Specialty Lines
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May 01, 2023
Embattled Wash. Insurance Chief Won't Seek Reelection
Washington Insurance Commissioner Mike Kreidler said Monday that he won't seek reelection next year, heralding the end of a long career in public service that was marred last year by reports revealing a yearslong pattern of abusive and racist behavior.
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May 01, 2023
Oil Co. Amends Climate Change Insurance Complaint
A Sunoco subsidiary that has already racked up a $1.4 million bill fighting climate change litigation brought by Hawaiian localities amended its federal complaint against its insurers in a case described as one of the first in which an oil company is seeking defense against claims related to global warming.
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May 01, 2023
Nationwide Unit Says No Coverage For Director Sued By CEO
A Nationwide unit asked a California federal judge to find that it has no duty to defend a startup's board director in a lawsuit from the company's founder and CEO, arguing that an exclusion in its directors and officers policy prevents coverage for disputes between insureds.
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May 01, 2023
Court Reverses Its Denial Of Insurer's Exclusion In Flood Case
An Indiana federal judge said the court went "too far" in finding an insurer's polychlorinated biphenyls policy exclusion was unenforceable in a $108 million flood damage suit brought by the owner of a manufacturing facility, granting the insurer the right to enforce the provision.
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May 01, 2023
Clyde & Co. Loses 20 Attys To New DC Insurance Boutique
A group of former Clyde & Co. LLP insurance partners have left the firm to launch a national boutique with an office in Washington, D.C., and are bringing along additional Clyde attorneys for the new venture, they said Monday.
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May 01, 2023
NJ Appeals Panel Upholds Merck's $1.4B Cyber Coverage Win
A New Jersey appeals court panel Monday affirmed a lower court's decision that a war exclusion in insurance policies issued to Merck & Co. Inc. does not bar $1.4 billion in coverage for losses stemming from the 2017 NotPetya attack.
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April 28, 2023
NAI Gets Partial Del. Win On CBS-Viacom Litigation Insurance
Shari E. Redstone, National Amusements Inc. and an NAI affiliate won a partial victory Friday in a Delaware Superior Court battle over potential partial insurance coverage for payouts in CBS-Viacom merger challenges that recently produced a $289.5 million pair of tentative Chancery Court stockholder settlements.
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April 28, 2023
Construction Co., Insurer Settle $258K Subcontractor Spat
A dispute between a Texas-based construction company and its insurer revolving around a subcontractor's costly mistake in a sewage project has been settled in federal court, though the company's action against the subcontractor remains active.
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April 28, 2023
Mich. Panel Says Progressive's Wording Expands PIP Benefits
A Progressive no-fault policy that is the focus of a vehicle crash coverage dispute can provide broader personal injury protection benefits than required by state law because of its use of the word "residence" over "domicile," a Michigan appeals court said.
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April 28, 2023
Hotel Urges 11th Circ. To Keep Insurer Duty Over Shower Film
The owner and manager of a New York hotel where an employee allegedly filmed a law school graduate guest while she was naked in the shower asked the Eleventh Circuit on Friday to affirm a Georgia federal judge's ruling they are owed a defense by their insurers.
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April 28, 2023
Judge Gives Texas Blue Cross Win In $2M Unpaid Claim Suit
A Texas federal judge has handed Blue Cross Blue Shield of Texas victory in a $2 million lawsuit brought by two lymph disorder treatment centers, ruling that one of the companies improperly introduced a new legal theory and the other failed to follow a court order.
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April 28, 2023
Lawmakers Question Top NFIP Official On Renewing Program
U.S. House lawmakers questioned a top Federal Emergency Management Agency official overseeing the nation's leading flood insurer on Friday, pushing for a long-term reauthorization of the insurer that would ensure its sustained health and wider coverage.
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April 28, 2023
Subway Franchisee Not Covered In Slaying Case, Chubb Says
A Chubb unit doesn't owe coverage for a $3 million lawsuit lodged by the family of a woman who was killed by an ex-boyfriend at the Subway restaurant where she worked, the insurer told a Texas federal court, saying exclusions in the franchisee's policy relieved it of coverage obligations.
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April 28, 2023
4th Circ. Nixes Atty Fees For Dealership In Insurance Spat
The Fourth Circuit sent a dispute over attorney fees back to a West Virginia district court on Friday, finding that the lower court judge didn't make a required finding about which costs were associated with a car dealer's breach of contract claim against an AIG unit.
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April 27, 2023
Gas Tank Cos. Want 3rd Circ. To Revive Coverage Suit
Two gas tank service companies are asking the Third Circuit to overturn a Pennsylvania federal court's ruling that Crum & Forster Specialty Insurance Co. doesn't owe coverage relating to a fatal tank explosion.
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April 27, 2023
Judge Orders Arbitration In Fla. Lightning Coverage Suit
A Florida federal judge on Thursday ordered the owner of a large Tampa apartment complex to arbitrate a dispute with its insurers over builders risk coverage for a lightning storm, a win for the insurers in their bid to compel arbitration.
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April 27, 2023
Insurers Want Out Of Contamination Suit Against Fertilizer Co.
Two FCCI Insurance units asked a Texas federal court to relieve them of any defense or indemnity obligations for a fertilizer manufacturer accused of violating state environmental laws, telling the court that coverage is barred because the underlying claims are outside their policies' scope.
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April 27, 2023
Life Insurer Seeks To Void Policy It Says Procured By Impostor
A South Carolina woman cannot receive the death benefits of a policy issued to a man alleged to be her family member, a life insurer told a South Carolina federal court, saying the policy was never valid because it was procured by an impostor.
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April 27, 2023
Ill. Panel Affirms Zurich Win In Employee Injury Coverage Row
A logistics company cannot get coverage from Zurich under its employer liability policy over an employee's claims that it deliberately caused his injuries, an Illinois state appeals court ruled, finding that even if West Virginia law applied to the dispute, as the company argued, the outcome would be the same.
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April 27, 2023
Furniture Co. Sues For Coverage Over $1M Wire Fraud Losses
An office furniture company sued its insurer in Pennsylvania federal court for denying coverage of more than $1 million in wire fraud losses stemming primarily from its fruitless international quest for medical gloves over WhatsApp during the height of the COVID-19 global pandemic.
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April 26, 2023
Insurer Seeks Second Chance In Damaged Goods Case
An insurer asked a New York federal court to give it a second crack at getting out of defending a warehouse in an underlying suit brought by a bed company over the storage of its merchandise, saying its policy does not require it to defend its insured.
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April 26, 2023
Scholastic Says Travelers Must Cover $13M Settlement
A Travelers unit has wrongfully refused to provide Scholastic Inc. coverage for more than $13 million remaining in a settlement with Vanderbilt University after the college sued the book publisher and distributor over trademark and copyright infringement, Scholastic told a New York federal court Wednesday.
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April 26, 2023
Wire Co. Seeks Defense For Podcast's False Advertising Suit
A wire and cable manufacturer told a Texas federal court that its insurer should have defended it in an underlying false advertising lawsuit, saying the personal and advertising injury claim it filed fits squarely within its commercial general liability policy.
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April 26, 2023
Accounting Co. Gets Case Stay In Fraud Coverage Spat
A coverage fight brought by an accounting group's insurer will be placed on hold pending underlying state court proceedings in litigation alleging that a former officer made unauthorized credit card charges, a California federal court ruled Tuesday.
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April 26, 2023
Insurance Attorney Named New Head Of Covington's SF Office
A seasoned insurance attorney has been named the new managing partner of Covington & Burling LLP's growing San Francisco office, where the firm has been operating since 1999.
Expert Analysis
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What Insureds Should Look For In Excess Policies
A recent California appellate court decision, Truck Insurance Exchange v. Kaiser Cement, demonstrates how courts will protect policyholder expectations against primary insurance carriers' actions that might restrict available excess coverage, and highlights how insureds should be diligent in reviewing excess policies on primary erosion, say Courtney Horrigan and Elizabeth Taylor at Reed Smith.
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Political Risk Insurance May Help Cos. Hurt By Russian War
As Russia’s war on Ukraine causes severe economic fallout, it’s crucial that U.S. companies with operations in the region understand what losses might be covered by their political risk insurance policies, and take steps to ensure that all available coverage is preserved and maximized, says Micah Skidmore at Haynes and Boone.
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Recent Rulings May Support False Claims Act Coverage
Following a banner year for U.S. Department of Justice recoveries in False Claims Act cases and with FCA investigations likely to grow, companies and executives facing FCA exposures may find support in recent policyholder-friendly decisions for both their underlying defense and related insurance claims, says Geoffrey Fehling at Hunton.
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Anticipating Cyberinsurance Wartime Exclusion Questions
Amid threats that Russia and Moscow-sponsored groups may increase malicious cyberattacks, businesses can mitigate risk by analyzing how war and hostilities exclusions apply to their insurance policies and maintaining a comprehensive record of government cyberattack warnings, say Steven Stransky at Thompson Hine, David Finz at Alliant and Rick Yocum at TrustedSec.
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Check Your Policy Fine Print For Cyberwarfare Coverage
Given increasing risks of cyberwarfare following Russia's invasion of Ukraine, and with a recent policyholder-friendly ruling in Merck v. ACE from a New Jersey state court, those insured should take notice of certain insurers' expansive changes to war exclusions to broadly include cyberattacks, say Philip He and Colin Kemp at Pillsbury.
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How To Negotiate Better D&O Coverage For Antitrust Matters
In light of the Federal Trade Commission's recent indication that it will ramp up antitrust enforcement, Geoffrey Fehling and Christopher Dufek at Hunton discuss several issues corporate policyholders should review when placing and renewing directors and officers insurance coverage.
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New 'Bad Faith' Claim Law Holds NJ Insurers Accountable
New Jersey’s recently enacted Insurance Fair Conduct Act, giving policyholders a bad faith cause of action for claims involving uninsured and underinsured motorist coverage, is an important step toward countering unfair insurer advantage and expanding consumer protections, say attorneys at K&L Gates.
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Insurance Implications Of Texas '8 Corners' Rulings
Two recent Texas Supreme Court opinions resolve a long-pending question by reaffirming the so-called eight-corners rule as the primary means for determining an insurer's duty to defend, which should provide greater consistency between future state and federal decisions, says Susan Kidwell at Locke Lord.
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Why I'll Miss Arguing Before Justice Breyer
Carter Phillips at Sidley shares some of his fondest memories of retiring Justice Stephen Breyer both inside and out of the courtroom, and explains why he thinks the justice’s multipronged questions during U.S. Supreme Court oral arguments were everything an advocate could ask for.
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Examining Event Cancellation Coverage As COVID Lingers
Recent pandemic-related postponements from the NBA, NFL and Grammys, coupled with COVID-19 being excluded from new event cancellation policies, highlight the need for event organizers to explore cancellation risks and how specialty coverage can serve as a tool for mitigation, say Jorge Aviles and Andrea DeField at Hunton.
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What Cos. Should Know About D&O Policy Landscape In 2022
Directors and officers liability insurance issues are likely to evolve this year against the backdrop of a new COVID-19 variant, rising inflation and other developments, particularly with regard to antitrust-related enforcement, special purpose acquisition companies, pandemic-related liability and cybersecurity, says Christina Lincoln at Robins Kaplan.
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Securing Coverage For Investors' Political Risk Claims In 2022
While recent world events highlight the need for foreign investors to protect themselves from losses related to political instability, businesses should be aware of the ways political risk insurers may seek to deny or delay payment of claims, say attorneys at McGuireWoods.
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How NJ Bad Faith Auto Insurance Bill Compares To Pa.'s
The recently enacted New Jersey Insurance Fair Conduct Act, is in some ways narrower and in other ways broader than Pennsylvania's notoriously strict bad faith statute and leaves open many fundamental questions, which took Pennsylvania decades of litigation to resolve, say Kristin Jones and Brian Callaway at Troutman Pepper.