Waiver Rears its Head: Equitable Subrogation Against “Other Insurance” Waived by Failure to Preserve Rights

Questions of “other insurance” arise whenever two or more insurers could provide coverage for a claim against a common insured. If one insurer is put in the position of settling a claim when other insurers who may also owe coverage do not contribute, reserving and pursing rights against other insurers should never be an afterthought. An insurer recently learned this lesson when it failed to assert rights against another insurer before agreeing to provide coverage for the settlement of a
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Is the Joint Decision to Withdraw Met Life’s SIFI Designation a Hobson’s Choice?

With the consent of the Trump Administration, on Thursday, January 18, 2018, the Financial Stability Oversight Council (FSOC), a Federal government organization established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act during the Obama administration, and MetLife jointly filed a motion with in the United States Court of Appeals for the D.C. Circuit. FSOC empowers the government to designate non-banks as SIFI’s, which subjects them to heightened supervisory requirements by the Federal Reserve. The motion
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ACI Brexit Panel Preview: Four Key Issues for International Insurers

On March 8, 2018, at the 14th ACI National Forum on Insurance Regulation in New York City, I’ll be participating in a panel discussion on Brexit and its implications for the global insurance community. With Brexit’s implementation over a year away and many details left to be decided, insurance professionals and their legal counsel have been left with little more than speculation on the unprecedented event’s effects on their industry. Some central issues and concerns, however, are crystalizing. The following
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Do Insurers Have an Interest in Interest?

“In some states, interest can be a significant portion of a judgement,” Goldberg Segalla partners Jonathan Schapp and Michael T. Glascott explain. “Although it is not generally expected that interest on a judgment falls within the coverage provided under a commercial general liability policy, many policies contain a Supplementary Payment provision which could give rise to an obligation to reimburse such interest.” In a new article for Claims Journal, Jon and Mike take an in-depth look at how interest accrues, prejudgment and post-judgment interest,
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Changes to New York State Insurance Law Affect Auto Policies, Neonatal Intensive Care Coverage, and Exposures for Mortgage Guaranty Insurers

Frederick J. Pomerantz, a partner in Goldberg Segalla’s Global Insurance Services and Insurance Regulatory Practice Groups, has authored three alerts on changes to New York State insurance regulations in the November 2017 edition of the Federation of Regulatory Counsel (FORC) Alerts. In the alerts, Fred details notable recent changes pertaining to private passenger auto policies, neonatal intensive care services, and exposures for mortgage guaranty insurers. Analysis of Non-Renewals of Private Passenger Auto Policies Effective October 23, 2017, Section 1, Paragraph
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Texas Extends Emergency Adjuster Licensing Eligibility Period from 90 to 180 Days due to Extensive Claims Resulting from Harvey

Texas Insurance Code §§4101.002(b) and 4101.101 authorize carriers to immediately use nonresident and emergency adjusters to handle claims. Hurricane Harvey made landfall in Texas on August 25, 2017. As the Code authorizes — and with the relocation of hurricane victims and other personal hardships sustained by residents of counties covered in the governor’s disaster proclamations due to the effects of Harvey — the Texas Insurance Commissioner has just signed Order # 2017 dated November 16, 2017. This order extends for
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Massachusetts Court Holds that All Excess Policies are Created Equal

In Massachusetts, competing excess insurance policies will apply equally to provide excess coverage even if one policy is a true excess policy and the other is a hybrid policy that provides either primary or excess coverage depending on the circumstances. See Great Divide Ins. Co. v. Lexington Ins. Co., 2017 WL 4969942 (Mass. Nov. 1, 2017). In a November 1, 2017 opinion, the Supreme Judicial Court of Massachusetts held that the plain language of the insurance policies was the determinative
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The Modern Fraudster: How Courts Are Responding to Social Engineering Fraud

In an article for Insurance Journal, Goldberg Segalla partner Jonathan L. Schwartz and associate Colin B. Willmott, members of the Global Insurance Services Practice Group in the firm’s Chicago office, write about social engineering fraud (SEF) and questions over availability of insurance coverage for SEF under commercial crime policies — an issue the Second and Sixth Circuit Courts of Appeals are set to clarify in 2018. SEF includes now-common types of fraud involving digital communications: phishing/whaling, spoofing, and impersonating or pretexting. “A common example [of SEF]
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Pennsylvania Supreme Court Rules that Bad Faith Does Not Require Proof of an Insurer’s Self-Interest or Ill-Will

The Pennsylvania Supreme Court ruled today that the Pennsylvania bad faith statute does not require a plaintiff to prove that an insurer was motivated by self-interest or ill-will when denying benefits under an insurance policy. Instead, the court’s decision in Rancosky v. Washington National Insurance Company adopted the standard established by the Pennsylvania Superior Court 23 years ago in Terletsky v. Prudential Property & Casualty Company, under which a bad faith claim is established by clear and convincing evidence that the insurer did not
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DFS Partially Clarifies Who Qualifies for an Exemption Under Cybersecurity Regulation

By the terms of 23 NYCRR 500.19(e), Covered Entities that have determined they qualify for a limited exemption from compliance under 23 NYCRR 500.19(a)-(d) of New York’s new Cybersecurity Regulation — as of August 28, 2017 — are required to file a Notice of Exemption with the New York Department of Financial Services (NYDFS) on or prior to September 28, 2017. The first compliance date of August 28, 2017 in New York’s cybersecurity regulation, and the date for Covered Entities
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