Specialty Lines
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March 31, 2023
Nursing Co. Owes $1M Over Reneged Deal, Insurer Says
A nursing home company facing malpractice litigation reneged on its deal to have its insurer "buy out" a professional liability policy, and now owes the insurer nearly $1 million, the insurer told a New York federal court.
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March 31, 2023
Disasters, Inflation Hardening A Still Flush Insurance Market
High natural disaster losses and persistent inflation have conspired to create one of the hardest insurance markets in a generation, according to a recent report from a leading insurer trade group, but experts stress the industry as a whole remains well capitalized.
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March 31, 2023
Agency's Settlement Remorse Heads To Mich. High Court
The Michigan Supreme Court said Friday it would consider whether a road agency lawyer's informal, emailed discussions with insurers locked the agency into a settlement, despite never formally voting to approve the deal and later disavowing it.
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March 31, 2023
Philadelphia Spill Scare Could Present Coverage Challenges
A Dow Chemical spinoff's response to a release of 8,100 gallons of chemicals that threatened a portion of Philadelphia's drinking water supply could present a Hobson's choice for the company as it aims to secure insurance coverage while also acting quickly to engage in cleanup activities.
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March 31, 2023
Attys Score $8.5M Award in Avis Rental Insurance Settlement
A Florida federal judge approved an $8.5 million attorney fee award to the lawyers who secured a $34 million settlement between a class of rental car customers and Avis Budget Car Rental, which the class claims failed to give them the special liability insurance they paid for their rental cars.
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March 30, 2023
Va. Beach Eatery Not Covered For Models' Photo Misuse Suit
An insurer doesn't owe coverage to a Virginia Beach restaurant accused by a group of professional models of misappropriating their images on the establishment's website and social media, a Virginia federal court ruled Thursday, citing policy exclusions for intellectual property infringement and criminal acts.
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March 30, 2023
FTX Scoffs At Bankman-Fried's Request For Defense Funds
Indicted FTX co-founder and former CEO Sam Bankman-Fried should not be allowed to "drain" potentially millions in insurance money from the bankrupt cryptocurrency platform to defend himself against the criminal charges and civil lawsuits he is facing, the company's current leadership told a Delaware bankruptcy judge.
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March 30, 2023
Ex-CEO Whistleblower Nets $12M In Hospital's $69M FCA Deal
A former top executive of a Michigan regional hospital system who filed a whistleblower complaint is receiving over $12 million as part of $69 million settlements her former employer and two physicians reached with federal and state authorities over alleged False Claims Act violations, federal authorities announced Wednesday.
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March 30, 2023
Insurer Must Defend Warehouse In Damaged Goods Case
A New York federal judge said contractual ambiguities meant the insurer of a warehousing and shipping business must defend the company in an underlying suit brought by a bed company for wrongly keeping and damaging warehoused products, among other things.
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March 30, 2023
Co. Wants $3.8M Judgment Coverage Suit Tossed Or Moved
A Louisiana pipe inspection company asked a New York federal court to dismiss a lawsuit by its excess professional liability insurer over coverage of a $3.8 million judgment or to at least transfer the case to Louisiana federal court, where a previously filed case is pending.
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March 30, 2023
Firm Wants 9th Circ. Redo On Malicious Prosecution Coverage
A Los Angeles law firm wants the Ninth Circuit to rethink its decision that an insurance company should be reimbursed for its contributions to a malicious prosecution settlement, arguing the ruling had the "unintended consequence" of turning California insurance regulations into a "dangerous trap for unwitting insureds."
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March 29, 2023
3rd Circ. Orders Trial In Pharma Fraud Coverage Suit
The Third Circuit on Wednesday revived an insurer's suit seeking to avoid paying $1.1 million in defense costs for a U.S. Securities and Exchange Commission investigation of a pharmaceutical company facing allegations its executives engaged in stock manipulation before the company came into existence, clearing the case for trial.
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March 29, 2023
Cessna Insurer, Yellow Corp. Settle $1.9M Jet Damage Suit
Starr Indemnity & Liability Co. has reached a settlement with transportation company Yellow Corp. over coverage of $1.9 million in damage to two used jet engines being transported from Starr's insured, Cessna Aircraft Co.
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March 29, 2023
Insurer Not Liable For DUI Fatality, SC High Court Rules
The majority of the South Carolina Supreme Court found Wednesday that an individual representing a decedent in a drunken driving crash is not entitled to directly sue the insurer for failing to notify the state that a bar's liquor liability coverage was canceled.
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March 29, 2023
Allianz Unit Wants Court To Redo Order In $20M Flood Row
An Allianz unit asked an Indiana federal court to review its order denying the insurer an early exit from a $20 million flood coverage dispute, claiming the court misinterpreted its arguments to find that policy exclusions didn't apply to its $3 million share of liability.
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March 29, 2023
Hertz Wants Out Of Allstate Suit Over Crash Coverage
Hertz asked an Idaho federal judge to dismiss it from a coverage suit over a crash involving one of its rental cars, saying it has no controversy with Allstate, which initiated the case.
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March 28, 2023
Chubb's New Methane Policy Raises Doubts About Reach
Chubb's recent announcement that it will require policyholders in the fossil fuel industry to reduce methane emissions could spur on more insurers to adopt climate-friendly policies, but concerns remain about whether the move goes far enough, experts say.
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March 28, 2023
10th Circ. Revives RICO Suit Against Life Insurer
The Tenth Circuit revived a Racketeer Influenced and Corrupt Organizations Act suit against an insurer brought by consumers claiming it duped them into buying annuity products, finding Tuesday that the consumers plausibly alleged the company engaged in a fraudulent scheme by using misleading data in marketing materials to induce purchases.
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March 28, 2023
Wash. Insurance Commissioner Settles COVID Firing Suit
The Washington State Office of the Insurance Commissioner has agreed to pay $115,000 to settle claims brought by a former worker who alleged she was wrongly fired after the state agency denied her request to keep working from home due to a chronic lung disease that put her at elevated risk of contracting COVID-19.
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March 28, 2023
Bond Seller Wants Coverage Dispute Kept Alive
A bond seller urged an Arizona federal court to keep alive its suit accusing an insurance broker of breach of contract for causing it to be without coverage, saying dismissal would be inappropriate because of the existence of disputed facts.
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March 28, 2023
Liberty Doesn't Owe Coverage For Maine Hunting Accident
A Liberty Mutual unit does not owe coverage for a November 2017 hunting accident, a Maine federal court ruled, finding that the man who shot another individual was not an insured under a pair of homeowners policies issued to his mother and grandparents.
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March 28, 2023
Lyft, Travelers Escape Allstate Hit-And-Run Coverage Suit
Lyft and Travelers Indemnity Co. were able to escape from a coverage dispute brought by Allstate over a hit-and-run accident, but an Alaska federal court said Allstate can try again by suing a different insurer for the ride-hailing company.
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March 27, 2023
Hospital's $3M Employee Theft Claim Will Go To Trial
A jury will decide a hospital's suit against its insurer seeking coverage for a $3 million theft and fraud it alleged was perpetrated against it by its former vice president, an Illinois federal judge said.
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March 27, 2023
Chubb Unit Says It Owes No Coverage In SXSW Refund Row
A Chubb unit told the Fifth Circuit that a lower court properly applied a contractual liability exclusion to relieve it of any duty to defend music festival operator SXSW in a putative class action over refused refunds for the 2020 event canceled because of COIVD-19.
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March 27, 2023
Lost Crypto Not A Covered 'Physical' Loss, 4th Circ. Told
An individual's homeowners policy does not cover his loss of cryptocurrency to what he alleged was a scam because the lost cryptocurrency is not a "physical" loss covered by the policy, Lemonade Insurance Co. told the Fourth Circuit.

ChatGPT May Pose Cyber, Other Risks As Tech Evolves
The use of the generative artificial intelligence tool ChatGPT by both policyholders and threat actors could result in more effective cyberattacks, data breaches and other risks, although increased refinement and adoption of the tool is needed before such threats become significant, experts told Law360.

SVB Gets Stay In $73M Private Equity Fraud Coverage Dispute
A North Carolina federal court granted a stay in a dispute over whether Silicon Valley Bank has coverage for $73 million in losses stemming from its extension of credit to a private equity fund fraudster, allowing the bank's recently appointed receiver time to read up on the case.

Investment Co., Insurer Settle $4.5M D&O Suit
An investment firm and its insurer have settled a dispute over $4.5 million in defense costs incurred during arbitration proceedings with a former executive, a New York federal court said.
Expert Analysis
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Practical Tips For Managing Bank D&O Liability Risk
With the failures of Silicon Valley Bank and Signature Bank potentially inspiring regulators to increase scrutiny of management at similar institutions, banking directors and officers should mitigate personal liability risks through keen attention to sound banking practices and regulators' announced priorities, say attorneys at Perkins Coie.
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Establishing A Record Of Good Faith In Mediation
Viacom v. U.S. Specialty Insurance, and other recent cases, highlight the developing criteria for determining good faith participation in mediation, as well as several practical tips to establish such a record, says Richard Mason at MasonADR.
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Using ChatGPT To Handle Insurance Claims Is A Risky Move
ChatGPT gets some insurance law questions surprisingly wrong, and while it handles broader coverage concepts significantly better, using it to assist with coverage questions will likely lead to erroneous results and could leave insurers liable for bad faith, says Randy Maniloff at White and Williams.
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Del. Ruling Could Affect D&O Claims Beyond SPACs
A Delaware state court recently held in Clover Health v. Berkley Insurance that directors and officers of a post-merger entity were insured persons under a special-purpose acquisition company's D&O policy, a ruling that could have potential ramifications for future D&O claims in Delaware outside of SPAC deals, say Geoffrey Fehling and Janine Hanrahan at Hunton.
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A Missing Issue In 'Blank Space' Insurance Ruling
As Norwegian Hull Club v. North Star heads to trial in Florida federal court, the most interesting part of the court opinion denying summary judgment is the argument it doesn't address — contra proferentem, which could have been used to resolve the case's blank space ambiguity in the policyholder's favor, say Jeffrey Mikoni and Scott Greenspan at Pillsbury.
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High Court Ax Of Atty-Client Privilege Case Deepens Split
The U.S. Supreme Court's recent dismissal of In re: Grand Jury as improvidently granted maintains a three-way circuit split on the application of attorney-client privilege to multipurpose communications, although the justices have at least shown a desire to address it, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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The Wide Oversight Implications Of Del. McDonald's Ruling
The Delaware Chancery Court's recent ruling that a McDonald's officer had oversight obligations on par with directors has wide-reaching implications for Delaware corporate law, including precedent for the court to hear sexual harassment claims, say attorneys at Fried Frank.
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How Courts Are Clarifying D&O Policies' Bump-Up Provisions
The Seventh Circuit's recent decision in Komatsu Mining v. Columbia Casualty provides long-awaited appellate guidance on the inadequate consideration provision in directors and officers insurance — and the Fourth Circuit may provide more in its forthcoming ruling in Towers Watson v. National Union Fire Insurance, says Andrew Paliotta at Cozen O’Connor.
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Crypto Coverage After FTX Fall: Crime And Custody Coverage
Cryptocurrency firm FTX's recent implosion provides a case study for potential crypto exposure under traditional insurance policies, and suggests carriers should ask some basic underwriting questions, including whether a company engages in transactions involving cryptocurrencies or holds digital assets in custody, says Anjali Das at Wilson Elser.
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Wis. High Court Ruling May Open Door To Coverage Exception
The Wisconsin Supreme Court’s recent decision in Dostal v. Strand finding that an insurer had to defend a civil action following the defendant's criminal conviction on the same facts nonetheless may suggest an exception to the complaint test for determining an insurance company's defense obligation, say David Hollander and Clementine Uwabera at Stafford Rosenbaum.
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Crypto Coverage After FTX Fall: Accountant And Atty Liability
The recent fall of cryptocurrency firm FTX highlights complexities regarding accounting and tax reporting for digital assets, and reveals lawyers’ potential liability exposure when providing services to crypto firms — as a result, insurers may face unintended vulnerabilities related to this nebulous landscape, say Anjali Das and Farzana Ahmed at Wilson Elser.
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Anticipating Tech Market Volatility With R&W Policies
Technology executives, investors and their advisers should understand how representations and warranties insurance works ahead of a potential rise in claims activity and as deal makers focus on maximizing existing deals' value amid economic uncertainty, says Eric Larson at Morris Manning.
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Crypto Coverage After FTX Fall: D&O Liability
The fallout surrounding the recent implosion of cryptocurrency firm FTX highlights potential crypto coverage exposure — including in the area of directors and officers liability — for insurance carriers in the evolving and largely misunderstood world of digital assets, says Anjali Das at Wilson Elser.