Seventh Circuit Rules Policyholder not Entitled to Coverage for Counsel Chosen Without Insurer Approval

National Cas. Co. v. Forge Industrial Staffing Inc. (7th Cir. [ Ill.] June 3, 2009) A policyholder declined to accept insurer-appointed counsel to defend it against claims before the Equal Opportunity Employment Commission because it was fearful that the insurer would control the defense in such a way that would preclude coverage.  The court held that the underlying claims were not mutually exclusive, one of which would be covered and one of which would not be covered.  As such, appointment
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GS Insurance CaseWatch – Bi-Weekly Update of Recent Appellate Insurance Decisions in U.S.

Update of All New Coverage Decisions in U.S.for June 8, 2009 CaseWatch: Insurance is free and provides timely summaries of and access to insurance law decisions from all the appellate courts of the United States. It is distributed bi-weekly. For ease of reference, CaseWatch is organized by topic. Jurisdictional information and links to full text decisions, where available, are found in individual case titles. Click here to download CaseWatch   By Daniel W. Gerber http://www.goldbergsegalla.com/attorneys/Gerber.html
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Court Holds Insurer Did Not Act In Bad Faith By Not Obtaining Release Of Its Insured As Part Of Settlement Payment

ACCC Ins. Co. v. Tammy Renee Carter et al, (United States District Court, Northern District of Georgia, May 26, 2009) This action involved a unique question under Georgia law regarding an alleged bad faith refusal to pay claim and whether an insurer acts in bad faith in paying the policy limits of its insured’s policy without conditioning payment on the release of its insured where claimants’ counsel demanded payment of the face amount of its insured’s policy, but expressly refused
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Legislative Update for All U.S. States

Connecticut Senate Bill 212 (Introduced Jan. 21, 2009; Last Action May 19, 2009) This bill prohibits insurers from charging a cancellation fee when an insured cancels its automobile liability insurance policy if the insured has been a customer of the insurer for at least one year. Florida House Bill 845 (Introduced Feb. 11, 2009; Last Action May 19, 2009) This bill relates to self insurance funds and requires an application for Workers Compensation coverage issued by a group self insurance
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Madoff Related Suit Against Fairfield Greenwich Group for $3.5 billion

Irving Picard, trustee for Bernard Madoff's business and representatives of investors, sued the Connecticutbased company, Fairfield Greenwich Group (“FGG”) for $3.5 billion.  FGG was the largest feeder fund and the allegations are that it therefore should have been aware Madoff was engaged in fraud.  The monetary calculation of $3.5 billion represents money that FGG received from Madoff on behalf of clients.This suit is one of many brought or to be brought by the trustee in charge of liquidating the assets
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CGL Does Not Cover Abu Ghraig Torture Claims

CACI International Inc. v. St. Paul Fire and Marine Ins. Co. (11th Cir. ( Va.), May 14, 2009) The policies at issue limited coverage to the United States and Canada, the policyholder argued that claims regarding negligent hiring happened in the United States.  The 11th Circuit held that the underlying complaints cannot be read to allege that the events happened within the coverage territory based on established principals of insurance law where the place of the injury, in this case
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When is Expert Testimony Appropriate for Bad Faith Claims?

There is a decision out of the Eastern District of Kentucky which deals with the qualifications of an expert in a bad faith case. In applying Daubert and its progeny, the court excluded the testimony of a former judge that had been offered as an expert on bad faith issues. See Sullivan v. AIG, 2008 U.S. Dist. LEXIS 56446. Contrast this case with holding of the a case out of the Western District of Wisconsin where the court allowed the
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DRI Announces New Counsel Meeting Incentives for New Economy – In-House Can attend at No Cost

DRI has issued new incentives which allow a corporation to have a meeting with its outside counsel at the DRI Annual Meeting in Chicago October 4-7 at no cost to the company. Travel is included. Download Detailed Incentives Program Download DRI 2009 Annual Meeting Brochure For more information contact: Dan Gerber at dgerber@goldbergsegalla.com
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Claims Made During Extended Reporting Period Deemed Uncovered

James River Insurance Co. v. Alliance Children's Servs., Inc. (D. Mass. May 8, 2009) A CGL insurer sued its policyholder, seeking a declaration that it was not obligated to defend or indemnify it in an underlying wrongful death action because the claim was not made during the policy period. The court granted the insurer summary judgment, finding that the policy expressly required that, to be covered, a claim must be made during the policy period, not during the extended reporting
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Life Insurance Carrier Waived Right to Rescind Policy, Despite Finding Action was Timely Commenced

Security Mutual Life Ins. Co. v. Rodriguez (New York State, Appellate Division, 1st Dept.)  May 26, 2009 Although life insurer’s action was not barred by the incontestability clause, the court held it waived its right to rescind the policy after it continued to collect premiums.  There, the insurance carrier commenced an action seeking to rescind a life insurance policy based on the policyholder’s alleged false and misleading representations.  Pursuant to the statutory requirement of New York Insurance Law §3203, the
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