Specialty Lines
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February 13, 2024
Insurers Must Pay Pharma Co. Defense Costs In SEC Probe
A drug development company formed by a merger is entitled to insurance payments for expenses it paid two of its former officers in connection with federal subpoenas because the insurer failed to show that an exclusion applied, a California federal judge ruled Monday.
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February 13, 2024
CEO Needn't Consent To CFO's Settlement, NY Court Says
A sporting goods company's former CEO does not get a say in the former CFO's $2.8 million settlement with a liquidating trust just because they're both insured under the same directors and officers policy, a New York federal judge ruled, calling the ex-CEO's interpretation of the policy "unreasonable and illogical."
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February 13, 2024
Insurer Wants Security Cos. To Repay Assault Defense
An insurer said it does not owe coverage to two security service companies facing several lawsuits filed by grocery store customers who claim they were battered by security guards, telling a California federal court that the companies owe it reimbursement because their policies don't cover bodily injuries.
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February 13, 2024
OpenText Wants Out Of Class Action Coverage Suit
OpenText told a Michigan federal court it should be dismissed from an insurer's suit seeking to avoid coverage of a class action from former Covisint shareholders alleging an unfair merger, saying it's not involved in the underlying case and its only alleged connection is that it acquired outstanding Covisint stock.
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February 13, 2024
Life Insurer Failed To Secure Data From Hack, Class Says
A life insurance provider and its parent company failed to protect sensitive customer information from a data breach, a proposed class action told an Indiana federal court, saying the parent company was hacked via a SIM swapping scheme targeting a senior employee.
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February 12, 2024
Insurer Says No Coverage For Idaho Murderer And Family
A mentally ill suspected cannibal and his wealthy mining family do not have insurance coverage for a wrongful death suit brought on behalf of a murdered, mutilated groundskeeper and his family, the insurer told an Idaho federal court.
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February 12, 2024
Consulting Firm Says Ex-Partner Stole Captive Insurance Biz
A consulting firm that assists in establishing captive insurance companies told a Colorado federal court that its former business partner breached its contract by working behind the firm's back to snag its clients and sabotage its business relationships, depriving the firm of both business opportunities and potential commission.
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February 12, 2024
Panel Slams Life Insurer's 'Extreme' View Of Child Benefits
A California appeals court panel challenged a life insurer's "extreme" view that its policy was limited to biological children and excluded coverage for the murdered child of the policyholder's fiancée, reinstating several of the parent's claims that were dismissed by a lower court.
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February 12, 2024
Three-State Test Critical To Evaluating Carrier Climate Risk
An analysis finding that insurers' investment portfolios are at risk of losing billions of dollars under delayed climate-transition plans is an important step to fully understanding how well carriers' business activities are aligned with climate goals, experts say.
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February 12, 2024
Geico Says Medical Fraudsters Nabbed $1.1M In Auto Benefits
Several unlicensed individuals submitted hundreds of fraudulent charges for services provided to Geico-insured car accident victims, the insurer has alleged in New York federal court, claiming it lost more than $1.1 million in the no-fault insurance fraud scheme.
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February 09, 2024
2nd Circ. Affirms Starr Can't Sue To Defend Coverage Denial
The Second Circuit on Friday refused to revive Starr Indemnity & Liability Co.'s suit, which a district court had concluded the insurer used to defend its decision to deny a clothing company coverage for stolen and water-damaged goods.
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February 09, 2024
4th Circ. Atty Fraud Ruling Limits Criminal Defense Coverage
The Fourth Circuit pushed criminal matters to the outer margins of professional liability insurance as it finalized its decision affirming a Maryland attorney is not entitled to coverage of defense costs from charges that he defrauded financial institutions.
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February 09, 2024
New York Teacher Pays $75K For Mock Slave Auction Harm
A northern New York teacher will pay $75,000 for holding a mock slave auction of Black students in her classroom, settling a federal suit over a lesson a 10-year-old student's mother said emotionally damaged her son.
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February 09, 2024
Adviser Asks 4th Circ. To Rethink Defamation Coverage Denial
An investment adviser asked the Fourth Circuit to rethink its decision affirming a lower court’s ruling that she was not entitled to coverage under her firm's professional liability insurance policy, saying that the opinion "defies any logic" and contradicts settled South Carolina law.
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February 09, 2024
Liberty Mutual Bailed On Wire Fraud Coverage, Agency Says
Liberty Mutual wrongly denied crime coverage to an insurance agency after it lost more than $228,000 because of wire fraud, the agency alleged in a suit filed in Virgin Islands federal court.
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February 08, 2024
Texas Adjuster No Longer To Pretend To Be Lloyd's Of London
An insurance adjuster who hijacked the good name of British underwriting giant Lloyd's of London after blaming it for lost compensation agreed in Texas federal court to shut down businesses he opened in its name.
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February 08, 2024
9th Circ. Affirms Hiscox's Win In Design Co. CEO Fraud Row
Hiscox Insurance Co. does not have to cover a design and marketing company's $850,000 arbitration award to a former CEO over alleged fraud, the Ninth Circuit ruled Thursday, finding that the arbitrator's decision qualified as a final adjudication that triggered a fraud exclusion in its policy.
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February 08, 2024
11th Circ. Rejects $60M Liposuction Death Coverage Plea
The Eleventh Circuit affirmed on Thursday a district court's decision rejecting a man's request to recover a $60 million judgment from a medical practice's insurer for a liposuction-related death, finding that the practice's coverage was already diminished to the point of exhaustion.
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February 08, 2024
Insurance Orgs. Say Bill Would Prevent CFPB Overreach
Bipartisan legislation seeking to clarify the powers of the Consumer Financial Protection Bureau has drawn support from insurance regulators and industry trade groups who say the bureau has encroached upon state-based insurance regulation despite clear statutory limitations.
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February 08, 2024
Broker Hit With Suit Over Data Breach Affecting 1.5 Million
A California insurance broker is facing a proposed class action filed Thursday in federal court accusing the company of failing to keep the health and personal information of more than 1.5 million customers safe from exposure in an August cyberattack.
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February 08, 2024
NYC Jet Skier's Death Suit Not Covered, Insurer Says
A jet ski tour company's row with the estate of a customer who died while on a tour does not qualify for defense or indemnity coverage, the company's insurer argued to a New York federal court, asserting that the company's alleged errors and omissions preclude coverage under its policy.
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February 08, 2024
Insurer Improperly Settled Shooting Claims, Court Told
A Seattle-based housing provider said its primary insurer improperly tendered policy limits to settle two underlying claims alleging the provider was liable for deadly shootings near its apartment buildings in Georgia, telling a Washington state court that its insurer's actions have diluted its coverage for other claims.
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February 07, 2024
Insurer Ducks Some Coverage Of Dredge Tank Defect Suit
A Wisconsin federal judge Wednesday ruled partially in favor of an insurer seeking a declaration that it needn't cover a metal fabricator's defense in an underlying arbitration over allegedly defective dredge tanks.
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February 07, 2024
Insurer's Suit Over Class Action Coverage Early, Covisint Says
An insurer's lawsuit seeking to dodge coverage for an underlying shareholder class action alleging an unfair merger should be dismissed, former Covisint executives told a Michigan federal court, saying the issue of coverage is not ripe for dispute.
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February 07, 2024
NC Panel Reverses Doctor's Malpractice Coverage Win
The North Carolina Court of Appeals reversed a trial court’s decision that found a doctor was entitled to defense coverage under his medical malpractice policy for a state medical board investigation, ruling that the doctor failed to timely notify the insurer of the investigation and therefore did not deserve coverage.
Expert Analysis
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What SPAC Litigation Trends Could Mean For D&O Insurance
A look at the last two and a half years of securities litigation related to special purpose acquisition companies suggests that directors and officers insurance policyholders should prepare to confront coverage issues, particularly given the hardening D&O insurance market and the anticipated increase in regulatory oversight, say Huiyi Chen and David Kroeger at Jenner & Block.
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The Need For Insurance Options To Protect NFTs
Until insurance companies offer crucial protections to cover the unique risks in the nonfungible token market, NFT owners, buyers, marketplaces, wallet providers and server farms remain exposed to potentially significant hazards, say attorneys at Pillsbury.
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An Insurer's Guide To Policyholder Bankruptcy
Given the increased likelihood of policyholders filing bankruptcy petitions in the wake of the pandemic, insurance professionals must be aware of five basic principles when dealing with an insured in bankruptcy, says Eric Fitzgerald at Goldberg Segalla.
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COVID Rulings May Support Ransomware Insurance Denials
A recent spate of pandemic-related insurance decisions — where federal courts found that a temporary inability to use property doesn't qualify as physical loss or damage for coverage purposes — may be used as favorable precedent by cyber insurers denying ransomware loss claims for temporary inability to access data, say Thomas Caswell and Peter Kelly Golfman at Zelle.
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Why Legacy Insurance May Not Protect Adopters Of Bitcoin
Evidenced by El Salvador's adoption of the Bitcoin standard this week, there is an emerging need for insurance products to cover the risk of owning and holding the digital asset, as it may not fall into the protected categories in legacy insurance products, say attorneys at Mound Cotton.
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Ill. BIPA Ruling Marks Critical Win For Silent Cyber Coverage
The Illinois Supreme Court's recent decision in West Bend Mutual v. Krishna Schaumburg Tan, confirming that commercial general liability policies do not have to include specific language to cover claims under the Biometric Information Privacy Act, represents a critical victory for policyholders, but leaves unresolved issues in the battle over BIPA coverage, says Tae Andrews at Miller Friel.
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New Ruling Means Ky. Insurers May Rely On Notice Deadlines
The Kentucky Court of Appeals recently resolved a matter of first impression in Darwin National v. Kentucky State University, deciding that an insurance claim made outside the specified 90-day reporting period was late and thus properly recognizing that the reporting requirement in a claims-made-and-reported policy reflects a bargained-for condition to coverage, say Kristi Nolley and Lindsey Dean at BatesCarey.
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How D&O Coverage Fits Into Diversity Claim Mitigation
As companies face a shift in the directors and officers insurance market following a spate of recent shareholder suits over lack of diversity in corporate leadership, executive teams should review D&O policy coverage while implementing diversity initiatives that will effect meaningful, long-term change, say Natasha Romagnoli and Hannah Ahn at Blank Rome.
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D&O Insurance Implications From Tesla's Stock Drop Suit
A recent shareholder stock drop lawsuit against Tesla showcases the legal perils that can follow companies' social media missteps, and highlights the importance of directors and officers liability insurance in the current age of political polarization, says Tae Andrews at Miller Friel.
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Tips For Managing Cybersecurity And Privacy Risks In M&A
Cybersecurity and privacy issues in M&A transactions should no longer be an afterthought and should be treated on equal footing as other parts of the due diligence process, like tax, real estate and intellectual property, say David Kessler and Anna Rudawski at Norton Rose.
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6 D&O Provisions To Consider When Buying SPAC Insurance
As directors and officers insurance strives to keep up with the unique risk profiles of special purpose acquisition companies, D&O policy language distinctions can make a critical difference in whether claims against SPACs are covered, says Stephen Raptis at Haynes and Boone.
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Del. Rulings Guide On D&O Insurance For Corporate Fraud
Two recent Delaware decisions chart a helpful path for policyholders seeking directors and officers coverage for incidents involving fraudulent conduct, and also demonstrate the flexibility afforded by choice-of-law clauses, say Brian Scarbrough and Eric Fleddermann at Jenner & Block.
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Boiler And Machinery Insurance Can Boost Cyber Coverage
Companies affected by cybersecurity incidents may be covered by their boiler and machinery insurance, which shares many similarities with modern cyber insurance offerings and may apply despite exclusions specifying certain forms of cyber coverage, say attorneys at Cooley.