Insurance Coverage


Grand Jury Recommends Four Steps to Cut Workers’ Comp Fraud
May 2, 2014 | Appeals | Insurance Coverage

Employers, employees, taxpayers, and insurance carriers all are heavily burdened by the costs of Worker’s Compensation insurance fraud in New York and in the rest of the tri-state area. As just one example, consider what Charles Kelcy Pegler Sr. admitted to in a guilty plea entered just days ago in a New Jersey state court.

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New York Insurance Coverage Update
May 1, 2014 | Insurance Coverage

Appellate Court Affirms Order Requiring Insurers To Produce Investigation Documents Created Before They Denied Coverage

After a steam turbine power generator at Ravenswood Generating Station in Queens, New York, shook violently and was shut down, the operator notified its insurers of the loss. The insurers hired insurance adjusters and attorneys to assist in the investigation and

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Deducting Balances Due on Company-Guaranteed Credit Cards from Employees’ Final Paychecks Did Not Violate FLSA, Circuit Court Rules
April 30, 2014 | Appeals | Labor & Employment | Insurance Coverage

The plaintiffs in this case sued their former employer, Costco Wholesale Corporation, under the federal Fair Labor Standards Act (FLSA) and the California Labor Code, alleging that Costco improperly had withheld wages from their final paychecks to repay the undisputed outstanding balances due on their company-guaranteed credit cards.

After a bench trial in which the

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Hacking Discovered, Losses Not Covered
| Insurance Coverage

Please click the link below to view “Hacking Discovered, Losses Not Covered.” Adobe Reader is required to view the bulletin. If Adobe Reader is not installed on your PC, click here to download and install.

Hacking Discovered, Losses Not Covered

Copyright © 2014 by A.M. Best Company, Inc.  Reprinted with permission.  All rights reserved.

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South Dakota Supreme Court Upholds Enforceability of Continuing Injury Exclusion
| Insurance Coverage

The South Dakota Supreme Court has upheld the enforceability of an exclusion in a commercial general liability (“CGL”) insurance policy barring coverage for an unknown progressive or continuous injury or damage that occurred before the inception date of a successor insurance policy.

The Case

Steven Thomas & Sons, LLC, was hired in 2002 by Swift

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Cost-Advancement Order Issued in DJ Action Is Appealable, First Circuit Holds
| Insurance Coverage

The U.S. Court of Appeals for the First Circuit has ruled that an insurance carrier may appeal an order issued in a declaratory judgment action requiring that it advance defense costs to its insureds.

The Case

After Westernbank of Puerto Rico was closed and the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver, the FDIC

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Four Siblings’ Claims Against One Financial Advisor Were “Interrelated,” Circuit Finds
| Insurance Coverage

The U.S. Court of Appeals for the Eighth Circuit has ruled that claims brought by four siblings against a single financial advisor were “interrelated wrongful acts” and not separate claims for purposes of the advisor’s professional liability insurance policy.

The Case

After each of four siblings – all members of the Shakopee Mdewakanton Sioux Community

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Eleventh Circuit: Exclusion Bars Coverage for Junk Fax Suit
| Insurance Coverage

The U.S. Court of Appeals for the Eleventh Circuit has ruled that an exclusion in a commercial general liability insurance policy for violations of any statute that addresses transmitting any material or information (the “Exclusion”) barred coverage of a “junk fax” lawsuit against the insured for allegedly violating the federal Telephone Consumer Protection Act (the

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Class Action Relates Back to Earlier-Filed Suit, Florida Appeals Court Decides
| Insurance Coverage

A Florida appellate court has ruled that a class action filed against an insured mortgage broker after the expiration of its claims-made professional liability insurance policy related back to a claim filed during the policy period. Therefore, the appellate court ruled, the class action claim was covered by the policy. 

The Case

In October 2007,

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Insured Has Burden of Demonstrating that Settlements of Asbestos-Related Claims Were Reasonable
| Insurance Coverage

A federal district court in Maryland has ruled that an insured had the burden of demonstrating that settlements of asbestos-related claims were reasonable.

The Case

After thousands of asbestos-related claims were filed against Porter Hayden Company, it entered bankruptcy. The bankruptcy court confirmed Porter Hayden’s plan of reorganization, which established the Porter Hayden Bodily Injury

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