Cases for the July 2013 Edition of CaseWatch: Insurance

Cases provided courtesy of LexisNexis.

Aioi Nissay Dowa Ins. Co. v. Prosight Specialty Mgmt. Co.

Ali v Federal

Atl. Cas. Ins. Co. v. Paszko Masonry, Inc

Atlantic Cas. Ins. Co. v. Paszko Masonry, Inc.

Bearden v. State Farm Fire & Casualty Co.,

CGS Indus. v. Charter Oak Fire Ins. Co.

Colonial Oil Industries, Inc. v. Indian Harbor Ins. Co.

Doe Run Res. Corp. v. Lexington Ins. Co.

Farm Bureau Life Insurance Co. v. Holmes Murphy & Associates, Inc.

Hackstaff Law Group, LLC v. Hartford Cas.

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U.K. Court puts Insurer to Bed Over Blanket Notification

McManus Seddon Runhams v European Risk Insurance Company, [2013] EWHC 18 (Ch)

A recent United Kingdom decision from the High Court of Justice held blanket notifications valid to claim coverage under a professional indemnity insurance (PII) policy. The case provides helpful guidance to law firms with PII on what constitutes a valid notification of circumstance under a PII policy.

In October 2010, the law firm of McManus Seddon Runhams (McManus) acquired Sekhon Firth (Sekhon). By May 2012, McManus discovered 17 breach of fiduciary duty …

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Cases for the June 2013 Edition of CaseWatch: Insurance

Cases provided courtesy of LexisNexis.

90-Day Rule – 45 CFR Parts 144, 146, and 147

4815 Dev. Corp. v. Harleysville Ins. Co.

Atl. Cas. Ins. Co. v. Cheyenne Country

Barlee v. First Horizon Nat’l Corp.

Burke v. Ability Ins. Co.

Chubb Custom Ins. Co. v. Space SystemsLoral, Inc.

City of New York v. Nova Cas. Co.

Dodd v. Am. Family Mut. Ins. Co.

Encore Receivables Mgmt. v. Ace Prop. & Cas. Ins. Co.

Federal Ins. Co. v. Sandusky

Gear Auto. v. Acceptance Indem. Ins. Co.

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Second Circuit Confirms Standard That Insurer Not Obligated To Defend And Indemnify In $96 Million Defamation Claim

First Advantage Litigation Consulting LLC v. American International Specialty Lines Insurance Co. et al.,
U.S. Court of Appeals for the Second Circuit

First Advantage Litigation Consulting LLC, (First Advantage) brought a declaratory judgment action against its insurers, American International Specialty Lines Insurance Co., Federal Insurance Co. and Zurich American Insurance Co. (collectively, insurers), seeking defense and indemnification in connection with a defamation action commenced by NuWave Investment Corp (NuWave). In 2006, NuWave sued First Advantage for $96 million in claimed damages stemming from allegedly defamatory …

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Court Finds that Ownership is indeed 9/10th of the Law in Rescission Case

PHL Variable Ins. Co. v. P. Bowie 2008 Irrevocable Trust
(1st Cir. (R.I.) May 13, 2013)
The First Circuit recently held that an insurer may retain life insurance premiums following a policy rescission to offset the loss it has suffered. The ruling is notable because courts typically require an insurer to refund an insured’s policy premium where a rescission is effected.

In PHL, an insurance broker submitted an application for life insurance for Peter Bowie. Bowie’s application represented that he was a self-employed …

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New Kid on the Block

It’s tough to be the new kid on the block as the Federal Insurance Office (FIO) is quickly finding out. FIO Director Michael McRaith had an idea and it wasn’t like the idea was bizarre or anything. Simply put – there appears to be a question, if not a problem, with life insurers using special purpose vehicles and captives to offload insurance reserves. The Federal Advisory Committee on Insurance should set up a task force to investigate. This is important enough that the U.S. Treasury

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Indiana Appeals Court Finds Ambiguity in Umbrella Policy, Results in $2 Million in Coverage

Gary Hammerstone et al. v. Indiana Insurance Co., (06A04-1211-PL-595 Court of Appeals of Indiana)
In 2009, plaintiff Gary Hammerstone injured his right hand and arm while trying to clear a clog in a Trac-Vac lawn and leaf vacuum he purchased in 2004. Mr. Hammerstone brought a lawsuit against the vacuum’s manufacturer, Palmor Products Inc. (Palmor), and Palmor’s distributors Northampton Farm Bureau Cooperative Association, and Canns-Bilco Distribution Inc. claiming that they negligently designed, manufactured, marketed, and distributed the vacuum.

Palmor provided notice of the underlying …

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