Of Unjust Enrichment Claim Against Insurer

PHILADELPHIA - The Third Circuit U.S. Court of Appeals on Jan. 9 affirmed a lower federal court's dismissal with prejudice of an unjust enrichment claim against an insurer, finding that the complaint fails to allege that the insurer requested a benefit from the plaintiff or misled it in any way ...

Mealey's Insurance - DOJ: Neurosurgeon Sentenced To 235 Months In Prison For Fraud Scheme

DETROIT - The U.S. Department of Justice announced that a federal judge in Michigan on Jan. 9 sentenced a neurosurgeon to 235 months in prison for his role in a $2.8 million Medicare fraud scheme that involved the doctor billing public and private insurers for spinal fusions that he never performed ...

Mealey's Insurance - Panel: Insurer Entitled To Recoupment Of Costs Defending Trade Secret Dispute

SAN FRANCISCO - A California appeals panel on Jan. 10 affirmed a lower court's grant of summary judgment in favor of an insurer seeking recoupment of the costs it incurred in defending its agents against claims it brought against the agents involving trade secrets (State Farm Fire And Casualty Co...

Mealey's Insurance - New York High Court Certifies Reinsurance Liability Cap Question

ALBANY, N.Y. - The New York Court of Appeals on Jan. 10 certified a question from the Second Circuit U.S. Court of Appeals regarding reinsurance liability cap limits as they relate to per-occurrence loss and expense (Global Reinsurance of America v. Century Indemnity Company, No. 34, N.Y. App.).

Mealey's Insurance - Coverage Of Share Dispute Barred By 'Insured Vs. Insured' Exclusion, Panel Affirms

ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on Jan. 11 affirmed a lower court's ruling that a directors and officers liability insurance policy's "insured vs. insured" exclusion bars coverage for an underlying share dispute brought against a closely held corporation and two...

Mealey's Insurance - South Carolina High Court Affirms Time-On-The-Risk Allocation Of Insurer's Costs

COLUMBIA, S.C. - The majority of the South Carolina Supreme Court on Jan. 11 affirmed a special referee's finding that coverage under commercial general liability insurance policies was triggered and calculation of an insurer's pro rata portion of the progressive damages based on its time on...