Specialty Lines
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May 09, 2024
A Mother's Fight To Secure Insurance Benefits For Autism
After Lorri Unumb's son was diagnosed with autism, she spent over a decade drafting and securing legislative mandates for autism insurance benefits across the country. With Mother's Day on May 12, Law360 spoke with Unumb about how for her, motherhood included a calling to advocate for autism therapy coverage.
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May 09, 2024
Driver Class Certified In Progressive Total Loss Value Suit
A South Carolina federal judge has granted class certification to a group of drivers who suffered "total loss" accidents and allegedly had the value of their totaled cars lowballed by Progressive Direct Insurance Co., rejecting the insurer's arguments that the proposed class representative was unfit.
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May 07, 2024
Cashless Pay Co., Axis Toss Securities Action Coverage Row
An electronic payments company and Axis Insurance Co. voluntarily tossed their dispute Tuesday over coverage for a consolidated securities action and other claims alleging that certain company executives breached their fiduciary duties through financial reporting and accounting failures.
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May 07, 2024
Insurer Seeks Hearing Cancellation In Arbitrator Bias Dispute
An insurer seeking the removal of an arbitrator in a Bermuda reinsurance coverage dispute told the Second Circuit on Tuesday that a hearing on the issue should be canceled as an award was issued in the arbitration, rendering the dispute moot.
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May 07, 2024
Title Insurer Gets Partial Win Against Lender In Lien Dispute
A lender seeking coverage from its title insurer for mechanic's lien claims after the owner of a senior living community defaulted on its $26 million construction loan can only potentially get coverage under a disbursement endorsement in its policy, a Colorado federal court ruled, finding an exclusion applicable.
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May 06, 2024
Party Co.'s Trackless Train Claims Not Covered, Judge Says
An underwriter doesn't owe coverage to a Las Vegas-based party rental business for claims stemming from an overturned trackless train at a birthday party, a Nevada federal court has ruled, saying the company failed to maintain its business license at the time of the accident as required by the policy.
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May 06, 2024
Meet The Attys For NC Insurance Mogul Facing Bribery Retrial
Nearly two years after the Fourth Circuit exonerated Greg E. Lindberg on bribery and wire fraud charges, a team of Katten Muchin Rosenman LLP partners with prosecution experience has joined forces with prominent white collar defense lawyer James F. Wyatt lll in hopes of staving off a second conviction for the embattled insurance tycoon.
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May 06, 2024
Cheese Supplier, Chubb Unit Settle Salad Recall Coverage Suit
A New York federal court tossed a cheese supplier's suit seeking coverage from a Chubb unit for costs associated with the recall of tainted salad kits sold to Sam's Club, saying the parties have settled all claims.
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May 03, 2024
Freddie Mac, Insurer Settle $32M SEC Probe Coverage Dispute
Government-backed lender Freddie Mac told a Washington, D.C., federal court Friday that it has settled with an insurer in a $32 million coverage suit stemming from civil actions and federal probes around its collapse during the 2008 global financial crisis.
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May 03, 2024
How Big IP Judgment Winners Are Insuring 'Nuclear Verdicts'
Until a few years ago, intellectual property plaintiffs who scored large monetary awards — often referred to as "nuclear verdicts" — had to wait out a lengthy appellate process before knowing how much money they would end up with. But a relatively new type of insurance policy is allowing plaintiffs to insure part of their judgment in case it gets reduced or wiped out on appeal.
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May 03, 2024
Berkshire Hathaway Countersuit Tossed From Contractor Spat
A California federal judge tossed Berkshire Hathaway's counterclaims in a $17 million coverage dispute with a fiber optic network developer over an unfinished project, ruling that the insurer failed to meet heightened standards after claiming the developer conspired to prevent the contractor from performing its work.
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May 02, 2024
Farmers Face Uphill Fight In 5th Circ. Silo Coverage Row
A Texas farming cooperative faces an uphill battle in persuading the Fifth Circuit to undo a ruling that denied it coverage for a $1.3 million arbitration award for construction defects in their grain silos, experts told Law360.
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May 02, 2024
Insurers Are Covering Litigation Funders. Will It Catch On?
Insurers have started to cover losses from a third-party litigation funder's portfolio of plaintiff-side investments, experts tell Law360, calling into question the insurance industry's broader position that third-party litigation finance hikes carriers' litigation costs, thus requiring them to raise premiums for consumers.
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May 02, 2024
Coral Bleaching Highlights Value Of Reef Insurance
An ongoing bleaching event expected to weaken coral reefs worldwide should emphasize the importance of novel insurance products in helping to restore critical marine life following major storms, climate and insurance experts say.
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May 02, 2024
Insurance Litigation Week In Review
A treasure hunter got no coverage for his thwarted quest, LexisNexis was sued again for spying on drivers, a fatal drag race had its win reversed, a Chicago general contractor split the Seventh Circuit, and the Fifth Circuit wondered if a healthcare company's mistake was a claim. Here, Law360 takes a look at this week's top insurance news.
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May 02, 2024
Lloyd's Unit Gets Oil Well Repair Co.'s $4.5M Claim Tossed
A Texas federal court tossed an oil well repair company's claim seeking over $4.5 million in additional insured coverage for costs incurred from controlling a blown-out well, finding that the company doesn't have standing to bring an independent claim against the well owner's carrier.
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May 02, 2024
Atty In $119M Bad Faith Win Seeks Justice In And Out Of Court
Policyholder attorney Benjamin W. Massarsky of Miller Friel is part of a team that won over $119 million from insurers in a case thought to have garnered among the largest bad faith wins in the past 30 years. He also works pro bono to fight for accommodations for students with disabilities. Here, he shares where his passions for justice converge.
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May 02, 2024
2nd Circ. To Weigh Court's Role In Bermuda Arbitration Row
The Second Circuit will review Wednesday whether a New York federal court has the authority to remove an allegedly biased arbitrator in a Bermuda reinsurance arbitration, addressing the question of the federal court's limited role in international arbitration. Here, Law360 breaks down the case in advance of oral arguments.
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May 02, 2024
Insurance Industry Still Navigating Risks Created By Dobbs
The U.S. Supreme Court's overturning of Roe v. Wade has prompted new insurance policy offerings for healthcare providers and legislation to protect medical malpractice coverage in some states, with additional risks beyond the initial threat of litigation on the horizon, experts say.
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May 02, 2024
Sills Cummis Adds Pillsbury Atty As Insurance Group Leader
Sills Cummis & Gross PC has added an experienced insurance attorney from Pillsbury Winthrop Shaw Pittman LLP as a leader of two of its insurance groups.
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April 30, 2024
No Coverage For Foundation's Counsel In IP Row, Judge Says
A Kansas federal court tossed two counterclaims a Kansas State University-affiliated philanthropy lodged against its insurer over coverage for a man's claims that it stole his economic development ideas for the university, finding the insurer has no duty to pay for the philanthropy's own choice of counsel.
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April 29, 2024
5th Circ. Ponders If There Were Claims In 'Patient Mistake' Suit
If an insurer says there's no claim, might a claim still have been made, a skeptical Fifth Circuit panel pondered at oral arguments Monday, considering whether a healthcare company's settlement paid for mistakenly approving out-of-state treatment of a Florida Medicaid patient was covered by insurance.
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April 29, 2024
Paper Co.'s $31M Theft Claim Trimmed Before Coverage Trial
A paper manufacturer's insurer needn't pay $2.7 million of the over $31 million the manufacturer said it lost from an employee's theft scheme, a Tennessee federal court ruled while rejecting the insurer's position that the company's $15 million settlement with the employee breached its policy.
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April 29, 2024
Excess Insurer Seeks Inclusion In OpenText Merger Row
Allied World National Assurance asked a Michigan federal court to allow it to join a coverage dispute against its excess insured OpenText, maintaining that the software company's primary insurer will soon reach its limits on defense costs in the underlying class action over OpenText's merger with Covisint.
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April 26, 2024
Investors Ask 3rd Circ. To Revive Row With Maiden Holdings
Investors urged the Third Circuit to revive their suit claiming that reinsurance company Maiden Holdings Ltd. misrepresented its underwriting and risk management practices, saying the lower court's erroneous discovery restriction prevented them from proving their case.
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.