Author: Thomas F. Segalla

Policy Conditions, Considerations, Construction, and Formation

Florida Court Of Appeals Denied Summary Judgment In Favor of Insurer And Remanded Breach Of Contract Claim Where Issues Of Fact Existed Whether Post-Suit Payment of Proceeds Constituted “Confession of Judgment” On Part Of The Insurer

Clifton v. United Casualty Ins. Co.

(Florida Court of Appeal, Second District, February 12, 2010)

 

The policyholder appealed final judgment entered in favor of the insurer in a breach of contract action arising out of damage suffered during Hurricane Charley. The primary issue involved whether an insurer’s post-suit payment of additional policy proceeds constitutes a “confession of judgment” and whether the filing of the suit acted as a “necessary catalyst” to resolve the dispute.

 

Specifically, in August 2004, the policyholder’s residence was damaged …

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Emerging Issues

New York State Superintendent of Insurance Discusses the Possible Re-Emergence of the New York Insurance Exchange

Last week in London, James Wrynn, New York's Superintendent of Insurance, discussed the possibility of reconstituting a New York Insurance Exchange during a panel conference at the invitation of the Insurance Insider.  While recognizing the challenges to a New York Insurance Exchange, Mr. Wrynn believes that such an exchange could be a tremendous asset in providing the flexibility and technological advancements to the claims process.

A copy of the article summarizing Mr. Wynn's discussion can be found here

Sharon Angelino, Tom Segalla and Dan Gerber

https://www.goldbergsegalla.com/attorneys/Angelino.html…

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Uncategorized

Airlines and Insurers Seek to Keep 9/11 Settlements Confidential

In re September 11 Litigation (S.D.N.Y February 5, 2010)

 

A number of airlines and insurers have jointly moved for an order rendering the amount of certain settlements and the allocation of such funds under seal. The movants contend that disclosure of such information will be misleading and undermine the reputation of the aviation industry. Moreover, it is asserted that disclosure of this information will potentially damage the prospects of completing settlement negotiations.

 

For a copy of the motion, click here…

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Directors and Officers

Insurer Required to Defend Directors and Officers Against Ponzi Claims

Pendergest-Holt v. Certain Underwriters at Lloyd's of London

(S.D. Tex. January 26, 2010)

 

The directors and officers of a corporation were indicted for involvement in an alleged Ponzi scheme, and the Securities and Exchange Commission commenced a civil action alleging that the insureds conspired to deceive investors and sold sham certificates of deposits ("CDs").  As an initial matter, the Court noted that the policy's Fraud Exclusion could not be a valid basis for the insurer's refusal to pay defense costs because the Fraud Exclusion explicitly requires a "final …

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Life, Health, Disability & ERISA / Professional Liability Monthly

Accidental Death and Dismemberment Policy Covered Death Caused by Medical Malpractice

Barnes v. Am. Int'l Life Assur. Co.  (S.D.N.Y., February 4, 2010)

Insured under a group accidental death and dismemberment insurance policy died after a cathe was improperly inserted in her chest, causing cardiac arrest. The insurer denied the claim arguing medical malpractice did not coverage medical malpractice and that her death was the result of sickness or disease. The district court in New York held that the insured's death was unintentional and unexpected and, therefore, an accident entitling the surviving spouse to benefits under …

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Directors and Officers

Tenth Circuit: Insured’s Coverage Claims for Ponzi Scheme Reinstated

Apartment Investment & Mgmt. Co. (“AIMCO”) v. Nutmeg Ins. Co.

(10th Cir. (Colo.) Feb. 2, 2010)

 

The Tenth Circuit Court of Appeals recently held that an insurer has a duty to defend its insured based on allegations contained in several separate but factually-related complaints. The policyholder, AIMCO, self-managed a real estate investment trust that provided property management services. Included within the services AIMCO offered was selection and procurement of necessary insurance coverage for the managed properties. AIMCO, in turn, retained an independent contractor …

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Environmental

Insurers Not Responsible for Gulf of Mexico Oil Spill

Jefferson Block 24 Oil & Gas LLC v. Aspen Ins. UK Ltd.

(E.D. La. January 29, 2010)

 

In November 2008, plaintiff filed a lawsuit claiming that defendants were obligated to reimburse it for nearly $3 million in cleanup costs relating to an oil spill in the Gulf of Mexico.  The leak occurred on November 2007 while plaintiff was testing a recently acquired pipeline.  Plaintiff responded to the leak from November 2007 until April 2008.  Plaintiff and its insurers disputed whether the pipeline …

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Uncategorized

Supreme Court Of Florida Held That Unsolicited “Blast-Faxing” Of Advertisements In Violation Of The Telephone Consumer Protection Act Is Covered Under A Commercial Liability Policy’s Advertising Injury Provision.

Penzer v. Transportation Ins. Co.

(Supreme Court of Florida, January 28, 2010)

 

This matter involved a certified question of Florida law submitted by the United States Court Of Appeals for the Eleventh Circuit concerning whether under Florida law, the sending of an unsolicited advertisement by fax, in violation of the federal Telephone Consumer Protection Act (“TCPA”) 47 USCA §277 (2001) is covered by a particular insurance policy provision.  Specifically, the certified question stated, “Does a commercial liability policy which provides coverage for ‘advertising …

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