Specialty Lines
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May 18, 2023
Insurer Can't Get $10M Coverage Suit Moved To Tenn.
A Texas federal judge declined to transfer a $10 million insurance dispute brought by a medical staffing company over coverage for an overbilling settlement, holding that the Liberty Mutual unit that sought the transfer failed to show how a Tennessee federal court would be a more convenient setting.
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May 17, 2023
Insurer Gets Partial Win In $10M Egg-Freezing Failure Dispute
One insurer isn't obligated to cover the attorney fees another insurer paid in several hundred underlying lawsuits stemming from a failed cryogenic tank made to freeze human eggs and embryos, a California federal court said.
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May 17, 2023
Geico Dismisses New Jersey Doctor From $1M RICO Suit
Geico agreed to dismiss a New Jersey doctor from its Racketeer Influenced and Corrupt Organizations Act lawsuit alleging a group of health care providers billed the insurer for fraudulent services purportedly provided to people eligible for insurance coverage under no-fault insurance policies.
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May 17, 2023
Tulane Fund Drops Insurer From $19M COVID Coverage Suit
The Tulane University educational fund dropped an insurer Wednesday from its Louisiana federal lawsuit over roughly $19.4 million in pandemic-related losses, which seeks to recover the funds under its policies for medical catastrophe, evacuation and business interruption expenses.
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May 17, 2023
Wash. Fines Airbnb $20K For Acting As Unauthorized Insurer
Washington state's insurance commissioner cracked down on online rental property platform Airbnb, fining it $20,000 for acting as an unauthorized insurer and ordering it to obtain a surplus lines insurance policy in order to continue offering its host damage protection program.
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May 17, 2023
Legal Malpractice Payouts Continue To Rise, Report Says
Although the total volume of legal malpractice claims filed in 2022 remained fairly steady compared to 2021, a new report from insurance broker Ames & Gough shows that the costliness and severity of claims have continued to increase in line with a decadelong upward trend.
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May 17, 2023
Hinshaw Adds Ex-Sheehy Ware Insurance Litigator In Houston
Hinshaw & Culbertson LLP has boosted its global insurance services practice group with a partner in Houston who came aboard from Texas-based Sheehy Ware Pappas & Grubbs PC.
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May 17, 2023
GOP AGs Ask Insurers To Disclose ESG Commitments
Utah Attorney General Sean D. Reyes and 22 other U.S. attorneys general are demanding information from insurers in the Net-Zero Insurance Alliance, saying the group's work to reduce greenhouse gas emissions appears to violate antitrust and consumer protection laws.
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May 17, 2023
Shareholder Suit Coverage Spat Dismissed By Investment Co.
An investment holding company agreed to dismiss its coverage fight against its insurer over defense costs for underlying shareholder suits, according to filings in a New York federal court.
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May 16, 2023
Reinsurer Wants Out Of Sex Abuse Settlement Coverage Suit
A reinsurer for a Washington school district cooperative asked a federal judge to find that it isn't responsible for covering the cooperative's losses from settling sexual abuse suits filed against a member district and former teacher, asserting the alleged abuse ended before the reinsurer's policy was in effect.
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May 16, 2023
Insurer Says No Coverage For PI In Eavesdropping Suit
Crum & Forster Specialty Insurance Co. told an Illinois federal court Tuesday that it doesn't owe coverage to a private investigator over an underlying suit accusing the company of illegally violating a married couple's privacy.
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May 16, 2023
Swiss Re Seeks Early Appeal Of Lead Water Coverage Order
A Swiss Re unit asked a Pennsylvania federal court to enter final judgment on its holding that the insurer owes a defense to a utility in underlying lawsuits concerning the introduction of lead into a Chicago suburb's water supply, or otherwise certify an early appeal.
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May 16, 2023
Progressive Loses Bid To Label Crashes As 1 Accident
An Alabama federal judge rejected Progressive's attempt to end a coverage dispute with a motorist involved in a pair of auto collisions that left him seriously injured, finding the crashes to be separate occurrences that could earn stacked coverage.
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May 16, 2023
Investment Adviser Rips SEC's Insurance Annuity Power Grab
The U.S. Securities and Exchange Commission has gone too far in an enforcement action seeking to extend its authority to sales of insurance products, according to a Massachusetts investment adviser and insurance broker seeking dismissal from the civil suit.
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May 16, 2023
Oil Co.'s Bad Faith Claim Doesn't Hold Up, Insurer Says
An insurer asked a Texas federal court to throw out an oil driller's "alleged separate" bad faith claim relating to the insurer's refusal to consent to an assignment of an insurance claim, asserting that the oil driller hasn't even alleged that the insurer breached the anti-assignment provision.
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May 16, 2023
Storm Victim Fights Marketer's Bid To Duck Hurricane Suit
A Louisiana hurricane victim has told a Texas federal court that a legal marketing company cannot wiggle out of her proposed class action over its purported role in an alleged scheme to solicit clients for an embattled law firm, saying the business is subject to Texas law even if the would-be clients were in the Pelican State.
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May 15, 2023
11th Circ. Case Won't Help Home Depot Card Suit, Court Told
A recent Eleventh Circuit ruling that a policy's text trumps parties' intention when determining coverage does not support Home Depot's bid for $50 million in coverage for litigation over stolen credit card information, two insurers said.
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May 15, 2023
2nd Circ. Backs Denial Of Fees For Former PixarBio Attys
The Second Circuit on Monday agreed with a New York federal court that a pair of attorneys can't recover fees for their work representing PixarBio Corp. in a U.S. Securities and Exchange Commission probe, noting that the SEC was also looking into the lawyers at that time.
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May 15, 2023
Flooded Facility Can't Exclude Insurers' Experts In $108M Suit
An Indiana federal judge decided before a Tuesday trial in a $108 million flood insurance case to limit the testimony of a manufacturing facility's witness, but held off on excluding insurers' expert who saw confidential mediation documents, saying he would "address any appropriate sanction" at an evidentiary hearing.
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May 15, 2023
Insurer Wants Investment Company's Coverage Suit Tossed
An insurer continued to urge an Illinois federal court to toss an investing company's coverage fight over an underlying suit the company has against its manager, saying a recent order in the underlying matter confirms the company's claims in the coverage spat have no legal basis.
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May 15, 2023
Aramark Sports Settles Temp Worker Injury Coverage Dispute
Aramark Sports and Entertainment Services LLC and a staffing agency have settled a coverage dispute stemming from a suit brought by a temporary worker who said he was injured when he was thrown off a motorized cart driven by an Aramark employee under the influence of alcohol and marijuana.
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May 12, 2023
Insys Trustee Says Court Should Halt Insurance Coverage Suit
Insys Therapeutics' liquidation trust asked a Delaware bankruptcy judge on Friday to block an Arizona lawsuit over insurance coverage for claims against the opioid drugmaker's ex-officers and directors, saying the suit is barred by both bankruptcy precedent and Insys' Chapter 11 plan.
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May 12, 2023
Hotel Co. Should Remain Coverage Suit Plaintiff, Judge Says
A hotel management company's bid to substitute a sibling company as plaintiff in a coverage dispute over the mismanagement of two hotels should not be allowed, a Colorado federal magistrate judge recommended, saying a substitution at this late stage would essentially require starting over.
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May 12, 2023
Ariz. Insurer Wrongfully Refused Policy Stacking, Suit Claims
Safeco Insurance Co. broke the law by refusing to honor multiple coverages for an insured with multiple covered vehicles after a fatal car crash, according to a proposed class action filed in Arizona federal court.
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May 12, 2023
Wealth Manager Says Insurer Should Cover $1.5M Wire Fraud
A New York wealth manager who lost over $1.5 million after his employee was duped into fraudulently transferring large sums of money from his personal accounts told a Tennessee federal court his insurer should cover his losses.
Expert Analysis
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Insurers Should Beware Risks From Digital Asset Losses
Personal lines insurers should not underestimate the potential severity of future exposure to digital asset loss claims, and should consider protecting themselves with new underwriting practices and policy exclusions, say attorneys at Sidley.
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State Ransomware Payment Laws Raise Insurance Questions
Recent Florida and North Carolina statutory prohibitions on government agencies' ransomware payments will not just affect public entities' response to ransomware incidents, but also require consideration from insurers whose policies may cover ransom payments, say Ted Brown and Mallory Meaney at Wiley.
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Anti-Kickback Circuit Split Holds Implications For Defendants
The Eighth Circuit's recent decision in U.S. v. D.S. Medical represents a significant step toward holding plaintiffs to more exacting burdens of proof in Anti-Kickback Statute False Claims Act suits, and the outcome of the resulting circuit split could decrease estimated damages for defendants, say attorneys at Gibson Dunn.
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8th Circ. Ruling Raises Bar For Anti-Kickback FCA Claims
The Eighth Circuit's decision in U.S. v. D.S. Medical makes it more difficult for plaintiffs to claim that a violation of the Anti-Kickback Statute supports False Claims Act liability, but an emerging circuit split and uncertainty regarding evidentiary requirements must be considered when developing a defense strategy, say attorneys at Winston & Strawn.
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Insurance Tips For Cos. Offering Reproductive Health Benefits
Post-Dobbs state laws allowing legal action against anyone who facilitates an abortion could lead to claims against employers providing reproductive health benefits, so companies must ensure their insurance policies afford sufficient protection for any novel claims, say Heather Habes and Gretchen Hoff Varner at Covington.
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Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption
Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.
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Understanding Legal Considerations In Cannabis M&A Deals
Excerpt from Practical Guidance
Zachary Turke and Peter Park at Sheppard Mullin discuss the unique set of challenges for both buyers and sellers in cannabis industry merger and acquisition deals, given the rapidly changing economic conditions, the ever-changing regulatory landscape and new market entrants.
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Cybersecurity Basics Are Key to Combating Ransomware
Recent prohibitions on ransom payments and other public policy measures vastly underestimate the breadth and complexity of the ransomware problem and will only work if organizations adopt basic cyber defenses, says Kate Margolis at Bradley.
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How M&A Insurers Can Increase Smaller Deal Servicing
As the number of M&A deals in the $50 million to $200 million range continues to grow, lawyers, insurance brokers and clients must address the trend away from covering these smaller transactions by working together to make it easier for carriers to consider submissions and to insure these types of risks, says Hilary Weiss at Liberty Global.
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Lessons From Calif. Liability Claim Recoupment Ruling
A recent California federal court decision in Evanston Insurance v. Winstar Properties illustrates the perils of insurer recoupment and underscores the importance of assessing recoupment rights, if any, throughout the claims process, say Geoffrey Fehling and Veronica Adams at Hunton.
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Awaiting Critical Bankruptcy Decision For Surety Industry
The recent oral argument in Argonaut Insurance v. Falcon V offers the Fifth Circuit an opportunity to create a rule for multilateral contracts in bankruptcy and exposed the common misconception that a surety assumes the risk of the principal's nonperformance when it issues a bond, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.
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Bankruptcy Case May Help Define Surety Executory Contract
Next week’s Fifth Circuit oral argument in Argonaut Insurance v. Falcon V is of great interest to the surety industry as this case presents an opportunity for the court to address several unsettled questions on whether a tripartite arrangement, such as a surety bond program, is an executory contract for bankruptcy purposes, say Lisa Tancredi at Womble Bond and Laura Murphy at Travelers.
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Assessing NFT Insurance Coverage Options And Gaps
Because non-fungible tokens do not come bundled with insurance policies, and until NFT-specific insurance policies become more common, NFT owners should proactively protect against risk by drawing upon existing frameworks, despite potential coverage gaps, say Brian Scarbrough and Edward Crouse at Jenner & Block.