Insurance

  • February 11, 2009

    Mid-Continent Denies Duty To Defend Homebuilder

    Mid-Continent Casualty Co. has sued Greater Midwest Builders Ltd., seeking a judgment that it has no duty to defend or indemnify the developer in an underlying suit over allegedly defective townhomes because of certain insurance policy exclusions.

  • February 11, 2009

    Suit Over Unearned Credit Insurance Premiums Nixed

    Finding that individual issues with breach of contract claims overwhelm commonalities, a judge has denied class status and dismissed a case filed by a real estate investor against Protective Life Insurance Co. that alleged the insurer failed to pay back unearned premiums for credit insurance, which is designed to cover loans if a policyholder dies or becomes disabled.

  • February 11, 2009

    Zurich To Buy AIG Auto Insurance Unit For $2B

    American International Group Inc. is reportedly preparing to sell its auto insurance business to Zurich Financial Services AG for roughly $2 billion in a transaction that would mark the third unit the beleaguered insurance giant has shed since the beginning of the year.

  • February 11, 2009

    Anthem Settles Calif. Illegal Rescission Allegations

    Wellpoint Inc. subsidiary Anthem Blue Cross Life and Health Insurance Co. has agreed to a settlement deal with the California Department of Insurance that could be worth up to $15 million to quell allegations that Anthem improperly rescinded coverage for thousands of people.

  • February 11, 2009

    Class Certified In Car Rental Suit V. Nationwide

    A federal judge overseeing a lawsuit accusing Nationwide Mutual Insurance Co. of terminating policyholders' car rental benefits too soon after auto accidents has granted the plaintiffs' bid for class certification, but certified a narrower class than the plaintiffs had sought.

  • February 12, 2009

    PwC Off Hook In AIG Shareholder Fraud Suit

    A judge has granted independent auditor PricewaterhouseCoopers LLP immunity in the shareholder derivative litigation against American International Group Inc., but firmly rejected bids by former AIG executives – including former CEO Maurice R. Greenberg and former CFO Howard I. Smith – to have the suit tossed.

  • February 10, 2009

    Twin City Fights $1M Claim Over Key Legal Costs

    Twin City Fire Insurance Co. has asked a court to rule that it has no duty to pay Key Energy Services Inc. nearly $1 million to cover the costs of securities and derivatives class action settlements because the oil services company did not exhaust lower levels of excess directors and officers liability coverage.

  • February 10, 2009

    Travelers Dealt Blow In Coverage Spat

    A magistrate judge has handed National Union Insurance Co. of Pittsburgh a win in a long-standing battle with Travelers over whether the primary insurer is required to reimburse the secondary insurer $10 million in connection with a fire at a Kansas City Power and Light Co. facility.

  • February 11, 2009

    Final Defendant In SEC's MetLife Fraud Case Settles

    Federal regulators have settled a financial fraud case against three officers of MetLife Inc. subsidiary New England Financial after the last defendant agreed to a consent judgment entered in court Monday.

  • February 10, 2009

    AMA Hits Aetna, Cigna With Payment Fraud Suits

    Alleging that the insurers have systematically shorted both patients and physicians by using massaged cost data, a consortium of doctors led by the American Medical Association has filed putative class actions against Aetna Inc. and Cigna Corp. under antitrust and racketeering laws, as well as the Employee Retirement Income Security Act.

  • February 10, 2009

    AXA, Sales Reps Near $6.5M Deal In OT Class Suit

    AXA Equitable Life Insurance Co. has come a step closer to garnering preliminary approval for a $6.5 million settlement in a consolidated wage-and-hour collective and class action brought on behalf of current and former financial sales representatives, with a judge asking for more information on how the settlement fund would be divided.

  • February 10, 2009

    Boeing Off The Hook In 2 Satellite Arbitration Cases

    Boeing Co. has said it received favorable rulings in two arbitration proceedings that were brought by insurers seeking hundreds of millions of dollars in damages based on allegations including breach of contract and breach of warranty in connection with Boeing satellites.

  • February 9, 2009

    RenRe Accountant's Lifetime Injunction Tossed

    A federal judge has lifted a former RenaissanceRe Holdings Ltd. controller's lifetime ban from serving as an officer of a public company, ruling that the ban is unfair compared to the punishments against the co-defendants charged with participating in a sham reinsurance deal.

  • February 9, 2009

    Insurer Hits Tew Cardenas, Lawyer With $9M E&O Suit

    Aviation insurer U.S. Specialty Insurance Co. has sued law firm Tew Cardenas LLP and attorney William G. Burd, accusing them of giving bad legal advice before a $9 million settlement was reached in connection with a May 2005 hangar incident that left a Florida boy with permanent brain damage.

  • February 9, 2009

    Lloyd's, Others Fight Back In Spat Over Defense Costs

    Liability insurers of now-dissolved Jacksonville Shipyards Inc., including Lloyd's of London and Travelers Casualty and Surety Co., have asked a federal judge to rule that they are not liable for certain costs from silica and asbestos litigation related to one of the shipyard company’s subsidiaries, which was paid by excess insurers Stonewall Insurance Co. and Seaton Insurance Co.

  • February 9, 2009

    Insurer Has Duty To Defend Furmanite: Appeals Court

    A Texas appeals court has dismissed an insurer's claims that it has no duty to defend Furmanite America Inc. in a Louisiana toxic tort case, affirming an earlier trial court ruling on the long-standing coverage dispute.

  • February 10, 2009

    Insurance Practice: Reed Smith

    Litigation against financial institutions and investment advisers will likely increase as investors look to recoup their losses in the down economy, raising many questions about how and whether current insurance policies can cover such claims, according to Douglas Cameron, head of Reed Smith LLP’s Insurance Recovery Group.

  • February 9, 2009

    Drywall Co. Sues Excess Insurer Over Asbestos Cases

    Drywall company KCG Inc. has filed a lawsuit against Stonewall Insurance Co., claiming that the insurer is obligated to pay for KCG's defense and indemnification in hundreds of underlying lawsuits that allege physical harm from exposure to asbestos in building materials made by the company's predecessors.

  • February 9, 2009

    Reinsurer NICO Off Hook Over $12M In Surety Bonds

    A federal appeals court has ruled that a California shopping center can't collect over $12 million in surety bonds from National Indemnity Co., which served as the reinsurance company for the surety bonds' issuer, because the shopping center did not have a contract directly with NICO.

  • February 10, 2009

    Berkshire Hathaway Cos. Hit With RICO Suit

    California Pharmacy Management LLC has launched a suit against a slew of Berkshire Hathaway Inc. subsidiaries, alleging the workers’ compensation carriers, intent on driving the plaintiff out of business, are refusing to pay for millions of dollars of valid prescriptions.