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TODAY'S TOP DEVELOPMENTS Friday, June 12, 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.


Homeowners Insurance
Ninth Circuit: Arizona Law Favors "Broader Interpretation of Direct Causation" in Case Where Fire Led to Flooding and Mudslides that Destroyed Insureds' Home
The U.S. Court of Appeals for the Ninth Circuit has reversed a decision by the U.S. District Court for the District of Arizona that concluded that damage to an insured home caused by mudslides a month after a fire could not, as a matter of law, be "directly" caused by fire as required under Arizona law. The circuit court declared that Arizona law favored a "broader interpretation of direct causation."  Read More

Crime and Employee Dishonesty

Fidelity Bond Covered Bank's Loss from Advance Money Scam, Eighth Circuit Rules
The U.S. Court of Appeals for the Eighth Circuit, affirming a decision by the U.S. District Court for the District of Minnesota, has ruled that a fidelity bond covered a settlement that a bank reached with two individuals a bank employee induced to invest in an advance money scam. Read More

New Jersey Does Not Recognize Cause of Action for Bad Faith Breach of Surety Bond, District Court Rules
A federal district court in New Jersey has ruled that no cause of action for bad faith breach of a surety bond existed in New Jersey, rejecting a 15 year old federal district court decision to the contrary. Read More

Exclusions Barred Coverage for Pledgee's Hazing Suit against College Fraternity
A federal district court in Arkansas has ruled that a commercial lines policy did not provide coverage for a lawsuit by a pledgee against a college fraternity and various of its members alleging that he had been caned, paddled, and hit as part of an initiation. Read More

View All Case Law Developments


New Florida Law Allows Insurers to Offer "Flexible Flood Insurance Coverage"
A new Florida law authorizes insurance carriers to offer "flexible flood insurance coverage" for the peril of flood that may include water intrusion coverage and that is different from standard or preferred coverage. Read More

Federal Actions
Mortgage Lender Illegally Referred Consumers to Mortgage Insurers in Exchange for Kickbacks, Consumer Financial Protection Bureau Finds
The director of the federal Consumer Financial Protection Bureau ("CFPB"), Richard Cordray, has issued a decision in the first appeal of a CFPB administrative enforcement proceeding and has concluded that PHH Corp., a mortgage lender, illegally referred consumers to mortgage insurers in exchange for kickbacks. Read More

View All Legislative/Regulatory Developments
Dickie, McCamey & Chilcote Hires Insurance Attorneys Beverly M. Barr, Dorothy T. Daly, and Eric D. Walstrom Read More

Affordability Drives Buying Patterns for Long Term Care Insurance, Association Confirms 
Read More

Small Employers Recognize Need for Long-Term Disability Insurance, but Many Are Not Sure of Its Cost, Its Benefits, and Employees' Views, Survey Finds Read More

Michael Tipsord to Become CEO of State Farm in September; Edward B. Rust Jr. to Step Down 
Read More

Allstate to Offer New Ridesharing Endorsement for Drivers Read More

View All Industry News
Homeowners Pollution Exclusions


Browse our entire library of over 2,500 insurance resources and forms.

View Entire May / June Insurance Coverage Law Report
View Insurance Coverage Law Report Archives
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.
Richard 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

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