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TODAY'S TOP DEVELOPMENTS Tuesday, July 1, 2014

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.


Umbrella Carriers Are Liable for Insured’s Post-Hurricane “Removal of Debris” Damages, Circuit Finds
The U.S. Court of Appeals for the Fifth Circuit, reversing a district court’s decision, has ruled that four umbrella insurance carriers were liable for removal of debris expenses an energy exploration and development company said it had incurred as a result of Hurricane Ike. The circuit court rejected the umbrella carriers’ contention that their policies only took effect if the insured’s underlying/primary insurance was exhausted by claims that would be covered by the umbrella policies. Read More

Health Insurance

South Carolina Supreme Court Limits Retroactivity of State Law Governing Supplemental Health Insurance Policies
The South Carolina Supreme Court, in response to questions certified to it by a federal district court, has ruled that a state law governing supplemental health insurance policies could not be applied retroactively to a policy that was in effect prior to the effective dates of the state law. Read More

Commercial General Liability
Montana Supreme Court Asked to Decide Whether Insurer Must Demonstrate Prejudice from Late Notice to Avoid Duty to Defend and Indemnify
The U.S. Court of Appeals for the Ninth Circuit has asked the Montana Supreme Court to decide whether, in a case involving a claim of damages by a third party, an insurer that did not receive timely notice according to the terms of an insurance policy must demonstrate prejudice from the lack of notice to avoid defense and indemnification of the insured. Read More

Homeowners Find Flood Claim Doomed By Their Failure to File Proofs of Loss or to Timely Bring Suit
A federal district court in Pennsylvania has granted summary judgment to an insurance carrier after finding that two homeowners had failed to file proofs of loss documenting their claims that their home’s foundation and heating system had been damaged in a flood or to timely bring suit against their insurer. Read More

View All Case Law Developments


Massachusetts Senate, Joining the House, Passes Bill to Cap Flood Insurance Rates
The Massachusetts Senate has passed a flood insurance bill that would prohibit creditors from requiring homeowners to purchase flood insurance in an amount that exceeds the outstanding balance of their mortgage, requires coverage for contents, or includes a deductible of less than $5,000. Read More

Homeowners Insurance

OIG Report Highlights “Considerable Financial Harm” to Fannie Mae and Freddie Mac in Lender-Placed Insurance Market
A report by the Federal Housing Finance Agency Office of Inspector General has found that Fannie Mae and Freddie Mac have suffered “considerable financial harm” in the lender-placed insurance market and recommends that the FHFA “assess the merits of litigation” by Fannie and Freddie against their servicers and LPI providers “to remedy potential damages caused by past abuses in the LPI market and, then, take appropriate action in this regard.” Read More

View All Legislative/Regulatory Developments
Assurant Solutions and Service Corporation International Renew Partnership to Provide Preneed Funeral Insurance Read More

AmTrust Financial to Acquire Comp Options Insurance Company 
Read More

Aspen Mails Revocation Materials to Shareholders as Endurance Counters with Letter of Its Own 
Read More

Northwestern Mutual Life to Sell Russell Investments to London Stock Exchange 
Read More

M. Steven Levy Named President of Reinsurance Division of Munich Reinsurance America Read More

View All Industry News
Third Party Over Actions


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View Entire July Insurance Coverage Law Report
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60px_newMeyerowitz 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, Rivkin Radler LLP
Anne M. Murray, Rivkin Radler LLP
Jerold Oshinsky, Kasowitz, Benson, Torres &
Friedman LLP
Seth B. Schafler, Proskauer Rose LLP
David D. Thamann, The National Underwriter Company

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