Insurance

  • October 14, 2014

    DirectTV Sues FM Global For $23M In Thailand Flood Losses

    DirecTV has sued Factory Mutual Insurance Co. in California state court for not covering $23 million in losses from flooding that shut down a manufacturing plant in Thailand that supplies the company's hard drives, after FM said coverage didn’t extend to suppliers not under contract with DirecTV.

  • October 14, 2014

    Sinkhole Coverage Suit Time-Barred, Fla. Appeals Court Says

    A Florida appeals court has denied two homeowners coverage from the state for sinkhole losses after their insurer went belly-up, finding that the suit was time-barred, but also suggesting that a longer statute of limitations on such claims may be in order.

  • October 14, 2014

    Highmark, Keystone Health Sue Pa. Gov't For Blocking HMO

    Highmark Inc. and subsidiary Keystone Health Plan West Inc. filed a complaint in Pennsylvania federal court Friday against the state, alleging government officials' insistence that Highmark expand its provider network for a new Medicare Advantage offering is anti-competitive and unlawful.

  • October 14, 2014

    Detroit Close To Deal With FGIC Over $1B Bankruptcy Claim

    The city of Detroit is close to reaching a settlement with holdout creditor Financial Guaranty Insurance Co., which has a more than $1 billion claim in the city's Chapter 9 bankruptcy case based on bonds it guaranteed, lawyers for the parties said Tuesday in Michigan bankruptcy court.

  • October 14, 2014

    Insurer One Step Closer To Ducking Ammonia Cleanup Costs

    A Pennsylvania federal judge on Tuesday refused to throw out Scottsdale Insurance Co.’s suit against Refrigeration Service and Engineering Inc. seeking a declaration that the insurer isn’t responsible for defense costs from an ammonia contamination suit, finding RSE is properly named as a defendant.

  • October 14, 2014

    ACA Spurs Feds To Rethink Anti-Kickback Policies

    An inspector general's striking new proposal to relax anti-kickback policies is an acknowledgment that the Affordable Care Act's vision of lower costs and higher-quality care may require hospitals, insurers and pharmacies to have more leeway to provide discounts and incentives that have long been off-limits, experts say.

  • October 12, 2014

    Banks Agree To End 'Too-Big-To-Fail' Swaps Provision

    Goldman Sachs Group Inc., Bank of America Corp. and 16 other global banks have agreed to new limits on their rights as counterparties in cross-border swaps transactions, a move the International Swaps and Derivatives Association said may help end the notion that some banks are "too big to fail."

  • October 10, 2014

    Bernanke Testifies AIG Bailout Wasn't About Punishment

    Former Federal Reserve Chairman Ben Bernanke said at trial Friday in the U.S. Court of Federal Claims that he had been reluctant to offer American International Group Inc. a bailout during the 2008 financial crisis, but had not intended to “punish” the firm when approving the deal.

  • October 10, 2014

    Supreme Court Won't Back Stay On Idaho Gay Marriages

    The U.S. Supreme Court refused Friday to grant an emergency stay preventing Idaho from issuing marriage licenses and recognizing same-sex nuptials from out of state, greenlighting the Ninth Circuit to enter an order allowing its ruling to go into effect.

  • October 10, 2014

    Calif. Consumer Laws Cover Home Warranties, 9th Circ. Told

    A former Old Republic Home Protection Co. customer on Friday urged the Ninth Circuit to revive his putative class action alleging Old Republic rips off its customers, arguing the company’s home warranties are a consumer service regulated by state law, not insurance.

  • October 10, 2014

    Highmark Medicare Plan Violates UPMC Deal, Pa. AG Says

    Pennsylvania's top prosecutor on Friday urged a state court to force Highmark Health to restore coverage to seniors after launching a new Medicare product that allegedly denies them in-network access to medical services, in violation of a July consent decree meant to guarantee that access to elderly clients.

  • October 10, 2014

    2nd Circ. Sends Geico Employees' OT Dispute To Trial

    Government Employees Insurance Co. can’t escape an overtime collective action by its telephone claims adjusters after the Second Circuit ruled Friday that it had questions about the employees’ allegedly exempt status under the Fair Labor Standards Act, reversing a summary judgment order in Geico's favor and sending the case to trial.

  • October 10, 2014

    Texas CGL Case May Boost Insureds In Property Damage Suits

    The Texas Supreme Court is set to weigh in on the interpretation of two terms commonly used in exclusions in commercial general liability policies, and attorneys say a ruling that the terms are ambiguous under state law would provide a huge boost to policyholders in property damage coverage litigation.

  • October 10, 2014

    Insurer Can Limit Firm's Fraud Defense Coverage: 3rd Circ.

    Camico Mutual Insurance Co. doesn’t need to cover all of accounting firm Heffler Radetich & Saitta LLP’s defense of a suit over an employee’s role in a $40 million scheme to defraud class action settlement funds, the Third Circuit said Friday, ruling that the insurer can recoup money spent defending the firm.

  • October 10, 2014

    3 Tips For Avoiding EEOC Suits Over Wellness Programs

    Corporate wellness programs have become increasingly attractive as employers look to reduce health care costs and avoid the Affordable Care Act's so-called Cadillac tax, but recent U.S. Equal Employment Opportunity Commission suits show they can come with legal risks. Lawyers offer three suggestions for employers that want to keep out of the EEOC's crosshairs while motivating workers to stay healthy.

  • October 10, 2014

    Taxation With Representation: Fried Frank, Wachtell, Sullivan

    In this week's Taxation With Representation, Ireland's Endo International PLC swallows Auxilium Pharmaceuticals Inc. in a $2.6 billion deal, and a Chinese insurer takes the iconic Waldorf Astoria New York hotel off of Hilton Worldwide Holdings Inc.'s hands in a transaction manned by attorneys from Fried Frank, Skadden and Simpson Thacher.

  • October 10, 2014

    Travelers Must Cover Seized Bank's D&O Defense, Judge Says

    A California federal judge has ruled that a unit of Travelers Property Casualty Co. of America can’t deny coverage to former directors and officers of a defunct bank that was sued by the Federal Deposit Insurance Corp., ruling the exclusion terms of the bank’s policy are ambiguous.

  • October 10, 2014

    Insurer Can Yank Jailed Ex-Atty's Malpractice Policies: Judge

    An Indiana federal judge has freed Minnesota Lawyers Mutual Insurance Co. from defending malpractice lawsuits against a former Indianapolis attorney currently behind bars for victimizing his clients in a $4.5 million Ponzi-like scheme, ruling that the insurer was misled and can rescind the policies.

  • October 9, 2014

    Telemarketers Ink $125M Deal To End FTC Health Scam Claims

    IAB Marketing Associates LP and others on Thursday agreed to pay $125 million to end the Federal Trade Commission’s allegations they duped consumers looking for health insurance into buying IAB memberships that gave some medical discounts.

  • October 9, 2014

    Bernanke Defends AIG Deal In Bailout Comparison

    Former Federal Reserve Chairman Ben Bernanke on Thursday defended allegedly more favorable lending terms other firms had received during the 2008 financial crisis compared to American International Group Inc., saying they were the result of necessary policy considerations, as trial continued in a shareholder suit over the insurer's bailout.

Expert Analysis

  • How Congress Came Together Over Flood Insurance Reform

    Larry C. Lavender

    Despite congressional gridlock, a major bipartisan agreement reauthorizing the Biggert-Waters Flood Insurance Reform Act occurred in March. How? Grassroots activists undertook a relentless campaign to explain the national issues addressed in the law to leaders outside the Gulf Coast, says Larry Lavender of Jones Walker LLP.

  • Opportunities And Pitfalls In The Legal Cloud

    David Houlihan

    Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.

  • Toward A Mandatory Polar Code By Tacit Means

    Adam Patrick Murray

    The potential use of "tacit acceptance" by the International Maritime Organization to approve mandatory Polar Code regulations reflects how IMO decision makers may define "effective implementation" and raises legitimacy concerns to both substantive and technical requirements, says Adam Patrick Murray of the Arctic Law & Policy Institute.

  • A General Counsel's Top 10 Billing Tips

    Francis M. Drelling

    Nothing makes an in-house counsel feel like they are being nickeled-and-dimed more than receiving a $3.50, stand-alone invoice. Forcing anyone to spend time on a $3.50 invoice is, quite frankly, just not cool, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.

  • Avoiding Open-Ended Liability From Autonomous Vehicles

    Michael Preciado

    Technology and automobile companies concerned about outdated software-related accidents should consider drafting statutes of repose applicable to autonomous vehicle liability — they would protect insurance companies too as they are generally drafted to stabilize the industry by eliminating stale claims from open-ended liability, says Michael Preciado of Snell & Wilmer LLP.

  • When Does An Insurance Co. Waive Atty-Client Privilege?

    Joan M. Cotkin

    A policyholder’s counsel might consider sending discovery requests inquiring whether the insurer-defendant claims to have acted legally at all relevant times, which we suspect the insurer-defendant is likely to respond in the affirmative — if it does so, will it have waived the privilege? asks Joan Cotkin of Nossaman LLP.

  • Brace For This Brief's Impact On The Supreme Court

    James H. Wendell

    SCOTUSblog founder Thomas Goldstein's no-party, no-argument amicus brief in M&G Polymers USA LLC v. Tackett is likely the first of its kind before the U.S. Supreme Court, making it one of the more intriguing developments of the upcoming term. It can demonstrate the power of a data-centric argument, says James Wendell of Riddell Williams PS.

  • Insurers, Be Ready To Pay Twice In Texas

    David B. Winter

    Recent decisions from the Texas Supreme Court and the Dallas Court of Appeals show that under Texas law, an insurer bears the risk of improper conduct by its insured in depositing a claim payment without obtaining the proper endorsement of all payees, says David Winter of Zelle Hofmann Voelbel & Mason LLP.

  • Ill. Joins State Trend On Malicious Prosecution Claims

    Jordon S. Steinway

    An Illinois appellate court's recent ruling in St. Paul Fire and Marine Insurance Co. v. The City of Zion is the first since 1979 to address the issue of trigger for malicious prosecution claims and, in finding that coverage is triggered the year the underlying malicious acts first occurred, the holding seems to push the state toward the majority trend, say Adam Fleischer and Jordon Steinway of BatesCarey LLP.

  • ACA Tax Subsidy Dispute May End Up Before High Court

    J. Peter Rich

    Given the political composition of the D.C. Circuit as it prepares to hear Halbig v. Burwell en banc, it is expected that the full court will rule in favor of the government, which may ultimately result in appeal to the U.S. Supreme Court, say J. Peter Rich and Lauren D'Agostino of McDermott Will & Emery LLP.