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New York Insurance Coverage Law Update – 2012 Compilation
January 1, 2013 | Insurance Coverage

Please click the link below to view the New York Insurance Coverage Law Update – 2012 Compilation. Adobe Reader is required to view the bulletin. If Adobe Reader is not installed on your PC, click here to download and install.

New York Insurance Coverage Law Update – 2012 Compilation

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Put on Hold
December 31, 2012 | Insurance Coverage

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Put on Hold

Copyright © 2013 by A.M. Best Company, Inc.  Reprinted with permission.  All rights reserved.

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Employer Does Not Violate FLSA by Changing Workweek So Employees Earn Fewer Hours of Overtime
December 31, 2012 | Insurance Coverage | Labor & Employment | Appeals

Five current and former employees of Redland Energy Services, LLC, who worked as operators of Redland’s two drilling rigs, sued Redland, alleging that it had violated an overtime provision of the federal Fair Labor Standards Act (FLSA) by changing the designation of their workweek, but not their work schedule, so that fewer hours qualified as

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No Coverage for Claims that Weight Loss Products Were Ineffective
December 31, 2012 | Insurance Coverage

Claims that weight loss products were ineffective and did not lead to weight loss were not covered by the manufacturer’s insurance policy, which provided coverage for claims of “bodily injury,” the U.S. Court of Appeals for the Fifth Circuit has affirmed.   

The Case

Consumers sued CSA Nutraceuticals GP, L.L.C., and CSA Nutraceuticals, L.P., (collectively “CSAN”)

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Delay in Notifying Insurer of Claim Dooms Coverage – Even in Absence of Prejudice
December 31, 2012

The U.S. Court of Appeals for the Eleventh Circuit has ruled that an insurer did not have to defend claims against its insured where the insured did not notify the insurer of the claim for over eight months, in violation of the policy’s notice requirement, even in the absence of prejudice to the insurer.

The

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Pollution Exclusion Clauses Bar Coverage for Claims Alleging Damage from Defective Chinese Drywall
December 31, 2012 | Insurance Coverage

Pollution exclusions in insurance policies issued to a homebuilder did not cover claims for damages associated with the supply and installation of allegedly defective Chinese drywall, the U.S. Court of Appeals for the Eleventh Circuit has ruled.  

The Case

KB Home, Inc., and KB Home Tampa, LLC, alleged that American Building Materials had supplied KB

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Pollution Exclusion and Damage to Property Exclusion Both Bar Coverage for Environmental Remediation
December 31, 2012 | Insurance Coverage

A commercial general liability (“CGL”) insurance policy’s pollution exclusion and its damage to property exclusion both excluded coverage for the costs incurred by an insured oil company that had been directed to remediate and remove water and soil polluted with diesel fuel.   

The Court’s Decision

The court first decided that the claim of the insured,

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Assault and Battery Exclusion Bars Coverage for Claims Arising from Alleged Tavern Fight
December 31, 2012 | Insurance Coverage

The assault and battery exclusion in a tavern’s commercial general liability (“CGL”) insurance policy excluded coverage for claims asserted by a person allegedly injured in a fight at the tavern, a federal district court has ruled.   

The Case 

A person allegedly injured in a fight at TJ Coffey’s, a tavern located in Buffalo, New York,

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Computer Systems Fraud Rider Covers Hackers, Not Authorized Users’ Fraudulent Activity, Court Finds
December 31, 2012 | Insurance Coverage

A New York court has ruled that a Computer Systems Fraud rider to a Financial Institution Bond did not cover alleged fraudulent activity by authorized users of the insured’s system.   

The Case 

Universal American Corp. offered a variety of insurance products to health care providers, including “Medicare Advantage Private Fee-For-Service” plans (“MA-PFFS”). The MA-PFFS plans

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Accountant Not Covered for Claims after Computer Disc with Clients’ Confidential Information Was Stolen from Her Car
December 31, 2012 | Insurance Coverage

While employed as an accountant at an accounting firm, Jeanne Hentz had a compact disc belonging to the firm stolen from her personal vehicle, which was parked at her house. The compact disc contained confidential information belonging to some of her employer’s clients. Those clients sued Hentz in Illinois state court for credit monitoring and

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Settlements With Underlying Insurance and Forfeiture of Excess Insurance
December 31, 2012 | Insurance Coverage

Michael Kotula, a partner in the firm’s Insurance Coverage & Litigation Practice Group, authored an article entitled Settlements With Underlying Insurance and Forfeiture of Excess Insurance as well as excess insurance case notes in the ABA TIPS Excess, Surplus Lines and Reinsurance General Committee Winter 2013 quarterly newsletter.  Michael is the Chair-Elect and Newsletter Editor of the

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“New York State Wage Theft Prevention Act Notice Requirements”
December 31, 2012 | Labor & Employment | Appeals

The New York State Wage Theft Prevention Act (“WTPA”) remains in effect, which means that employers have until February 1, 2013 to provide the required written notice to employees.  Pursuant to the WTPA, New York employers must provide New York employees with a written notice and acknowledgment of pay rate and payday on an annual

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Courts Confront the Question of Service by Facebook
December 18, 2012 | Professional Liability | Intellectual Property | Complex Torts & Product Liability

Under New York law, service of process may be effected by: (1) personal service; (2) delivery to “a person of suitable age and discretion at the actual place of business, dwelling place or usual place of abode of the person to be served” and mail; (3) service on an agent; or (4) so-called “nail and

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Due Diligence On Execs, Board Vital When Sizing Up Companies
December 12, 2012 | Health Services

Please click the link below to view Due Diligence On Execs, Board Vital When Sizing Up Companies. Adobe Reader is required to view the bulletin. If Adobe Reader is not installed on your PC, click here to download and install.

Due Diligence On Execs, Board Vital When Sizing Up Companies

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New York Insurance Coverage Law Update
December 1, 2012 | Insurance Coverage

Alleged Injury As Woman Exited Bus Did Not Arise Out Of Its “Use Or Operation,” NY Court Of Appeals Rules

The Court of Appeals has held that a woman who allegedly injured her ankle as she exited a New York City bus and stepped into a hole could not recover no-fault benefits because her

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