Diet Pill Makers Seeking Coverage For Suits Alleging False Advertising

Basic Research v. Admiral Insurance Co. (D.C. Utah, November 30, 2009)

Policyholders, manufacturers and marketers of the weight loss pill Akavar 20/50, filed a suit in federal court seeking coverage for defense costs from their insurers for underlying cases accusing the policyholders of false advertising. 


Some of the policyholders were first sued in November 2007 in a putative nationwide class action in Utah alleging that the ads regarding weight loss were misleading.  In December 2007, the policyholders were hit with a similar

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District Court Judge Refuses To Dismiss Proposed Class Action Against PMI Group Inc.

In Re:  PMI Group Inc. Security Litigation (D.California, November 2, 2009)

Judge Susan Illston of the U.S. District Court for the Northern District of California on Monday, November 2, 2009, denied the insurer’s request to dismiss a proposed securities class action against mortgage insurer PMI Group Inc.  Judge Illston found that the investors’ amended complaint cured the deficiencies outlined in a previous order dismissing parts of the lawsuit. 


The lawsuit was filed in April 2008 and accused the insurer of concealing the

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CaseWatch: Insurance Cases for October 21, 2009 Edition

Download American Automobile Insurance Company v. Marlow 

Download American Commerce Insurance Company v. Harris 

Download American Hardward Mutual Ins. Co. v. Escamilla 

Download American Transit Ins. Co. v. Brown

Download Atkins v. The Prudential Ins. Co. of America 

Download Bianchi, Jr. v. Florists’ Mut. Ins. Co. 

Download Buffalo Anesthesia Assoc. v. Gang

Download Cantrell v. Amica Mutual Insurance Company 

Download Catholic Healthcare West v. California Ins. Guarantee Assoc. 

Download Crawford v. St. Paul Fire and Marine Ins. Co.

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Insurer Seeks to Stay Discovery on “Secondary” Coverage Claims for Bad Faith and Breach of Contract.

Intel Corp. v. American Guarantee & Liability Insurance Co.
(N.D. California, October 1, 2009) 
Insurer seeks to stay discovery in anti-trust dispute regarding insured's bad faith and breach of contract claims,  arguing they are secondary to the primary coverage dispute.  Over eight years, the insurer issued excess and umbrella insurance policies totaling $300 million in coverage.  The coverage action stems from what has been called by the insured's counsel as the "largest anti-trust case that has been filed in the United States."  The underlying action
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District Court Divests Itself of Jurisdiction in CIGNA Class Action Settlement

Miller v. Connecticut Gen. Life Ins. Co.

(S.D. W. Va. Sept. 11, 2009)

The plaintiff filed suit against CIGNA to enforce an arbitration award for life insurance benefits. The plaintiff, a West Virginia resident, was a member of a settlement class in a class action brought against CIGNA in U.S. District Court for the Central District of California. The litigation involved alleged misrepresentations made by CIGNA and its agents to purchasers of life insurance proceeds. A Final Order from that action provided that the court

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Cases for CaseWatch: Insurance September 19, 2009 Edition

Download 21st Century Ins. Co. v. Superior Ct. of San Diego County

Download Admiral Insurance Co. v. Sonicblue, Inc.

Download Banaszak v. Progressive Insurance Company

Download Brookwood, LLC v. Scottsdale Ins. Co.

Download Brown v. Progressive Gulf Ins. Co.

Download Butler v. First Acceptance Ins. Co., Inc.

Download California Dairies, Inc. v. RSUI Indemnity Company

Download Deutsch v. State Farm Fire & Casualty Co.

Download Employers Mutual Casualty Co. v. Accent Windows, Inc.

Download Fireman's Fund Insurance Company v. Discover Property & Casualty Insurance Company

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Cases Cited in Professional Liability Monthly

Download Great American v. North Seattle Comm.

Download Sprint Nextel v Executive Risk

Download HLTH Corp. v. Federal Ins.

Download Herley Ind. v. Federal Ins.

Download Audit Bureau v. Axis Spec

Download Admiral Ins. v. SONICblue

Download California Diaries v. RSUI Indem.

Download Hilco Capital v. Federal Ins.

Download AIG v. Tussey

Download Mortgage Express v. Tudor Ins.

Download Chartrand v. Illinois Nat.

Download US Fidelity v. VOA Assoc

Download American Auto Ins. v. Lifeco

Download Westport v. Markham Group

Download Medical Protective Co. v.

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Insurers Settles With Broadcom For $118M For Backdating Suit

In Re Broadcom Corp.

(Central District, California)


A proposed partial settlement with numerous insurers is set to allow Broadcom Corp. to recovery $118 million for a derivative suit involving a $2.2 billion stop options backdating scheme.  Most of the funds come from the insurers providing Broadcom Corp. with directors and officers coverage.


The proposed settlement was filed Friday in the U.S. District Court for the Central District of California.  The settlement would resolve the consolidated federal derivative suit for most of

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Insurance Legislative Update for United States


Senate Bill 119

(Introduced Feb. 2, 2009, Last Action July 27, 2009-To Governor)

This bill extends the expiration date of existing law that prohibits the bringing of an action against an insurer in providing professional liability insurance policies to health care providers for statements made in bad faith unless the statement was made under a specified circumstance.


House Bill 876

(Introduced Jan. 19, 2009, Last Action July 22, 2009-In Joint Committee)

This bill discourages uninsured motorists by limiting their bodily injury liability compensation.

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Bi-Weekly Insurance Legislative Update (50 States)


Senate Bill 156

(Introduced Feb. 12, 2009, Last Action July 13, 2009)

This bill amends existing law that provides for prevention, detection and investigation of insurance fraud to include Workers’ Compensation and requires insurers to disclose Workers’ Compensation insurance fraud incidents.  It also protects a person sharing information pursuant to the authorization from civil liability.


House Bill 201

(Introduced Apr. 7, 2009, Last Action July 9, 2009)

This bill relates to automobile property casualty and liability insurance policy and provides for non-renewal

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