Specialty Lines

  • February 16, 2024

    Insurer Seeks To Cancel $15M Policy Over 'Human Life Wager'

    A life insurance company has urged a New Jersey federal court to void a $15 million policy it calls an illegal "human life wager" on a man whose death benefits a bank, rather than his own family.

  • February 16, 2024

    Therapy Co.'s Policy Lie Bars Fraud Coverage, 4th Circ. Says

    A defunct child therapy practice is not entitled to coverage for suits accusing one of the practice's employees of pretending to be licensed, the Fourth Circuit affirmed in a published opinion Friday, saying a material misrepresentation in the clinic's insurance applications warrants rescission of the policy.

  • February 15, 2024

    Damaged Champagne Cargo Row Can Proceed, Judge Says

    A New Jersey federal judge preserved the majority of a $930,000 coverage dispute over a damaged champagne shipment Thursday, denying a logistics company's bid for dismissal while giving an insurer the opportunity to put forth an alternate pleading.

  • February 15, 2024

    Club, Insurer Resolve Fiduciary Breach Coverage Row

    A country club owner, various club board members and Selective Insurance Co. agreed to dismiss their dispute Thursday in Massachusetts federal court over coverage for breach of contract and fiduciary duty claims that club investors lodged in arbitration, resolving the coverage case after reaching a settlement in January.

  • February 15, 2024

    Oil Trader Says Cargo Storage Expenses Are Covered

    An oil and gas trader slammed Liberty Mutual's attempt at an early win in a $2.4 million coverage dispute over losses related to a contaminated oil shipment, telling a New York federal court Thursday it is entitled to recover both barge storage expenses and attorney fees.

  • February 14, 2024

    Insurer Needn't Defend Landlord From Antitrust MDL

    A Washington state judge has ruled in favor of an insurer in a coverage dispute revolving around nearly 40 antitrust class action claims against landlords that have been combined into a multidistrict litigation case, finding that the insurer owes no defense coverage to an accused property manager.

  • February 14, 2024

    Contractor Owes $13M To Cover Virus Defaults, Insurer Says

    A Michigan-based insurer asked a Florida federal court Wednesday to grant a default final judgment in its indemnification suit against a contractor, seeking to force the company to cough up nearly $13 million to reimburse payments against its surety bonds and protect the insurer from future claims.

  • February 14, 2024

    Progressive Unit Seeks Win Against Uber, Widower Of Driver

    A Progressive unit asked a North Carolina federal court Wednesday to grant it a win in its attempt to get out of providing coverage for an UberEats driver who was killed in a car crash, asserting that its policy for Uber doesn't cover injuries caused by uninsured or underinsured motorists.

  • February 14, 2024

    Miami Law Firm Not Covered In Overbilling Row, Judge Says

    An insurer does not have to defend a Miami law firm in a lawsuit accusing it of overbilling a client, a Florida federal judge has ruled, finding that the underlying allegations do not constitute professional services as defined by the firm's policy.

  • 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."

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

Expert Analysis

  • What To Know About RWI In Acquisition And Divestiture Deals

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    As a slower pace of merger activity turns underwriters toward new industries, representations and warranties insurance policies are increasingly being written for acquisition and divestiture energy deals, making it important for contracting parties to understand how the RWI underwriting process works in this new sector, say attorneys at Haynes Boone.

  • SAG-AFTRA Contract Is A Landmark For AI And IP Interplay

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    SAG-AFTRA's recently ratified contract with the Alliance of Motion Picture and Television Producers introduced a framework to safeguard performers' intellectual property rights and set the stage for future discussions on how those rights interact with artificial intelligence — which should put entertainment businesses on alert for compliance, says Evynne Grover at QBE.

  • What R&W Insurance Access Means For Small-Cap M&A

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    As a slowdown in mergers and acquisitions has increased insurer appetite for underwriting small-cap transactions, buyers of small and midsize enterprises stand to benefit from easier access to representations and warranties insurance, which can add protection and reassurance for all parties involved in a deal, say Caroline Thee and Ewelina Mikocewicz at Taft Stettinius.

  • How Merck Settlement Can Inform Cyberinsurance Approach

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    This month's settlement in Merck v. ACE spotlights how cyber exclusions have evolved since the significant decision in the case — allowing for insurance coverage despite the presence of a policy war exclusion — and where else corporate risk managers may look for coverage in case of a cyberattack, say attorneys at McGuireWoods.

  • Mitigating Compliance And Litigation Risks Of Evolving Tech

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    Amid artificial intelligence and other technological advances, companies must prepare for the associated risks, including a growing suite of privacy regulations, enterprising class action theories and consumer protection challenges, and proliferating disclosure obligations, say attorneys at Eversheds Sutherland.

  • ESG Around The World: Canada

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    In Canada, multiple statutes, regulations, common law and industry guidance address environmental, social and governance considerations, with debate over ESG in the business realm potentially growing on the horizon, say attorneys at Blakes.

  • Insured Takeaways From 10th Circ. Interrelated Claims Ruling

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    The Tenth Circuit's recent ruling in American Southwest Mortgage v. Continental Casualty that multiple claims arising from consecutive audit years were interrelated — and thus subject to a per claim limit — creates a concerning precedent for policyholders, so companies should negotiate relevant policy language, says Michael Stockalper at Saxe Doernberger.

  • Consider A Key Insurance Tool For Environmental M&A Deals

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    Transactional liability insurance can be a useful risk allocation tool for completing mergers and acquisitions in the renewable energy and climate and clean technology sectors, though policies must be structured carefully to achieve maximum coverage, say Joseph Castelluccio and Paul de Bernier at Mayer Brown.

  • Policyholders Must Object To Insurer Reorganizations

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    When insurance companies reorganize, policies often take years to ultimately pay out a fraction of what is owed, so policyholders should organize and urge insurance commissioners to take action when retroactive reinsurance deals are announced, says Jonathan Terrell at KCIC.

  • Ill. BIPA Ruling May Spark Violation-Of-Law Exclusion Fight

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    An Illinois appeals court's recent holding in National Fire Insurance v. Visual Pak that a violation-of-law exclusion didn't preclude coverage for an underlying Biometric Information Privacy Act suit contradicts an earlier Seventh Circuit decision that aligns with long-standing insurance law principles — which may lead the state's high court to weigh in, says Tae Andrews at Pasich.

  • NY Wrongful Death Law Revamp Retains Original's Drawbacks

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    If approved by New York Gov. Kathy Hochul, the Grieving Families Act will transform the landscape of wrongful death law in New York by increasing the potential for damages, raising insurance premiums, burdening hospitals and courts, stifling the economy and subjecting parties to the unsettling effects of retroactive legislation, say attorneys at Shaub Ahmuty.

  • SEC, NY Cybersecurity Rules Create Complexity For Insurers

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    Two separate cybersecurity rules recently adopted by the New York Department of Financial Services and the U.S. Securities and Exchange Commission pose distinct challenges for insurance industry participants, with important interactions, and potential tensions, for those required to comply with both frameworks, say attorneys at Debevoise.

  • Exploring Middle-Market M&A Trends In 2023 And Beyond

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    Middle-market merger and acquisition activity this year was affected by a number of economic, legal and regulatory shifts, with certain trends pointing to favorable transaction conditions in 2024, say Jason Brauser and William Goodling at Stoel Rives.