Coverage & Claims

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A Nevada federal judge has determined that an insurer did not breach its contract or act in bad faith when it terminated payment for chiropractic services for two policyholders injured in an automobile accident. The Court found that the plaintiff policyholders failed to counter medical testimony that they did not require additional chiropractic care because the “maximum medical improvement” had been reached. …
Read More Nevada Federal Judge Finds No Breach of Contract or Bad Faith Where Insurer Ceased Payment to Policyholders for Chiropractic Services Following Auto Accident

A New Jersey federal judge dismissed a bad-faith claim for underinsured-motorist benefits, finding that Plaintiff’s complaint lacked necessary factual support and did not rise above the level of “bare averment.”  The Court also dismissed Plaintiff’s claim for punitive damages, finding that Plaintiff failed to allege sufficient facts to show egregious circumstances or that the insurer’s conduct was wantonly reckless or malicious. …
Read More “Bare Averment” Insufficient to Maintain Bad Faith Claim in New Jersey for Underinsured-Motorist Benefits

As previously reported in this blog, President Obama signed into law the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (the “Iran Sanctions Act”) in July, following the less stringent sanctions passed earlier by the U.N.  For a more detailed discussion of the Iran Sanctions Act, see here.  Canada, the European Union and Australia soon followed with similar sanctions aimed at Iran’s financial and energy sectors. …
Read More Lloyd’s Market Drafts Exclusion to Ensure Compliance With Iran Sanctions

Nearly three years after a federal district court dismissed with prejudice a nationwide class action alleging antitrust and RICO claims against insurers and brokers in connection with contingent commission arrangements, the Third Circuit Court of Appeals has revived a limited swath of plaintiffs’ claims.  The Third Circuit concluded that plaintiffs’ allegations regarding contingent commission arrangements alone were insufficient to support antitrust and RICO claims. …
Read More Third Circuit Revives Limited Portions of In Re: Insurance Brokerage Antitrust Litigation (MDL 1663)

In late July 2010, the Eighth Circuit Court of Appeals held that an insurer that issued  a General Liability policy and an Information and Network Technology Errors or Omissions Liability policy must provide a defense to its insured under both policies for a claim that alleges the insured infected the underlying claimant’s computer with a spyware program, allegedly affecting the operation of the computer. …
Read More Eighth Circuit Rules That General Liability Insurer Must Defend Claim for Lost Use of Personal Computer Under Both General Liability Policy and Information and Network Technology Errors or Omissions Liability Policy

According to a recent article in Business Insurance, risk management consulting firm Towers Watson & Co. estimates that commercially insured losses from the explosion at the Deepwater Horizon oil rig in the Gulf of Mexico will be between $4 billion and $6 billion.   Nonetheless, Towers Watson notes that its estimate represents only a fraction of the overall economic loss suffered from the Gulf oil spill, which so far is estimated to be $35 billion. …
Read More Oil Rig’s Insured Losses estimated to be $4 Billion to $6 Billion

According to a recent Dow Jones News Service article, leading insurance companies have recently stated that they do not expect the Deepwater Horizon explosion in the Gulf to be a catastrophic event for the so-called “upstream” insurance market.  The upstream insurance market, which sells coverage to companies that are involved in the search for, development and production of oil, operates in its own niche of the property and casualty insurance industry collecting roughly $2.5 billion a year in premiums. …
Read More Upstream Insurers See Losses From Gulf Oil Spill But Continue Business

Edwards Angell Palmer & Dodge is proud to provide its clients and friends with a comprehensive introductory guide to insurance and reinsurance regulations, claims, coverage, and transaction-related information and tips. This collection touches on both the US and UK laws and business practices and reflects the work of our attorney teams across practices and around the world. …
Read More EAPD Announces Publication of 2010 Insurance and Reinsurance Guide

In Axa Corporate Solutions SA v National Westminster Bank Plc & Marsh Ltd [2010] EWHC 1915 (Comm) Axa sought a declaration by the Court that a terrorism exclusion clause had been incorporated into its renewal of a public and products liability (PPL) policy with RBS, of which NatWest is a group company. …
Read More UK: English High Court Accepts Incorporation of Terrorism Exclusion Clause in PPL Policy

The Court of Appeal, in City & General (Holborn) Ltd v Royal Sun Alliance Plc [2010] EWCA Civ 911, was asked to consider whether the earlier decision to set aside an extension of time for service of a claim form (granted due to the claim being time-barred) was correct. The claim bought by City & General (C&G) was in respect of damage suffered to a building in London as a result of flooding which started in April 2002, the collapse of a crane on an adjoining site in January 2003, and the infestation of the building’s water systems by bacteria which was discovered in May 2004. …
Read More UK: Application for Extension of Time is Barred by the Court of Appeal