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TODAY'S TOP DEVELOPMENTS Tuesday, June 23, 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.


Rhode Island Supreme Court Upholds Enforceability of Stranger-Originated Annuity and Its Date-of-Issuance Incontestability Clause
The Rhode Island Supreme Court, in response to certified questions by the U.S. Court of Appeals for the First Circuit, has ruled that an annuity with a death benefit was not infirm for want of an insurable interest when the owner and beneficiary was a stranger to the annuitant, and has upheld a clause in the annuity that purported to make the annuity incontestable from the date of its issuance. Read More


Absence of Evidence that Wind, Not Water, Caused Superstorm Sandy Damage Dooms Condo Association's Breach of Contract Claim Against Insurer
A federal district court in New Jersey has granted an insurance company's summary judgment motion in a Superstorm Sandy case, ruling that a condo association had not presented evidence demonstrating that damage to the condo had been caused by wind rather than by water, which was excluded by its commercial property insurance policy. Read More

Investor's Madoff Losses Were Not Covered by Financial Institution Bond, N.Y. Appeals Court Holds
An appellate court in New York, affirming a trial court's decision, has ruled that a financial institution bond did not provide coverage for losses an investor suffered in the Bernard L. Madoff Ponzi scheme. Read More

Homeowners Insurance
Finding Insureds Had Engaged in Fraud and Bad Faith, Court Voids Policy and Enters $4.1 Million Judgment in Insurer's Favor
A federal district court in Missouri, after a bench trial, has ruled that two homeowners had violated their insurance policy's "Concealment or Fraud" provision and that, as a result, their policy was void. The court also entered judgment against the homeowners in the amount of $4,076,806.61. Read More

View All Case Law Developments

Federal Actions

Magistrate Judge Who Ordered Broad Discovery in Superstorm Sandy Cases Is Recommended for N.Y. District Court Seat
U.S. Senator Charles E. Schumer (D-N.Y.) is recommending U.S. Magistrate Judge Gary Brown to President Obama to serve on the bench of the U.S. District Court for the Eastern District of New York. Read More

Automobile Insurance
Lyft Settles Insurance Dispute with New York Regulators
New York regulators have agreed to the terms of a consent order and judgment with Lyft, a company that provides for-hire livery services where the company, among other things, dispatches cars through a phone app. The consent order, which resolves an action filed against Lyft in July 2014, requires Lyft to pay $300,000 in penalties for alleged violations of New York state and municipal laws – one of the largest penalties enacted against a "sharing economy" company to date. Lyft also agreed that it will comply with the relevant provisions of the New York Insurance Law. Read More

View All Legislative/Regulatory Developments
Seven in 10 Insurers Are Unprepared for Potential Disruption Caused by Autonomous Vehicles, KPMG Survey Finds Read More

Ironshore Personal Lines Introduces Home and Family Security Endorsement for High Net Worth Insureds 
Read More

FC&S Legal Publishes "Fourth Circuit Rules under Maryland Law that Insurer May Not Void Policy Based on Ambiguous Policy Application Questions" Read More

ACE Highlights Emerging Multinational Insurance Considerations for Professional Services Firms 
Read More

Cancer and End-Stage Renal Disease Top List of Costliest Medical Claims, Sun Life Reports Read More

View All Industry News
Droughts and Insurance


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

View Entire May / June Insurance Coverage Law Report
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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.
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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