Specialty Lines
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August 12, 2024
Markel Says No Coverage For Film-Financing Scheme Claims
A Markel unit said it has no duty to defend or indemnify a wealth manager or his companies against underlying claims that they misled investors into financing various film projects, telling an Illinois federal court that their policy bars coverage for claims arising out of the sale of securities.
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August 09, 2024
Calif. Car Wash's $1.95M Settlement Not Covered, Insurer Says
An insurer doesn't have to cover a $1.95 million settlement an insured car wash operator reached in an underlying lawsuit accusing the business of a litany of employment violations, the carrier told a California federal court, arguing that the business settled well above coverage limits without the insurer's authorization.
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August 09, 2024
Insurer Says Contractor's Bad Wires Caused $1.8M Yacht Fire
The insurer of a yacht that caught fire while plugged into a dock told a Florida federal court Friday that the electrical company that rewired the hookup owed more than $1.8 million to cover a payout, alleging that the company failed to ground the system, causing the blaze.
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August 08, 2024
No Private Right To Sue After 'Total Loss,' Colo. Panel Says
Colorado policyholders cannot sue their auto insurers to enforce a statute requiring them to cover vehicles' title and registration fees when vehicles are declared a total loss, a Colorado appeals court ruled Thursday, finding the statute contains no implied private right of action.
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August 08, 2024
Illinois Biometric Privacy Reform Eases Coverage Woes
Illinois reformed its biometric privacy law that started a wave of litigation by limiting the potential liabilities for sharing biometric data without informed consent, which experts said will ease the coverage concerns of both policyholders and insurers.
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August 08, 2024
Insurance Litigation Week In Review
The Eleventh Circuit rejected insurers' coverage challenges in separate suits over a wood-theft settlement and a storm damage appraisal award, a Georgia federal court ordered an insurer to defend a farm in a couple's suit over foul smells, and the Eighth Circuit said Geico had no duty to cover a woman's HPV claims. Here, Law360 takes a look at the past week's top insurance news.
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August 08, 2024
8th Circ. Avoids 'Absurd Results' In Geico HPV Suit
While the Eighth Circuit reasonably interpreted a Geico auto policy as not providing coverage for a woman's claim that she contracted HPV during sexual encounters in a policyholder's car, carriers should heed the case as a warning to draft clearer policy language, policyholder and insurer-side attorneys alike agreed.
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August 08, 2024
Community Insurance Can Plug NFIP Gaps, Expert Says
Community-based flood insurance can help cover insurance gaps and provide fast insurance relief to towns and cities at risk of flooding, UC Davis researcher and former Federal Emergency Management Agency engineer Kathleen Schaefer tells Law360.
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August 08, 2024
Conflicting Rulings Muddy Del. Stance On No-Action Clause
Conflicting Delaware state court rulings on the enforcement of no-action clauses in liability insurance policies have called into question the compatibility of such clauses with an insurer's duty to defend, policyholder experts say.
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August 07, 2024
5th Circ Lets La. Driver Stack Accident Coverage Payout
A driver of an 18-wheeler who suffered injuries in a fatal auto collision in Louisiana can use his own personal auto policy to "stack" underinsured motorist benefits under South Carolina law, the Fifth Circuit ruled, clarifying the distinction between the stackability and portability of insurance policies.
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August 06, 2024
7th Circ. Axes Broker's Win In Buccaneers Deal Coverage Suit
The Seventh Circuit on Tuesday reversed an Indiana federal court's finding that an insurance broker didn't need to indemnify Axis Insurance Co. for the Tampa Bay Buccaneers' voluntary settlement with a player, ruling that the insurers' contract clearly calls for Axis to be indemnified.
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August 06, 2024
Testing Lab Can't Add Bad Faith Claims In Income Loss Case
A Pennsylvania federal judge found Tuesday that a prior agreement between a medical testing lab and its insurer expressly precluded added allegations that the insurer acted in bad faith while handling the lab's claim for loss of records and business income.
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August 06, 2024
Blank Rome Adds Closed Insurance Boutique's Managing Atty
Blank Rome LLP has brought on an insurance partner from now-shuttered boutique Pasich LLP to join its insurance recovery group, the firm announced Monday.
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August 06, 2024
Farm Stench Insurance Coverage Case Saved By The Bugs
A Georgia couple accusing their poultry-farming neighbors of wafting putrid smells and failing to contain insects birthed upon their property succeeded Tuesday in forcing the farm's insurer to defend the business thanks to the bugs, a Georgia federal judge ruled.
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August 05, 2024
Manufacturer Can't Get Coverage For BIPA Class Action
An Illinois federal judge awarded a win to an insurer Monday in a suit over coverage of underlying Biometric Information Privacy Act litigation, finding a contractual exclusion prevented coverage for a machine and plastics manufacturer accused of failing to secure employee data.
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August 05, 2024
Pa. Utility Says Insurer Must Cover Spinoff Defense Costs
A Pennsylvania-based utility company told a federal court that its excess directors and officers insurer failed to cover any portion of the $53.4 million it incurred defending underlying lawsuits related to the spinoff of a subsidiary, noting that its primary insurer already paid its full $20 million limit.
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August 02, 2024
Family Denied Quick Win In Insurer's $2M Nursing Home Suit
An insurer for a now-bankrupt Georgia nursing home doesn't have to cover a $2.1 million judgment awarded to the family of a woman who died in the facility's care, a federal judge ruled Friday, finding an agreement between the facility and the family released the facility from all liability.
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August 02, 2024
Del. Judge Won't Toss Cos.' False Claims Coverage Dispute
A Delaware Superior Court judge refused to enforce a "no-action" clause in a suit brought by real estate holding companies seeking directors and officers coverage for an underlying False Claims Act qui tam action, according to a document obtained by Law360 on Friday.
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August 02, 2024
Data Breach Victims Seek $1.5M Settlement Approval
Three individuals suing a construction industry insurer over a data breach asked a North Carolina federal court to approve a nearly $1.5 million settlement to end their proposed class action accusing the insurer of failing to protect the information of policyholders, employees and stakeholders.
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August 01, 2024
4 Top Property Insurance Suits To Keep Watching In 2024
A dispute in Hawaii's top court over defense for climate change claims and a Fifth Circuit suit over insurance for an arbitration award for construction defects are among some of the top cases in the property insurance sphere worth keeping an eye on. Here, Law360 looks at four cases with notable decisions or litigation to come.
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August 01, 2024
11th Circ. Denies Coverage, Despite Insurer's Missing Comma
In a unanimous published opinion bound to frustrate grammarians, an Eleventh Circuit panel affirmed Thursday that though an insurer's policy might be missing a comma, the lack of punctuation didn't change its clear and unambiguous meaning, thus preventing payment to a food company.
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August 01, 2024
Staffing Agency Not Covered In Pay Law Row, Insurer Says
An insurer told a Washington federal court that it has no obligation to cover a home healthcare staffing agency in an underlying proposed class action accusing the agency of violating the Washington Equal Pay and Opportunities Act, maintaining that the underlying allegations fall outside the scope of its policy.
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August 01, 2024
Judgment Insurance Market Continues To Solidify, Attys Say
Insurance covering losses from a specific judgment or one that is reversed on appeal has become increasingly popular, attorneys tell Law360, raising questions on the extent courts will mandate disclosure of such policies and whether a critical mass of big-name carriers will wade into the market too.
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August 01, 2024
Insurance Litigation Week In Review
The D.C. Circuit revived an insurer’s bid to enforce arbitration awards against Argentina, a California federal court freed two AIG insurers from defending McKesson’s opioid suits and an ex-Allied World Insurance executive pled guilty in a $1.5 million fraud case. Here, Law360 takes a look at the past week's top insurance news.
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August 01, 2024
Aon Cyber Head Says Recent Attacks Spur Insurer Scrutiny
A spate of recent cyberattacks that have cost companies millions have raised existential questions about how cyberinsurance policies will continue to offset the growing risks. Law360 spoke with Brent Rieth, head of cyber solutions for North America at insurance broker Aon, about the role that brokers play in navigating market volatility.
Expert Analysis
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What New Conn. Insurance Bulletin Means For Data And AI
A recent bulletin from the Connecticut Insurance Department concerning insurers' usage of artificial intelligence systems appears consistent with the National Association of Insurance Commissioners' gradual shift away from focusing on big data, and may potentially protect insurers from looming state requirements despite a burdensome framework, say attorneys at Day Pitney.
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High Court Should Maintain Insurer Neutrality In Bankruptcy
While a recent Law360 guest article argues that the U.S. Supreme Court should endorse insurer standing in Truck Insurance Exchange v. Kaiser Gypsum, doing so would create a playground for mischief and delay, and the high court should instead uphold insurance neutrality, say attorneys at Lowenstein Sandler.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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What 2 Years Of Ukraine-Russia Conflict Can Teach Cos.
A few key legal lessons for the global business community since Russia's invasion of Ukraine could help protect global commerce in times of future conflict, including how to respond to disparate trade restrictions and sanctions, navigate war-related contract disputes, and protect against heightened cybersecurity risks, say attorneys at Morgan Lewis.
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Cos. Seeking Cyber Coverage Can Look To Key Policy Terms
As cyberattacks increasingly threaten business operations, including one last month that partially paralyzed UnitedHealth's services, expanded interpretations of several key policy terms may allow affected companies to recover under cyber business interruption policies or other coverage, even if their business hasn't completely shut down, say attorneys at Kasowitz.
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Insurance Industry Asbestos Reserve Estimates Are Unreliable
Insurance regulators rely on industry self-reporting in approving insurance company reorganizations, but AM Best data reveals that actuarial and audit estimates have been setting perniciously low levels of loss reserves for asbestos liabilities and thus should be treated with deep skepticism, says Jonathan Terrell at KCIC.
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Insurance Implications Of Trump's NY Civil Fraud Verdict
A New York state trial court’s $450 million judgment against former President Donald Trump and affiliated entities for valuation fraud offers several important lessons for companies seeking to obtain directors and officers insurance, including the consequences of fraudulent misrepresentations and critical areas of underwriting risk, says Kevin LaCroix at RT ProExec.
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Understanding Insurance Is Key To Limiting Antitrust Liability
As regulators signal their intent to continue last year's aggressive campaign of corporate antitrust litigation, businesses must make active management of their liability insurance policies, along with a firm knowledge of the limits of their coverage, central to their strategies for limiting the enormous financial risks of enforcement, say attorneys at Nossaman.
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High Court Should Endorse Insurer Standing In Bankruptcy
In Truck Insurance Exchange v. Kaiser Gypsum, the U.S. Supreme Court will examine bankruptcy standing doctrine as applied to insurers in mass tort cases, and should use the opportunity to eliminate spurious standing roadblocks to resolving insurer objections on their merits, says Frank Perch at White and Williams.
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Lessons For D&O Policyholders From Pharma Co. Ruling
A California federal court's recent decision in AmTrust v. 180 Life Sciences, requiring insurers to advance defense costs for a potentially covered claim, provides a valuable road map for directors and officers insurance policyholders, rebutting the common presumption that a D&O insurer's duty to advance costs is more limited than under other policies, say attorneys at Pasich.
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5 Tips For Policyholders Arbitrating R&W Insurance Claims
With more representations and warranties insurance disputes being arbitrated, policyholder counsel should note issues that are unique to RWI claims, including those of privilege, priority and preserving subrogation, says Micah Skidmore at Haynes Boone.
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Justices Stay The Course In Maritime Choice-Of-Law Ruling
The U.S. Supreme Court's narrowly drawn decision in Great Lakes Insurance v. Raiders Retreat Realty, enforcing the underlying insurance contract's choice-of-law provision, carefully distinguishes those provisions from forum selection clauses, and ensures that courts will not apply its precepts outside the maritime context, says John Coyle at the University of North Carolina.
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Key Lessons After A Rare R&W Insurance Ruling
The recent New York state court decision in Novolex Holdings v. Illinois Union Insurance is noteworthy as one of the rare judicial opinions arising in the context of representations and warranties insurance, serving to remind parties entering into R&W insurance policies that they may not be immune from some doctrines unfavorable to insurers, say attorneys at Kramer Levin.