Insurance

  • January 26, 2015

    Ohio Sues Feds Over ACA-Mandated Reinsurance Payments

    Ohio’s attorney general claims the Department of Health and Human Services has overstepped its legal and constitutional bounds by collecting millions in what amounts to a tax from states for an Affordable Care Act program.

  • January 26, 2015

    Insurer Says Oil Well Co. Not Covered For $23M Blowout Suit

    Evanston Insurance Co. sued a well operations consultant in Louisiana federal court Monday, saying policies it issued to the company won't cover a $23 million suit claiming the company’s negligence caused a July 2012 well blowout because the claims were filed too late or otherwise excluded.

  • January 26, 2015

    Insurer Can't Escape Health Benefit Co.'s Coverage Suit

    A Louisiana federal judge on Friday rejected a Lloyd's of London underwriter's bid to dismiss claims that it abandoned its duty to cover a health care benefit manager in a proposed class action, ruling that the relevant insurance policy is unambiguous and that a claim was made against the insured during the policy period.

  • January 26, 2015

    Insurance Group Of The Year: Dickstein Shapiro

    Dickstein Shapiro LLP's insurance practice won key rulings last year for an NRG Energy Inc. unit in litigation over coverage for a U.S. Environmental Protection Agency suit and secured a $1.6 million jury verdict in a Superstorm Sandy dispute, making it a Law360 Insurance Group of the Year.

  • January 26, 2015

    KBR Seeks 10th Circ. Rehearing in $2M Pipeline Pollution Row

    Kellogg, Brown & Root LLC on Friday said the Tenth Circuit had improperly discounted its arguments that an agreement with a construction company, which indemnified it from $2 million in claims arising from work on a Texas pipeline, satisfied the Lone Star state’s fair-notice requirement, and reiterated its bid for a rehearing.

  • January 26, 2015

    IRS Waives Penalties For Not Repaying Insurance Tax Credits

    The Internal Revenue Service said Monday it will waive for one year penalties on taxpayers who received more tax credits to pay for health insurance than they were owed and who do not repay the excess by the tax filing deadline.

  • January 26, 2015

    AXA Says Trustee Approval Trumps Investors' Fee Gripe

    Investors suing AXA Equitable Funds Management Group LLC can't prove its investment management fees were unfair because they were approved by independent trustees on mutual fund boards, the asset management firm told a New Jersey federal judge Friday.

  • January 26, 2015

    Nelson Brown Drops Fee Fight With Ex-Subrogation Attys

    Ailing insurance boutique Nelson Brown and Co. has dropped a Pennsylvania state court lawsuit against seven of its former attorneys who split to form the subrogation-only practice de Luca Levine LLP, in which it sought to hold onto contingency fees.

  • January 26, 2015

    Calif. Appeals Court Limits Negligence Claims

    A California Court of Appeal held in a case of first impression that defendants who gave medical treatment can’t reduce their liability for harm caused by their negligence by ascribing fault to the plaintiff for causing the injury in the first place.

  • January 26, 2015

    Mich. Fights Delphi Workers' Comp Ruling At High Court

    A recent Second Circuit decision freeing two insurers from assuming workers' compensation liabilities from Delphi Corp. sets a precedent that allows federal bankruptcy courts to usurp state sovereignty in violation of the U.S. Constitution, Michigan Attorney General Bill Schuette argued in a petition to the U.S. Supreme Court.

  • January 26, 2015

    Justices Keep $24M Capeco Insurance Distribution Intact

    A Caribbean Petroleum Corp. co-defendant in litigation over the terminal explosion that pushed the oil company into Chapter 11 failed Monday to obtain U.S. Supreme Court review of a bankruptcy decision denying tort claimants priority access to $24 million in related insurance proceeds.

  • January 26, 2015

    Insurers Fight To Keep Up As Deal Insurance Goes Mainstream

    The use of reps and warranties insurance has exploded, with the market for the liability policy growing roughly fourfold last year, but that rapid growth has left insurers struggling to keep up.

  • January 26, 2015

    US, India Forge Ahead On Nuclear Projects, Investment Pact

    President Barack Obama and Indian Prime Minister Narendra Modi on Sunday announced progress on a litany of policy fronts, resolving a protracted squabble over disaster liability for nuclear energy companies operating in India and vowing to restart long-delayed investment treaty negotiations.

  • January 26, 2015

    Reinsurance Stays At Fore As Axis, PartnerRe Form $11B Firm

    Axis Capital Holdings Ltd. and PartnerRe Ltd. agreed late on Sunday to form a single reinsurer with a market value around $11 billion, underscoring a wave of consolidation that continues to wash over the industry — particularly the red-hot reinsurance segment.

  • January 23, 2015

    Ala. Federal Judge Strikes Down Same-Sex Marriage Ban

    An Alabama federal judge on Friday struck down the state’s bans on same-sex marriage a week after the U.S. Supreme Court agreed to decide whether such bans were unconstitutional, making Alabama the 37th state to allow same-sex marriage.

  • January 23, 2015

    Visteon's Bid For $8M Pollution Coverage Axed By 7th Circ.

    The Seventh Circuit refused on Friday to order National Union Fire Insurance Co. of Pittsburgh to cover auto parts supplier Visteon Corp. for $8 million in cleanup and litigation costs over pollution from an Indiana plant, saying a key carveout from the pollution exclusion does not apply.

  • January 23, 2015

    Insurer Off Hook For Suits Claiming Supplement Is Like Meth

    General Star Indemnity Co. doesn't have to defend or indemnify supplement maker Driven Sports Inc. in several suits alleging one of DS' products contains an illegal methamphetamine-like substance, a New York federal judge ruled Friday, saying all the claims in the underlying actions fall squarely within a policy exclusion.

  • January 23, 2015

    2nd Pa. Atty Disbarred Over Role In Annuities Scheme

    The Pennsylvania Supreme Court on Friday disbarred a second attorney involved in a scheme to aggressively market living trusts to senior citizens using nonattorneys, who allegedly sold the legal services based on exaggerations and misrepresentations.

  • January 23, 2015

    Shutts & Bowen Adds Construction, Insurance Pro In Miami

    Shutts & Bowen LLP announced Friday that it has added Michael Jay Rune II as a partner in its Miami office, where he will handle construction and insurance work.

  • January 23, 2015

    FDIC Can Recover Up To $15.2M From Integra's Insurer

    An Indiana federal judge said Thursday that the Federal Deposit Insurance Corp., as receiver for Integra Bank NA, can recover up to $15.2 million from Fidelity and Deposit Co. of Maryland in a suit seeking coverage for losses from loans to Ponzi schemer Lou Pearlman.

Expert Analysis

  • OFAC Sanctions Compliance: Sample Contract Provisions

    Margaret Gatti

    Due to costly settlements secured by U.S. regulatory agencies, increasingly banks, insurers and corporations are inserting rigorous Office of Foreign Assets Control sanctions compliance language into their credit agreements, insurance policies, and corporate acquisition agreements, say Margaret Gatti and Louis Rothberg of Morgan Lewis & Bockius LLP.

  • Affordable Care Act Considerations In M&A

    Robert L. Jensen

    In light of significant penalties for failure to comply with the Patient Protection and Affordable Care Act, acquirers need to undertake a thorough evaluation of the target’s group health plans and will need to consider potential operational issues following the transaction, especially those that relate to the determination of full-time employee status for purposes of the ACA employer mandate rules, says Robert Jensen of Drinker Bi... (continued)

  • The 'I' Of The Storm: Insured V. Insured Is Ambiguous

    Peter D. Laun

    Courts going back more than 15 years have pointed out that the language of the insured vs. insured exclusion is unclear as it applies to claims by the Federal Deposit Insurance Corp., as in the Eleventh Circuit's recent ruling in St. Paul Mercury Insurance Co. v. FDIC, yet the insurance industry has failed to make its intent clear — the language should be construed against the insurer as drafter, says Peter Laun of Jones Day.

  • Making Sense Of Delaware's Cigna V. Audax Decision

    Lisa R. Stark

    In Cigna Health and Life Insurance Co. v. Audax Health Solutions Inc., where the Delaware Court of Chancery found common post-closing price adjustments unenforceable, the true concern seemed to be that the merger agreement and the letter of transmittal were contracts of adhesion — effectively forcing stockholders to agree to give back merger consideration at some undetermined time in the future. This concern could be ameliorated, s... (continued)

  • 5th Circ. Highlights Importance Of Claim Investigation

    Kristen C. Cummings

    Based on the Fifth Circuit’s decision in Santacruz v. Allstate Texas Lloyd’s Inc., an insurer that “reasonably believes” it has a basis to deny coverage should still make sure it conducts a sufficient investigation into the basis supporting its belief. Failure to do so could result in a finding that the insurer breached the duty of good faith and fair dealing, says Kristin Cummings of Zelle Hofmann Voelbel & Mason LLP.

  • Law Schools Are (Finally) Teaching 'The Biz' Of Lawyering

    Howard Breuer

    Educators across the country say law schools are now more aggressively teaching the business side of being a lawyer — spurred on by a shifting market that continues to provide fewer and fewer associate opportunities for recent grads, and feedback from students and new lawyers eager to learn how to bring in clients once they hang out a shingle, according to legal industry consultant and journalist Howard Breuer.

  • Winter Has Come: Can You Count On Your Coverage?

    John N. Ellison

    If the recent record-setting levels of snowfall in Buffalo, New York, are any indication, this winter looks set to be a reprise of the previous one. As a result, commercial policyholders may have significant insurance claims for property damage, loss of business income and extra expenses incurred to continue or resume operations, say attorneys at Reed Smith LLP.

  • With New Cybersecurity Approach, Can Insurers Meet Demand?

    Ben Beeson

    In the last year, much has been written about adopting a governance approach to cyber-risks led by executives and boards of directors. Many pinpoint a high-profile CEO losing his job after a major data breach as the catalyst for change. But there is another little-discussed reason that is proving fundamental in ensuring that companies are better prepared to defend against cyberthreats, says Ben Beeson of Lockton Companies.

  • Pa. High Court Severely Limits Multiple Trigger Theory

    Keith E. Whitson

    In Pennsylvania National Mutual Casualty Insurance Co. v. St. John, the Pennsylvania Supreme Court rejected an attempt to apply the “multiple trigger” theory to property damage claims and instead provided clarity on how to apply the “manifestation trigger” in determining when commercial general liability policies are triggered, say Keith Whitson and Emily Spanovich of Schnader Harrison Segal & Lewis LLP.

  • Secrets To In-House Cost Control

    Lauren M. Chung

    While most law departments kept legal spending increases in 2014 to modest levels, a recent survey revealed that 42 companies reported a 3 percent decrease in total legal spending. A closer look at the practices of this subgroup identifies a number of helpful lessons, says Lauren Chung of HBR Consulting LLC.