Category: Emerging Issues

Land O’ Lakes, Inc. v. Employers Mutual Liability Ins. Co., Case No. 09-CV-0693, 2010 U.S. Dist. LEXIS 124817 (D. Minn., Nov. 24, 2010).

The U.S. District Court for the District of Minnesota recently ruled that a CGL policy issued to a named insured more than a decade before the named insured merged with another entity provided coverage for environmental cleanup costs of the non-named entity for contamination that occurred during the policy period. Travelers insured Land O’ Lakes from 1964 through 1982 under successive CGL …

Wednesday, Sun Life announced that Sun Life Assurance Company of Canada is selling its life reinsurance business to Warren Buffet's Berkshire Hathaway Life Co. of Nebraska.  Sun Life's CEO is quoted in the company's press release as stating “Our reinsurance business is profitable, but it is not a growth area for Sun Life Financial and this transaction releases capital which can be put to work in other businesses.”  The transaction is expected to be completed by December 31, 2010.

 Sun Life reinsures approximately $113 billion (Canadian) in life …

It is becoming more and more apparent that by utilizing social networking tools, claim professionals increase the chance of successful claim resolution. One must, however, understand the processes and have a strategy.  For an interesting article on the subject, click here

By Daniel W. Gerber, Richard J. Cohen, and Tamara C. Bigford

https://www.goldbergsegalla.com/attorneys/Gerber.html

https://www.goldbergsegalla.com/attorneys/Cohen.html

https://bsocialmedia.com/?p=16

 …

TRAVELERS V. NATIONAL UNION (8^TH Cir. September 2, 2010)

The insured, KCPL, suffered a loss estimated at $452 million, a large segment of which was uninsured.  It maintained a $200 million primary policy with National Union and a $100 million excess policy with Travelers.

Following the loss, National Union and KCPL invited Travelers to enter into an agreement regarding subrogation.  Travelers declined, stating it did not want to send the "wrong message" that the loss would reach its excess policy limits.  National …

MYRON CORPORATION V. ATLANTIC MUTUAL INSURANCE CO.

(SUPPREME COURT OF NEW JERSEY, JULY 27, 2010)

New Jersey Rule 4:42-9(a)(6) allows fee shifting in “an action upon a liability or indemnity policy of insurance in favor of a successful claimant.”  The insured, a New Jersey company, was sued for blast faxes sent allegedly in violation of the Telephone Consumer Protection Act of 1991 and Illinois consumer protection laws.  It sought defense and indemnity from its insurer, who defended under a reservation of rights.

When …

U.S. ex rel. Loughren v. Unum Group

(1^st Cir. (Mass.) July 29, 2010)

Patrick J. Loughran, as relator, brought a lawsuit under the qui tam provisions of the False Claims Act, alleging that Unum Group (“Unum”) had burdened the Social Security Administration (“SSA”) by knowingly causing people to file baseless applications for Social Security disability insurance.  Unum allegedly had information in its claims files that the applicants had capacity for work under the SSA, but Unum still required them to apply for …

The Governor of Louisiana, Bobby Jindal, has signed a new law into effect that prohibits insurance companies from cancelling the policies of homeowners who have toxic Chinese drywall in their homes.  The drywall, which can corrode electrical equipment and fill homes with a rotten egg smell, is difficult and expensive to remove.  Thousands of complaints were received from homeowners across the United States who say that toxic Chinese wallboard imported between 2004 and 2007 releases sulfuric odors, causes health problems, and corrodes wiring and …

Reinsurance Magazine unveiled its Hot List and named Goldberg Segalla LLP the 6th most influential law firm in the world of reinsurance.  All of us here at the Insurance and Reinsurance Report are extremely proud and honored by this designation.   

Jeff Kingsley and Dan Gerber…

Felman Prod., Inc. v. Industrual Risk Ins.

(S.D. W.Va. July 23, 2010)

A federal judge ruled that an insured claiming $39 million in business losses waived the attorney-client privilege protecting an enormous number of emails, including an email between the insured’s human resource manager and its attorney. In the email, the human resources manager asked the insured’s attorney whether to ask customers to backdate contracts in order to produce evidence for the purposes of its insurance claim.

The action centers on a business …

Granite State Ins. Co. v. American Bldg. Materials  Inc.

(M.D. Fla. July 13, 2010)

Two insurers have filed suit against their insured, American Building Materials Inc. (“ABM”), a drywall supplier, and KB Home Inc., alleging that their policies do not cover claims arising from defective drywall installed in homes constructed by KB Home.

In 2009, ABM reported 35 homeowner claims to the plaintiff insurers. The claims arose from the “unusual release of sulfide gases” from ABM-supplied drywall used in the construction of …