Mealey's Insurance Pleadings

  • June 16, 2026

    Embryo Storage Lab Appeals No Coverage Ruling In Dispute Over Consumer Fraud Claims

    CHICAGO — An embryo storage lab said June 15 that it is appealing an Illinois federal court’s ruling that an underlying class action alleging that it engaged in false and deceptive advertising and failed to fully disclose the accuracy of preimplantation genetic testing does not trigger medical professional liability or commercial general liability coverage, challenging the court’s grant of the insurer’s motion for judgment on the pleadings in its action seeking a declaration that it has no duty to defend or indemnify.

  • June 16, 2026

    Arguing Lack Of Notice, LTD Claimant Asks 7th Circuit To Revive His Lawsuit

    CHICAGO — Asking the Seventh Circuit U.S. Court of Appeals to reverse a decision that upheld termination of his long-term disability (LTD) benefits under a “regular care of a physician” requirement, a former Whole Foods worker argues in his June 15 opening brief that the trial court was wrong both in concluding that the insurer cited the requirement during his administrative appeal and in ruling that under de novo review it could consider the requirement even if the insurer hadn’t cited it in the administrative appeal.

  • June 16, 2026

    Insured Says Stay Of Silica Suit Should Be Limited To Indemnity, Bad Faith Claims

    LOS ANGELES — An insured maintains in its reply in support of its motion to stay its silica coverage suit pending in California federal court that a stay is warranted until the underlying silica bodily injury suits are resolved but says the stay should be limited to the indemnification and bad faith claims.

  • June 16, 2026

    Pollution Exclusion Bars Coverage For Mold Exposure Suit, Insurer Says

    FORT MYERS, Fla. — No coverage is owed to an insured homeowners association and its property management company for an underlying suit stemming from the death of a resident allegedly exposed to toxins and mold while living in a property maintained by the homeowners association and property management company because the policy’s pollution exclusion and pathogen and related hazard exclusion bar coverage, an insurer says in a complaint filed in Florida federal court.

  • June 15, 2026

    CGL Insurer Asks 11th Circuit To Reconsider Appeal In Sex Trafficking Coverage Suit

    ATLANTA — A commercial general liability insurer asked the 11th Circuit U.S. Court of Appeals on June 12 to reconsider its dismissal of its appeal of a lower federal court’s declaration that it has a duty to defend a hotel operator insured against an underlying sex trafficking lawsuit, challenging the appeals court’s ruling that it lacks jurisdiction to hear the appeal.

  • June 15, 2026

    Insurers Seek Rehearing In Dispute Over Coverage For Fire During Renovation

    CINCINNATI — Two insurers are seeking rehearing en banc after a split panel of the Sixth Circuit U.S. Court of Appeals held that they owed a property owner coverage for a fire that burned down a building during renovations because the property owner could not have complied with the policy’s requirement that a fence be built around the entirety of the property during renovations, arguing that the majority’s finding that an insurer must prove it was prejudiced by its insured’s noncompliance with a preloss condition of coverage conflicts with circuit precedent.

  • June 15, 2026

    Clinic Owner Urges Court To Deny Motion To Compel In State Farm RICO Suit

    PORT HURON, Mich. — A medical-clinic owner who is required to pay an insurance company attorney fees and costs for violating a settlement agreement argues that an insurer’s motion to compel compliance with discovery to gain information about assets for an attorney fee award in a no-fault fraud and Racketeer Influenced and Corrupt Organizations Act (RICO) suit against him and related parties should be denied because some of the documents requested do not relate to the attorney fee award.

  • June 12, 2026

    Captive Insurer Sued Over Coverage Denial After Fatal Factory Accident

    NASHVILLE, Tenn. — A Virginia industrial services company sued its captive insurer in Tennessee federal court for breach of contract, alleging that the insurer wrongfully denied coverage under an actual net loss insurance policy after a fatal accident at a key customer’s steel facility caused a shutdown, restricted access to the company’s equipment and office trailer and led to the termination of a customer agreement worth 24% of the company’s annual revenue.

  • June 12, 2026

    Claimant Appeals LTD Ruling Involving ‘Reasonable Continuity’ Provision

    BOSTON — A plaintiff who unsuccessfully sought reinstatement of her long-term disability (LTD) benefits has filed a notice of appeal regarding a Massachusetts federal judge’s ruling that it was not arbitrary or capricious for the insurer to determine that she “could work pursuant to the Gainful Employment standard under the Plan, despite her illnesses and pain.”

  • June 11, 2026

    9th Circuit Sets Argument In LTD Denial Appeal Involving Long COVID

    PASADENA, Calif. — The Ninth Circuit U.S. Court of Appeals has scheduled oral argument for July 7 in the case of a former underwriter who says he was disabled by cognitive impairments and other symptoms he attributes to long COVID; issues in the appeal include assessing differing medical opinions and whether new reasons for denial of long-term disability (LTD) benefits were improperly raised in the lower court.

  • June 10, 2026

    Annuitant Files Class Suit Against Investment Adviser Over ‘Risky’ Annuities

    SAN DIEGO — An annuitant filed a putative class action suit in California federal court claiming that an investment adviser profited from “risky” insurance and annuity products issued by The Phoenix Companies Inc., now known as PHL Variable Insurance Co., which is in rehabilitation, alleging that the adviser knew of the financial risk posed by the insurer but “chose to keep silent so it could hide its breaches of trust and failure to disclose while quietly pocketing and improperly retaining millions of dollars in upfront and trailer commissions, to the detriment of Plaintiff and Class Members.”

  • June 09, 2026

    Insurer Appeals Bad Faith Verdict, Judgment In Hurricane Ida Coverage Suit

    NEW ORLEANS — An insurer told a Louisiana federal court that it is appealing a jury’s finding that it acted in bad faith in its handling of a church insured’s claim arising from Hurricane Ida property damage, the $4,567,441.68 final judgment entered against it and the court’s denial of its motion for judgment as a matter of law or for a new trial.

  • June 09, 2026

    Insurer Says It Has No Duty To Defend Red Roof Against Human-Trafficking Suits

    CINCINNATI — A general liability insurer argued to the Sixth Circuit U.S. Court of Appeals that a lower federal court made a fundamental error in finding that it has a duty to defend against 11 underlying lawsuits alleging that human trafficking occurred at the insureds’ Red Roof hotels, asserting that the Trafficking Victims Protection Reauthorization Act (TVPRA) “imposes liability on those who participate in a sex-trafficking venture—not on mere bystanders who knew or should have known that trafficking was occurring at their establishment.”

  • June 03, 2026

    Emory University: Pandemic Closure Suit Triggers Educators Legal Liability Coverage

    DECATUR, Ga. — Emory University sued its insurer for breach of contract, bad faith and breach of the duty of good faith and fair dealing in a Georgia court, alleging that an underlying lawsuit seeking money back after classes and services were impacted by the coronavirus pandemic alleges “precisely the types of claims” that the policy’s Educators Legal Liability (ELL) section expressly covers.

  • June 03, 2026

    Massachusetts Sues UnitedHealthcare For Allegedly Defrauding MassHealth

    BOSTON — The Massachusetts attorney general filed a complaint against UnitedHealthcare Insurance Co. in a Massachusetts court, asserting that the insurer violated the Massachusetts False Claims Act (MFCA) by improperly submitting inaccurate assessments to MassHealth, the commonwealth’s Medicaid program, for seniors enrolled in United’s senior care organization (SCO) plan, resulting in higher reimbursements to United than permitted, and by failing to repay the overpayments.

  • June 02, 2026

    Hazardous Materials Exclusion Bars Coverage For Wrongful Death Suit, Carrier Says

    TAMPA, Fla. — A commercial general liability insurer maintains in a complaint filed in Florida federal court that no coverage is owed to its insureds for an underlying wrongful death suit because its policy’s hazardous materials exclusion bars coverage for bear mace that was sprayed by the insureds’ employee while a crowd of patrons was exiting the insured nightclub.

  • June 02, 2026

    Pollution Exclusion Bars Coverage For Carbon Monoxide Exposure, Insurer Says

    RIVERSIDE, Calif. — An insured, named in an underlying carbon monoxide poisoning suit, is not entitled to a defense or indemnity because coverage is excluded pursuant to a pollution exclusion in the policies at issue, the insurer maintains in a motion for summary judgment filed in California federal court.

  • June 02, 2026

    ‘Rescoring’ Settlement In NFL Benefits Lawsuit Wins Preliminary Approval

    BALTIMORE — A Maryland federal judge on June 1 gave preliminary approval to a class settlement that would resolve a suit former NFL players filed over the use of “race-based demographic adjustments” in “scoring neuropsychological tests” used to determine whether they receive disability and related benefits; the parties said the deal is designed to ensure that such “adjustments play no role in the Plans’ benefit determinations, whether prospectively or retroactively.”

  • June 01, 2026

    Insurer Responds To Company’s Objection To Recommendation In Defense Coverage Case

    SHERMAN, Texas — In a May 27 filing, the insurer of an infectious disease lab testing company urged a Texas federal judge to adopt a magistrate judge’s recommendation granting the insurer judgment on the pleadings in a dispute over defense coverage for regulatory claims, arguing that the liability policy clearly limits coverage for such claims and that the limit applies to the company’s defense costs.

  • May 29, 2026

    Businessman Files Fraud Counterclaim In Lawsuit Over Reinsurer’s $34M Guaranty

    NEW YORK — A Florida businessman sued by a reinsurer over an allegedly breached $34.4 million limited guaranty tied to a defaulted credit facility has filed a fraudulent inducement counterclaim in New York federal court, asserting that he executed the guaranty and participated in the loan transaction in reliance on collateral-related representations that were false and made with the knowledge and participation of affiliates involved in the transaction.

  • May 28, 2026

    Insurer Says Federal Judge Lacked Full Record In Time-Barred UIM Benefits Dispute

    HOUSTON — An insurer seeking reconsideration of a Texas federal judge’s denial of a summary judgment motion on a counterclaim in a years-long motor collision coverage dispute contends that the judge “put the cart before the horse” and did not have all of the proper evidence available when finding that the insurer did not prove that the statute of limitations had run.

  • May 28, 2026

    California Insurance Head Says Regulatory Bulletins Don’t Violate FAIR Plan Law

    LOS ANGELES — California Insurance Commissioner Ricardo Lara argues in an opposition brief filed in a California state court that a consumer research and advocacy organization’s petition to invalidate regulatory bulletins authorizing California FAIR Plan assessment cost pass-throughs should be denied because the bulletins only explain the prior-approval process for temporary supplemental fees and do not conflict with the FAIR Plan proportional-sharing requirement because that provision governs only the FAIR Plan’s internal affairs rather than member insurers’ relationships with policyholders.

  • May 27, 2026

    Insurer Says Chinese Bank Won’t Honor Vesttoo-Related Letters Of Credit

    CHICAGO — An insurer and its parent corporation sued a Chinese bank and two affiliates in an Illinois federal court, alleging that the bank refused to honor nine Vesttoo Ltd.-related standby letters of credit with a combined face value of nearly $10 million that were required to collateralize reinsurance obligations, leaving the insurer with impaired surplus, regulatory restrictions and unreimbursed claims.

  • May 27, 2026

    FCIC, Crop Insurance Agency Split On Immunity In Dispute Over Agent Commissions

    WASHINGTON, D.C. — In supplemental briefing in a crop insurance agency’s suit over reduced agent commissions and policy transfer allegations, the Federal Crop Insurance Corp. (FCIC) argues that it is immune from the agency’s declaratory judgment claims because the Federal Crop Insurance Act (FCIA) does not waive sovereign immunity for challenges to FCIC’s regulatory conduct, while the agency maintains that the FCIA’s sue-and-be-sued clause permits declaratory relief concerning FCIC’s alleged duties under the statute and a standard reinsurance agreement.

  • May 27, 2026

    Boston University Seeks Coverage For $1.76M In Costs Defending Class Action Lawsuits

    BOSTON — The trustees of Boston University sued its educators legal liability insurer for breach of contract and declaratory judgment in a Massachusetts court, seeking coverage for the $1.76 million in costs that the university incurred by defending against underlying class action lawsuits alleging that it breached its promise of in-person instruction and services when it transitioned to online learning in March 2020 due to the coronavirus pandemic.