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TODAY'S TOP DEVELOPMENTS Friday, September 4, 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.


Commercial General Liability
In Landmark Ruling, California Supreme Court Holds that Insurer May Not Refuse to Honor Insured’s Assignment of Policy Coverage Regarding Injuries Predating Assignment
In a landmark ruling, the California Supreme Court has held in Fluor Corp. v. Superior Court that California Insurance Code Section 520 barred an insurer from refusing to honor an insured’s assignment of policy coverage regarding injuries that predated the assignment. In so deciding, the court has brought California in line with the majority rule that precludes an insurer, after a loss has occurred, from refusing to honor an insured’s assignment of the right to invoke policy coverage for such a loss. Read More

Homeowners Insurance

"Physical Abuse" Exclusion Applies to Claim that Insured Lent Gun to His Sister that She Used to Shoot Her Son-in-Law, Florida Appeals Court Rules in Case of First Impression
An appellate court in Florida, addressing an issue of first impression in Florida regarding the "physical abuse" exclusion of a homeowner's insurance policy, has ruled that the exclusion applied to a son-in-law's claim that his mother-in-law shot him after borrowing a gun from her brother, who was the insured under the policy. Read More

Automobile Insurance
Ohio Supreme: Auto Policy’s “Any Negotiated Reduced Rate” Language Did Not Include Reduced Rates Negotiated by Insured’s Health Insurer
The Ohio Supreme Court, reversing an appellate court’s decision, has ruled that language in an automobile insurance policy providing that the insurer would pay “any negotiated reduced rate accepted by a medical provider” did not include the reduced rates negotiated by the insured’s third-party health-insurance provider. Read More

Automobile Insurance
NJ Supreme Court Limits Obligation of Auto Insurers to Pay Liability Claims of Innocent Third Parties Where Policy Is Voided for Fraud
The New Jersey Supreme Court, reversing an appellate court’s decision, has ruled that, where an automobile insurance policy providing for an optional $10,000 coverage for third party bodily injury was voided due to a fraudulent application, the insurer must pay the liability claims of innocent third parties up to the contracted $10,000 amount. Read More

View All Case Law Developments

Health Insurance

Rhode Island Attorney General Appeals Health Insurance Commissioner's Decision on Blue Cross Blue Shield Proposed Rate Increases for Direct Pay Plan
Rhode Island Attorney General Peter F. Kilmartin has filed an administrative appeal in a Rhode Island state court seeking review of the decision of the Rhode Island Office of Health Insurance Commissioner increasing rates that can be charged by Blue Cross Blue Shield of Rhode Island for its "Direct Pay" line of business. Read More

Automobile Insurance
Geico Agrees to Pay $6 Million to California and Change Allegedly Misleading and Discriminatory Business Practices
Geico, a large multi-line insurer licensed in California, has agreed to pay $6 million and implement several changes to its business practices as part of a settlement with the California Department of Insurance. Read More

View All Legislative/Regulatory Developments
Insurers’ Claim Operations Facing Challenges to Attract, Retain Top Talent, Towers Watson Survey Shows Read More

State Auto Financial Announces Leadership Changes 
Read More

Prudential Retirement Hires New Executive to Lead TRS Product Team Read More

Donna Ross Joins SUNZ Insurance as In-House Counsel 
Read More

Fitch Releases Report on U.S. Life Insurers' Investment Portfolios Read More

View All Industry News
Campground as Vacant Land


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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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