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TODAY'S TOP DEVELOPMENTS Tuesday, March 3, 2015

Industry news, expert analysis, and daily updates on the most significant insurance coverage legal developments—from the insurance and legal experts of The National Underwriter Company.


Crime and Employee Dishonesty
In Taylor Bean Bankruptcy, Court Rules that Fidelity Bond Did Not Cover Losses Caused by Majority Shareholder (Lee Farkas) Who Dominated Company
A federal district court in Florida has ruled that Taylor, Bean & Whitaker Mortgage Corporation was not entitled to recover under a fidelity bond for losses caused by its majority shareholder, Lee Farkas, where he so dominated the company that he could not be considered an employee. Read More

Homeowners Insurance

Insured’s Failure to Disclose Husband’s Marijuana Growing Operation Dooms Coverage After Home Burned Down
The U.S. Court of Appeals for the Sixth Circuit, affirming a district court’s decision, has ruled that a homeowner’s insurance carrier was not obligated to pay its insured’s claim following a fire that consumed her home where she had not disclosed that her husband had a marijuana growing operation in the basement, which had accidentally caused the fire. Read More

Life Insurance
PACA Trumps Secured Creditor’s Right to Proceeds of Life Insurance Policy, Court Rules
A federal district court in Pennsylvania has ruled that a secured creditor’s rights in a life insurance policy on the life of its borrower was subject to the rights of creditors of the borrower’s company, which owned the policy, under the federal Perishable Agricultural Commodities Act. Read More

Life Insurance
New Jersey Appeals Court Rejects Argument that Marriage Created a “Presumptive Right” to Spouse’s Life Insurance Benefits
An appellate court in New Jersey, affirming a trial court’s decision, has refused to adopt a “bright line” rule that marriage created a “presumptive right” to a spouse’s life insurance benefits and that marriage thereby revoked any contrary premarital beneficiary designation made by the deceased spouse. Read More

View All Case Law Developments

Superstorm Sandy

FEMA Official Has “Seen Evidence of” Fraud in Superstorm Sandy Engineering Reports
Brad J. Kieserman, the newly-appointed Deputy Associate Administrator for Federal Insurance at the Federal Emergency Management Agency, has “seen evidence of” fraud in engineering reports used by insurance companies to deny or limit payment on Superstorm Sandy claims filed by homeowners. Read More

Homeowners Insurance

In Settlement with Texas, State Farm Will Refund $352.5 Million to Homeowners
The largest homeowners’ insurer in Texas, State Farm Lloyds, has reached a settlement with the state and will refund approximately $352.5 million to policyholders who, the state asserted, had been overcharged premiums by State Farm. Read More

View All Legislative/Regulatory Developments
Transamerica Appoints Michael F. Consedine as Executive Director of Government Affairs Read More

FC&S Legal Publishes “CFTC Grants No-Action Relief to Commodity Pool Operators with Respect to Certain Insurance-Linked Securitization Vehicles” Read More

ACE Makes Executive Appointments in North America Professional Lines Division
Read More

Former AIG CEO Robert H. Benmosche Is Dead
Read More

Litigators Dominick Savaiano and Paul Bozych Join Wilson Elser Read More

View All Industry News
CGL Coverage versus Auto Coverage


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60px_newMeyerowitz Steven A. Meyerowitz, ESQ.
Director, FC&S Legal
60px_newSpears Victoria Prussen Spears, ESQ.
Associate Director, FC&S Legal
FC&S Legal Editorial Advisory Board
Mitchell J. Auslander, Willkie Farr & Gallagher LLP
Carrie Cope, Schuyler, Roche & Crisham, P.C.
Anjali C. Das, Wilson Elser
John F. Finnegan, Chadbourne & Parke LLP
Michele L. Jacobson, Stroock & Stroock & Lavan LLP
Timothy P. Law, Reed Smith LLP
Cort T. Malone, Anderson Kill, P.C.

D. Milone, Kelley Drye & Warren LLP
Joseph P. Monteleone, Rivkin Radler LLP
Anne M. Murray, Rivkin Radler LLP
Jerold Oshinsky, Kasowitz, Benson, Torres &
Friedman LLP
Seth B. Schafler, Proskauer Rose LLP
Thomas F. Segalla, Goldberg Segalla
David D. Thamann, The National Underwriter Company

FC&S Daily Legal Report ($1,295 annual subscription) is included as part of your subscription to FC&S Legal: The Insurance Information Center. FC&S Daily Legal Report and The Insurance Coverage Law Report are publications of The National Underwriter Company. For more information, visit To subscribe to FC&S Legal, please contact customer service at 1-800-543-0874 or

FC&S Legal: The Insurance Coverage Law Information Center

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