Insurance Coverage


New York Insurance Coverage Law Update
March 1, 2014 | Insurance Coverage

New York Appellate Division Allows Private Right Of Action Against Health Care Insurer Under Prompt Pay Law

The New York Appellate Division, Second Department, has ruled that Insurance Law § 3224-a, known as the “Prompt Pay Law,” affords claimants a private right of action to recover payment for health care services based on a violation of

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Director of Insurer’s Retirement Plans Business Unit Found Exempt from FLSA Overtime Rules
February 28, 2014 | Appeals | Labor & Employment | Insurance Coverage

The plaintiff in this case was hired by Standard Insurance as Director of Institutional Sales and Product Manager for The Standard’s 403(b) and 457 retirement products shortly after the company introduced a new product into those markets. The plaintiff’s responsibilities included training staff about 403(b) plans, explaining their differences from 401(k) plans, doing what was

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Insured Can Use Third Party Payments to Satisfy SIR Provision, Florida Supreme Court Holds
| Insurance Coverage

The Florida Supreme Court, answering a question certified by the U.S. Court of Appeals for the Eleventh Circuit, has ruled that an insured general contractor could use payments to it from a third party subcontractor under a contractual indemnity obligation to satisfy its own insurance policy’s self-insured retention (“SIR”) provision. The circuit court also decided

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Circuit Affirms District Court’s Ruling that Archdiocese Was Not Entitled to Coverage for Claims It Settled for Which It Was Not Legally Liable
| Insurance Coverage

The U.S. Court of Appeals for the Eighth Circuit, affirming a district court’s decision, has ruled that the Archdiocese of St. Louis was not entitled to coverage under its insurance policy for a settlement of claims for which it was not legally liable.

The Case

After the Archdiocese of St. Louis and Archbishop Robert J.

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CAFA’s $5 Million Amount-in-Controversy Requirement Can Be Met Where Plaintiff Seeks Only Declaratory Relief, Eleventh Circuit Rules
| Insurance Coverage

The U.S. Court of Appeals for the Eleventh Circuit, reversing a district court’s decision, has determined that the $5 million amount-in-controversy requirement under the federal Class Action Fairness Act (“CAFA”) for federal subject matter jurisdiction can be satisfied where a plaintiff seeks only declaratory relief.

The Case

After Florencio Sanchez was injured in an automobile

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Circuit Court Finds that Additional Insured Endorsement Limiting Coverage to Ongoing Operations Did Not Afford Coverage for Construction Defect Claim
| Insurance Coverage

The U.S. Court of Appeals for the Fifth Circuit, reversing a district court’s decision, has ruled that an additional insured endorsement that limited coverage to ongoing operations did not afford coverage for a construction defect claim, arising out of completed operations, asserted against a general contractor who was an additional insured on a subcontractor’s commercial

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Texas Supreme Court Decides that Contractual Liability Exclusion Did Not Bar Coverage of Construction Defect Claims against General Contractor
| Insurance Coverage

The Texas Supreme Court, answering a question certified to it by the U.S. Court of Appeals for the Fifth Circuit, has ruled that a general contractor that entered into a contract in which it agreed to perform its construction work in a good and workmanlike manner, without more specific provisions enlarging this obligation, did not

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Excess Insurer Not Obligated to Indemnify Insured for Defense Costs to Which It Had Not Consented
| Insurance Coverage

A Delaware trial court has ruled that an excess insurance carrier did not have a duty to indemnify its insured for defense costs to which it had not consented. The court also found that there was no requirement that the insurer had to act reasonably when withholding consent.

The Case

Mine Safety Appliances Company (“MSA”)

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

New York Court of Appeals Vacates K2, Rejecting “Automatic Indemnity” Where Insurer Breaches Duty to Defend

In K2 Investment Group, LLC v. American Guarantee & Liability Ins. Co., the insurer breached its duty to defend, and a default judgment was entered against its insured. The New York Court of Appeals has vacated its controversial June

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Golfer Who Allegedly Fought with Another Golfer, Striking Him with His Club, Loses Bid for Coverage
January 31, 2014 | Insurance Coverage

The U.S. Court of Appeals for the Eleventh Circuit, affirming a district court decision, has ruled that a homeowner’s insurance carrier was not obligated to defend or indemnify its insured for claims that he got into a fight with a golfer, struck him with his golf club, and injured him.  

The Case 

While golfing with

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