More Insurance Coverage
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September 22, 2023
NC Suit Says Underwriter Helped Insurer Cut Out Partner
USI Insurance Services LLC and a subsidiary are suing an ex-employee and a former insurance-carrier partner after the underwriter allegedly jumped ship to help the insurance carrier cut out its need for his former employer, according to a lawsuit filed in North Carolina state court.
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September 22, 2023
Meta Must Face Insurance Ad Bias Suit, Calif. Panel Says
A California appeals court has revived a proposed class action alleging Meta Platforms Inc. allowed Facebook advertisers to illegally discriminate against women and older users by restricting access to life and auto insurance ads, finding that the allegations are sufficient and the Communications Decency Act doesn't shield Meta from liability.
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September 22, 2023
NJ Gov. Calls For Menendez To Resign Over 'Disturbing' Charges
In the wake of an indictment alleging that Sen. Bob Menendez of New Jersey and his wife have had a corrupt relationship with three New Jersey businessmen, Gov. Phil Murphy and other prominent Democrats called on Friday for his resignation.
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September 22, 2023
Genworth Can Seek Coverage For $335M Premium Hike Suits
A Delaware judge said a long-term care insurance provider that expected to spend at least $335 million on underlying litigation and settlement costs wasn't barred from coverage by its professional liability carriers in suits alleging it hiked premiums on clients without notification.
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September 22, 2023
NJ Sen. Menendez Took Bribes For Egyptian Aid, Feds Charge
Manhattan federal prosecutors unsealed an indictment Friday charging Sen. Bob Menendez, D-N.J., with steering billions of dollars worth of military aid to Egypt and attempting to interfere in criminal prosecutions in exchange for bribes.
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September 21, 2023
Travelers Settles With Unauthorized Swag Seller
It wasn't the first time Travelers asked an unauthorized swag vendor using its famous logo not to stand under its red umbrella, but the legal storm passed, the insurer told a Connecticut federal court, announcing it had settled its trademark suit against the company.
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September 21, 2023
Hartford Unit Scores 11th Circ. Win In Opioid Coverage Row
The Eleventh Circuit on Thursday upheld a Hartford unit's early win in an opioid drugmaker's coverage dispute, agreeing with an Alabama federal judge that the carrier was not provided with timely notice.
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September 20, 2023
DC Court Backs HUD Disparate Impact Rule, 8 Years Later
The D.C. federal court upheld a U.S. Department of Housing and Urban Development rule expanding the scope of discriminatory housing practices eight years after the circuit court ordered its review, delayed by multiple administrations' rewrites of the policy.
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September 20, 2023
Expanding Privacy Law Enforcement Broadens Insurer Woes
Privacy statutes and claims have proliferated throughout 2023, raising exposure for policyholders and insurers as the plaintiffs bar goes beyond government enforcement to challenge how companies manage personal, health and financial data.
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September 19, 2023
Grange Names Veteran Insurance Atty As Legal Chief
Grange Insurance Company announced on Tuesday that it will promote its former general counsel to chief legal officer next year after its current legal chief retires.
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September 19, 2023
Hancock Raised Rates Despite Corp. Tax Cut, Class Suit Says
Two New York companies holding John Hancock life insurance policies lodged a proposed class action in Illinois federal court, alleging the insurer's rates are excessive because they do not reflect the effects of the 2017 Tax Cuts and Jobs Act.
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September 18, 2023
NYC Atty Admits To Bilking Clients, Laundering Fraud Funds
A New York City attorney on Monday admitted to running an $18.8 million Ponzi scheme that defrauded real estate investors and separately laundering funds from what prosecutors say was a massive insurance fraud scheme.
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September 18, 2023
Gov't Says Hospital Profited Via Kickbacks To Sober Homes
A Massachusetts-based substance abuse treatment provider allegedly steered thousands of Medicare and Medicaid patients to its outpatient program with promises of free sober housing, in violation of federal and state anti-kickback and false claims laws, the U.S. Attorney's Office in Massachusetts said Monday.
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September 18, 2023
Ex-Cigna Employee To Settle SEC's Insider Trading Claim
A former financial controller for a division of insurer Cigna Group has agreed to pay nearly $33,600 to end U.S. Securities and Exchange Commission allegations that he engaged in insider trading as the company prepared to announce a bump in costs after pandemic lockdowns.
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September 15, 2023
Tesla Repair Shop Says State Farm's Lies Cost It Customers
A Tesla-certified auto repair shop accused State Farm of intentionally misleading insured clients regarding the cost of the shop's services and delaying claims to steer prospective customers away from the business.
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September 14, 2023
Insurer Accused Of Inflating Workers' Comp Premiums
An Illinois fabrication company has hit Insurance Co. of the West with a proposed class state court suit claiming the insurer unlawfully overcharges for workers' compensation insurance by using a "secret methodology" to predetermine one of the factors involved in calculating those premiums.
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September 14, 2023
Dental Co. Seller Countersues Buyer In Del. Over $312M Deal
The seller of a dental insurance and administration company who is fighting breach of contract allegations from its new owners in Delaware district court has now countersued them in the First State's Court of Chancery, also alleging breach of contract.
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September 14, 2023
AmeriLife Hires Ex-MetLife Compliance Executive
Insurance company AmeriLife Group LLC has found a new chief risk and compliance officer, handing the role to an attorney who formerly oversaw compliance duties for a MetLife spinoff.
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September 13, 2023
CareFirst Data Breach Fight Whittled Down To Contract Claim
A D.C. federal judge on Wednesday declined to put an end to a putative class action over a 2014 data breach at health insurer CareFirst, axing a pair of state consumer protection law claims while leaving a sole breach of contract allegation to move forward in the long-running dispute.
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September 13, 2023
Insurance Mogul's Partner Agrees To Pay In Racketeering Suit
The partner of an embattled North Carolina insurance mogul agreed to pay unspecified money damages to settle a federal racketeering lawsuit alleging that he was in on a scheme to illegally divert money from insurers for personal gains.
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September 13, 2023
Black Homeowners' Bias Suit Against State Farm Still Alive
An Illinois federal judge trimmed claims from a proposed class action alleging that State Farm's claims processing algorithms create discriminatory outcomes for Black homeowners, allowing the suit to move forward with a narrower scope.
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September 13, 2023
Insurer Wants Out Of Covering Biometric Privacy Suit
A Hartford unit told an Illinois federal court it should owe no coverage to a farm supply company accused in a proposed class action of violating the state's biometric privacy law, pointing in part to a "biometric privacy claim" exclusion.
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September 11, 2023
Online Insurance Quote Tool Led To Data Breach, Suit Says
A proposed class action alleges insurer MAPFRE USA and a Massachusetts subsidiary exposed the driver's license numbers of more than 265,000 people through an auto-populate feature in its online quote tool, leading to a data breach.
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September 11, 2023
Liquor Co. Settles Driver's Workers' Compensation Fight
A North Carolina liquor company has settled its workers' compensation fight with a delivery driver over a shoulder injury she sustained while reaching for a falling case of booze, according to a Monday filing in the state appeals court.
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September 11, 2023
Insurance Agent Says SEC's $1M Real Estate Fraud Suit Fails
A North Carolina insurance agent has asked a federal judge to toss U.S. Securities and Exchange Commission allegations he defrauded seven investors out of over a million dollars, arguing that the regulator was trying to sue him over a bona fide real estate development venture that had failed as opposed to a scheme to con retirees.
Expert Analysis
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Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Okla. Workers' Comp Case Could Mean Huge Shift In Claims
An Oklahoma appeals court's recent opinion in Prewitt v. Quiktrip Corp. may expand the scope of continuing medical maintenance orders in workers' compensation cases to unprecedented levels — with potentially major consequences for employers and insurers, says Steven Hanna at Gilson Daub.
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How Reps And Warranties Insurance Can Aid Sellers In M&A
Amid the current slowdown in the M&A climate, representation and warranty insurance offers sellers a number of advantages, including protection against fraud and possible leverage to insist on a no-seller-indemnity deal, say Alex Leibowitz and Eric Jesse at Lowenstein Sandler.
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ESG Around The World: Australia
Clive Cachia and Cathy Ma at K&L Gates detail ESG-reporting policies in Australia and explain how the country is starting to introduce mandatory requirements as ESG performance is increasingly seen as a key investment and corporate differentiator in the fight for global capital.
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Ore. Warranty Ruling Complicates Insurance Classification
The Oregon Court of Appeals' recent TruNorth v. Department of Consumer and Business Services holding that a service contract — commonly referred to as an extended warranty — covering commercial property is subject to the state's consumer service contract laws raises regulatory questions for contract obligors, sellers and administrators, say attorneys at Locke Lord.
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2nd Circ. Reinsurance Ruling Correctly Applied English Law
Contrary to a recent Law360 guest article's argument, the Second Circuit correctly applied English law when it decided in Insurance Company of the State of Pennsylvania v. Equitas that concurrent reinsurance certificates required the reinsurer to cover loss in accordance with the law of the policy's governing jurisdiction, say Peter Chaffetz and Andrew Poplinger at Chaffetz Lindsey.
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ALI, Bar Groups Need More Defense Engagement For Balance
The American Law Institute and state bar committees have a special role in the development of the law — but if they do not do a better job of including attorneys from the defense bar, they will come to be viewed as special interest advocacy groups, says Mark Behrens at Shook Hardy.
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FCA Liability Lessons From HHS Psychotherapy Audit
The U.S. Department of Health and Human Services' recent finding of improper Medicare payments for psychotherapy services provided in 2020-2021 might inspire whistleblowers to pursue allegations under the federal False Claims Act, but there are reasons to be skeptical of converting these audit results into expansive FCA liability, say attorneys at Sidley.
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What's Next For 5th Circ.'s ACA Preventive Care Suit
The Fifth Circuit's high-profile Braidwood v. Becerra case has significant ramifications for Affordable Care Act coverage requirements, and there is precedent to suggest that it could be ultimately decided by the U.S. Supreme Court, says Nicholas DiCarlo at Zuckerman Spaeder.
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2nd Circ. Reinsurance Ruling Misconstrues English Law
The Second Circuit's finding in Insurance Company of the State of Pennsylvania v. Equitas Insurance, that London-based reinsurer Equitas owed coverage for losses outside the policy period, stems from that court's misinterpretation of English law on reinsurance policy construction, says Christopher Foster at Holman Fenwick.
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Firm Tips For Helping New Lawyers Succeed Post-Pandemic
Ten steps can help firms significantly enhance the experience of attorneys who started their careers in the coronavirus pandemic era, including facilitating opportunities for cross-firm connection, which can ultimately help build momentum for business development, says Lana Manganiello at Equinox Strategy Partners.
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6th Circ. Judge Correctly ID'd ERISA Civil Procedure Conflict
While the Sixth Circuit in Tranbarger v. Lincoln Life & Annuity recently affirmed a ruling that denied the plaintiff's disability benefits, one judge's concurrence should be commended for arguing that adjudication of such Employee Retirement Income Security Act cases fundamentally contradicts the Federal Rules of Civil Procedure, says Mark DeBofsky at DeBofsky Law.
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Prepping Your Business Ahead Of Affirmative Action Ruling
The U.S. Supreme Court's upcoming ruling on whether race should play a role in college admissions could potentially end affirmative action, and companies will need a considered approach to these circumstances that protects their brand power and future profits, and be prepared to answer tough questions, say Nadine Blackburn at United Minds and Eric Blankenbaker at Weber Shandwick.