Specialty Lines

  • March 09, 2023

    Broker Can't Trim $10M Insurance Suit, Staffing Co. Says

    An insurance broker shouldn't be able to trim claims brought against it by a medical staffing company as part of a $10 million lawsuit over coverage for an overbilling settlement, the staffing company told a Texas federal court.

  • March 08, 2023

    Insurer Wins In CDS Bench Trial With Lehman Brothers

    Lehman Brothers' bankrupt European unit on Wednesday lost a multiyear quest to claw back $485 million from an Assured Guaranty Ltd. unit that terminated 28 credit default swaps in 2009 during the global financial crisis, with a New York state judge finding in favor of the insurer on all counts.

  • March 08, 2023

    4th Circ. Gives Insurers Hope In Towers Watson Bump-Up Row

    A Fourth Circuit panel seemed receptive Wednesday to the idea that Towers Watson's 2016 merger transaction with Willis counts as an acquisition for the purposes of triggering a policy exclusion in an $80 million insurance dispute, with one judge noting that's probably how an ordinary person would classify the deal.

  • March 08, 2023

    Insurer Must Defend US Atty In Vaccination Status Dispute

    A Nationwide unit owes a former U.S. attorney defense coverage related to show cause proceedings and an investigation into alleged misrepresentations over his COVID-19 vaccination status, a Mississippi federal judge ruled, finding that an intentional acts exclusion doesn't apply.

  • March 08, 2023

    AIG Must Cover Full $32M Theft Scheme Loss, 8th Circ. Says

    An AIG unit must cover agriculture giant Cargill for over $32 million it lost from an employee embezzlement scheme, not just $3 million the employee pocketed herself, the Eighth Circuit affirmed, finding her grain price misrepresentations directly caused Cargill to lose the other $29 million.

  • March 08, 2023

    Oil Co. Can't Back Up Breach Of Contract Claim, Insurer Says

    An insurer asked a Texas federal court to reject an oil driller's breach of contract claim in a dispute over coverage of a well restoration, saying the company hasn't shown why the insurer had a duty to preapprove any method of well restoration under the policy.

  • March 08, 2023

    Mont. Insurer Drops Suit Against Atty Over Crucial 'Omission'

    A Montana insurance company that sued a policyholding attorney and her firm in Georgia federal court in a bid to avoid coverage of a malpractice claim stemming from a workplace discrimination dispute backed out of the case Tuesday, following claims that the attorney did not properly disclose key information.

  • March 07, 2023

    4th Circ. Hints At Remand In Insurance Attorney Fee Dispute

    A Fourth Circuit panel seemed likely to reverse a West Virginia court's finding that an AIG unit must pay all attorney fees a car dealership incurred in the sides' now-settled coverage dispute, with the judges hinting Tuesday at the need to remand the case for additional fact-finding.

  • March 07, 2023

    No Coverage For Farm's Spoiled Spuds Loss, ND Justices Say

    An insurer does not need to cover a farmer's losses stemming from his sale of seed potatoes later found to be contaminated with a herbicide, the North Dakota Supreme Court said, reversing a trial court finding.

  • March 07, 2023

    Insurer Drops Coverage Suit After HOA Satisfies Retention

    A homeowners association and its insurer have agreed to drop a dispute over whether a policy's retention applies after the insurer agreed to defend it for two underlying claims, they told a California federal court, saying a payment made in an underlying settlement makes the matter moot.

  • March 07, 2023

    Insurer's Claims In Construction Suit Fall Short, Judge Says

    An insurer's coverage fight over an underlying suit in which a subcontractor is accused of faulty concrete and welding work was thrown out by an Oklahoma federal court, finding that the insurer failed to adequately allege claims for declaratory judgment.

  • March 07, 2023

    New York Life Taps Longtime Atty As Compliance Chief

    New York Life Insurance Co. has appointed a new chief compliance officer with 20 years of experience at the company. 

  • March 06, 2023

    Justices Likely To Mull Key Maritime Rulings In Insurance Suit

    The U.S. Supreme Court's decision to hear a dispute over whether a Pennsylvania federal court was right to apply New York law in a case over yacht insurance gives the justices a chance to address a pair of long-established high court rulings in the maritime space, attorneys say.

  • March 06, 2023

    FCA Review's Coverage Impact Likely Will Be Limited

    The U.S. Supreme Court's review of whether the False Claims Act covers compliance lapses with "objectively reasonable" explanations will likely have limited impact on issues of insurance coverage despite its potential to drastically affect the underlying litigation, attorneys told Law360.

  • March 06, 2023

    Centene Escapes COVID Test Reimbursement Suit, For Now

    A medical provider's coverage lawsuit against insurance giant Centene Corp. over reimbursement for COVID-19 testing was tossed Monday by a Connecticut federal judge, who found that the medical provider had failed to establish personal jurisdiction.

  • March 06, 2023

    Insurer Says Policyholders Weren't Involved In Plane Crash

    QBE Insurance Co. became the latest insurer to ask a Louisiana federal court to free it from a fatal 2019 plane crash coverage suit, saying its policyholders weren't involved in the accident.

  • March 06, 2023

    Allstate Off The Hook In Undisclosed Leaky Roof Dispute

    Allstate was relieved of any coverage or defense obligations to a Washington couple accused of fraudulent inducement and negligence after failing to disclose roof damage during the sale of their house, a federal judge ruled, finding they intentionally failed to inform the buyer of the problem.

  • March 06, 2023

    Calif. General Liability Insurer Must Foot $2M Injury Settlement

    A California appeals panel found a general liability insurer isn't entitled to repayment from a workers' compensation insurer in connection with a $2 million settlement for a drunken-driving crash that significantly injured a man, because the risks each insurer covered were different.

  • March 06, 2023

    Walmart Sued For $1.37M Fire Damage From Stolen Flare Gun

    A Rhode Island insurance company sued Walmart Inc. for negligence in Oregon federal court, claiming the retail giant is liable for more than $1.37 million in fire damage caused by a shoplifted flare gun.

  • March 06, 2023

    Justices Will Untangle Yacht Insurance Choice-Of-Law Dispute

    The U.S. Supreme Court on Monday agreed to hear argument on whether a Pennsylvania federal court was right to apply New York law in a case questioning whether a grounded yacht merits coverage by insurance if its fire extinguishers hadn't met the insurer's standards.

  • March 03, 2023

    Truck Rental Co. Taking Unpaid-Premium Spat To 9th Circ.

    A truck rental company that was ordered to pay a Zurich unit nearly $191,000 after the insurer demanded an additional premium of roughly $215,000 following an audit is taking the case to the Ninth Circuit for review, the company told a California federal court Thursday.

  • March 03, 2023

    Investment Bank, Insurer Appeal $60K Stock Suit Ruling

    Stout Risius Ross and its insurer notified a Michigan federal court that they are each appealing a judgment that permitted the insurer to be reimbursed $60,000, which is only part of what it spent defending the advisory firm in an underlying stock suit.

  • March 03, 2023

    Snow Removal Co. Seeks Full Coverage For Email Fraud Loss

    A snow removal company that lost $358,000 in an email fraud scheme should have full coverage under its cyberinsurance policy, it told a Minnesota federal court Friday, arguing its insurer is improperly refusing to pay half that money on the basis that the company failed to follow verification procedures.

  • March 03, 2023

    Insurer Asks Judge To Ignore Ozy Media's Coverage Argument

    A California federal court should disregard a recent argument by Ozy Media and its CEO, who was arrested last month on federal fraud charges, in a bid to gain coverage of the CEO's legal bills, the company's insurer argued, saying they made the argument improperly.

  • March 03, 2023

    Policy Misrepresentation Row May Affect Texas Underwriting

    The Texas Supreme Court is expected to decide soon whether insurers seeking to rescind a policy based on a material misrepresentation must prove the insured's intent to deceive, in a case that could have ripple effects for how policies are underwritten in the state.

Expert Analysis

  • Anti-Kickback Circuit Split Holds Implications For Defendants

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    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.

  • 8th Circ. Ruling Raises Bar For Anti-Kickback FCA Claims

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    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.

  • Insurance Tips For Cos. Offering Reproductive Health Benefits

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    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.

  • Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption

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    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.

  • Understanding Legal Considerations In Cannabis M&A Deals

    Excerpt from Practical Guidance
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    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.

  • Cybersecurity Basics Are Key to Combating Ransomware

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    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.

  • How M&A Insurers Can Increase Smaller Deal Servicing

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    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.

  • Lessons From Calif. Liability Claim Recoupment Ruling

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    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.

  • Awaiting Critical Bankruptcy Decision For Surety Industry

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    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.

  • Bankruptcy Case May Help Define Surety Executory Contract

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    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.

  • Assessing NFT Insurance Coverage Options And Gaps

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    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.

  • Insurer Implications As 3 Climate Suits Return To State Courts

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    Three federal circuit courts recently remanded climate change lawsuits brought by state and local governments against major energy corporations back to state courts, where plaintiffs are more likely to succeed, thus significantly increasing their insurers' and reinsurers' exposure to defense costs and judgments, say José Umbert and Jason Reeves at Zelle. 

  • 6 Rulings Reinforce BIPA Coverage For Illinois Policyholders

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    Six well-reasoned recent decisions in the Northern District of Illinois have considerably strengthened policyholders’ arguments for commercial general liability coverage in lawsuits brought under the Illinois Biometric Information Privacy Act, say attorneys at Neal Gerber.