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TODAY'S TOP DEVELOPMENTS Thursday, July 2, 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.


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

Life Insurance

Change of Life Insurance Policy’s Beneficiary During Divorce Violated Automatic Orders and Was Ineffective, New York Appeals Court Finds
An intermediate appellate court in New York, affirming a trial court’s decision, has ruled that a wife’s decision to change the beneficiary of her life insurance policy while her divorce was pending – in violation of automatic orders that took effect upon the commencement of the divorce proceeding – was ineffective. Read More

Commercial General Liability
“Circumstantial” Allegations that Policy Existed 50 Years Ago Found Sufficient to Defeat Insurer’s Motion to Dismiss
The U.S. Court of Appeals for the First Circuit, reversing a decision by the U.S. District Court for the District of New Hampshire, has ruled that a private middle school’s “circumstantial” allegations made out a “plausible case” that an insurance policy existed nearly 50 years ago even though the school could not find a copy of the policy and the insurer could not confirm the existence of the policy. Read More

Automobile Insurance
Colorado Supreme: Purported Assignment of As Yet Indeterminable Portion of Proceeds of Unresolved Personal Injury Suit Was Ineffective Against Auto Insurer
The Colorado Supreme Court, reversing an intermediate appellate court’s decision, has ruled that a purported assignment to a medical debt company of an as yet indeterminable portion of proceeds of an unresolved personal injury claim was ineffective against the automobile insurance company for the defendant in the personal injury case. Read More

View All Case Law Developments

In the States

New York Comptroller Seeks Insurance Information on Safety Measures Taken by Businesses Involved in Shipping Oil
New York State Comptroller Thomas P. DiNapoli, trustee of the $183.5 billion New York State Common Retirement Fund, has sent letters to 14 companies, including Exxon Mobil Corp., Hess Corp. and CSX Corp., seeking information about measures the businesses are taking – including insurance – in response to the increasing number of serious accidents involving trains shipping petroleum. Read More

Insurance Fraud
Ex-Owner of Insurance Brokerage Pleads Guilty to Stealing $10 Million from Aetna
Bonney J. Hebert, of Killington, Vermont, has pleaded guilty to wire fraud and money laundering charges stemming from her theft of more than $10 million from Hartford-based Aetna Life Insurance Company. Read More

View All Legislative/Regulatory Developments
Sandra Pianalto, Former Head of Cleveland Fed, Joins Prudential Financial’s Board 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

Leslie C. Boughner Joins Advantage Insurance Read More

ISO Drone Insurance Coverage Options Take Effect This Month 
Read More

Kevin Leidwinger Appointed President and Chief Operating Officer of CNA Commercial Read More

View All Industry News
Limited Coverage for Designated Unmanned Aircraft


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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