Exclusions
Suicide Exclusion in Accidental Death Policy Did Not Violate State Law, Court Rules
A federal district court in North Carolina has ruled that a suicide exclusion in an accidental death insurance policy did not violate a state law limiting suicide exclusions in life insurance policies. Read More

Excess
“Payment of Losses,” Not Merely “Accrual of Liability,” Required to Trigger Excess Coverage, Second Circuit Holds
The U.S. Court of Appeals for the Second Circuit has ruled that the “plain language” of excess insurance policies required the “payment of losses” – not merely the accrual of liability – to trigger the excess coverage. Read More

Commercial General Liability
Connecticut Supreme Court Answers 3 Certified Questions in Construction Coverage Case
In response to certified questions, the Connecticut Supreme Court has held: (1) allegations of unintended defective construction work by a subcontractor that damages nondefective property may constitute an “occurrence” resulting in “property damage” under certain circumstances; however, defective work standing alone or repairs to that defective work do not constitute property damage and, therefore, are not covered under the commercial general liability (“CGL”) insurance policy at issue, and work by a contractor, as opposed to a subcontractor, is excluded from coverage under the terms of the policy; (2) under the CGL insurance policy at issue, it would not recognize a cause of action based on the insurer’s failure to conduct a discretionary investigation of claims for coverage; and (3) in global settlements encompassing multiple claims, the insured has the burden of proving that the settlement is reasonable in proportion to claims that, considered independently, the insurer had a duty to defend. Read More

Employee Benefits
U.S. Supreme Court: Federal Insurance Law Preempts Virginia Law Providing that Divorce Decree Automatically Revokes Insured’s Prior Designation of Spouse as Beneficiary
The U.S. Supreme Court has ruled that the Federal Employees’ Group Life Insurance Act of 1954 preempted a Virginia law that addressed the situation in which an employee’s marital status has changed, but the employee did not update his or her beneficiary designation before dying, by rendering a former spouse liable for insurance proceeds to whoever would have received them under applicable law but for the beneficiary designation. The decision is likely to have significant practical implications: the total amount of FEGLI insurance coverage in force, in 2010, was $824 billion.  Read More