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TODAY'S TOP DEVELOPMENTS Thursday, May 16, 2013

Industry news, expert analysis, and daily updates on the most significant insurance coverage legal developments—from the insurance and legal experts of The National Underwriter Company.


Personal Lines

Circuit Affirms Decision Allowing Insurer to Retain Policy Premium as Damages Despite Policy’s Recission
The U.S. Court of Appeals for the First Circuit has affirmed a district court’s decision allowing an insurance carrier to retain policy premiums as damages even where the life insurance policy was rescinded. The Case: PHL Variable Insurance Company brought an action to rescind a life insurance policy and for special damages incident to the rescission of that policy. The district court found that the defendant, The P. Bowie 2008 Irrevocable Trust, by and through its trustee, Louis E. Baldi, had made false representations to induce PHL to issue the policy.   Read More

Crime and Employee Dishonesty
Wife Not an Employee in Husband’s Dental Office for Purposes of Policy’s “Employee Dishonesty” Provision, Court Rules
A wife working in her husband’s dental office was not an employee within the meaning of his insurance policy’s “employee dishonesty” provision, and he therefore was not covered for losses allegedly suffered when she stole money from his practice, a federal district court in Alabama has ruled. The Case: Dr. Kenneth Chancey alleged that his ex-wife had stolen over $25,000 from his dental practice while they were married and she was performing the duties of an office manager. He filed a claim with The Cincinnati Insurance Companies.  Read More

Automobile Insurance
Alleged Misrepresentations during Presentation of Claim Doom Insured’s Bad Faith Suit
A federal district court in California has dismissed an insured’s bad faith claim against his insurer, finding that when the insurer denied the claim, it had a reasonable and legitimate basis for believing that the insured was concealing or misrepresenting material facts in connection with his claim.  Read More

Professional Liability Insurance
Insurer’s Default Judgment against Insureds Collaterally Estops Their Judgment Creditor’s Action against Insurer
A default judgment obtained by an insurer against its insureds acted to collaterally estop an action brought by their judgment creditor against the insurer, a federal district court in Georgia has ruled. The Case: In a declaratory judgment action against Vincent Fitzgerald, Rhett Burruss, and their law firm, Fitzgerald and Burruss, LLC, Hartford Accident and Indemnity Company obtained a default judgment from the U.S. District Court for the Northern District of Georgia that it had no duty to provide coverage under a professional liability policy and that the policy was rescinded.  Read More

View All Case Law Developments

Personal Lines

California Sues Texas Life Insurer over Unclaimed Property Law
The Securities and Exchange Commission and the Financial Industry Regulatory Authority have issued an investor alert entitled “Pension or Settlement Income Streams — What You Need to Know Before Buying or Selling Them.”  Read More

Health Insurance
Data Show Wide Range in Hospital Charges
The U.S. Department of Health and Human Services has released data that shows significant variation across the country and within communities in what hospitals charge for common in-patient services.  Read More

View All Legislative/Regulatory Developments
Steven A. Meyerowitz, ESQ.

Director, FC&S Legal
60px_newSpears Victoria Prussen Spears, ESQ.
Associate Director, FC&S Legal

FC&S Legal
Editorial Advisory Board

Mitchell J. Auslander, Willkie Farr & Gallagher LLP
Carrie Cope, Schuyler, Roche & Crisham, P.C.
Anjali C. Das, Wilson Elser
John F. Finnegan, Chadbourne & Parke LLP
Michele L. Jacobson, Stroock & Stroock & Lavan LLP
Timothy P. Law, Reed Smith LLP
Donald S. Malecki, Malecki, Deimling, Nielander & Associates, LLC
Cort T. Malone, Anderson Kill & Olick, P.C.
D. Milone, Kelley Drye & Warren LLP
Joseph P. Monteleone, Tressler LLP
Anne M. Murray, Rivkin Radler LLP
Jerold Oshinsky, Jenner & Block
Seth B. Schafler, Proskauer Rose LLP
David D. Thamann, The National Underwriter Company
Q–Re Announces New Management Team  Read More

NTSB Recommends Slashing Blood Alcohol Limits to Eliminate Alcohol-Impaired Driving  Read More

Climate Change and the Insurance Industry  Read More
MetLife Auto & Home Launches Expanded Identity Protection Services Including Social Media Compromise  Read More
Endurance Welcomes New E&S Excess Casualty Insurance Team  Read More

View All Industry News
Insurance Forms & Resources

Ask the Experts: PAP Coverage and Family Member Issues May, 2013


Browse our entire library of over 2,500 resources and forms.

9th Annual Canadian Captives & Corporate Insurance Strategies Summit  Read More

NYIA 2013 Annual Conference  Read More

Regulatory and Litigation Challenges to Lender-Placed Insurance 
Read More

View Full Calendar


Focus On: Coverage for Law Firm Victimized in Check Scam  Read More

Is Defective Construction an "Occurrence"? The Answer Isn't So Concrete  Read More

Insurance Coverage for Internet Copyright Claims  Read More

View Entire May Insurance Coverage Law Report
View Insurance Coverage Law Report Archives


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