divorce Archives - The Insurance & Reinsurance Report

January 10, 2017 Duty to Defend

Heartbreak in the First Circuit: Court Dismisses Suit Against Insurer Over Coverage for Claims Related to Attorney’s Rocky Affair with Client

In Sanders v. The Phoenix Insurance Co. (1st Cir. Dec. 7, 2016), the First Circuit held that a homeowner’s insurance company had no duty to defend or indemnify its insured, a divorce attorney, against claims stemming from his “on-again/off-again intimate relationship” with his client. The First Circuit affirmed the lower court’s dismissal of a complaint filed by the assignee of the insured attorney against his insurer, Phoenix Insurance Company , for its failure to provide coverage.

As background, Phoenix issued a homeowner’s insurance policy to …

November 23, 2015 Life, Health, Disability & ERISA

Equity Trumps “Love.” And Designated Beneficiaries. With ERISA’s Blessing. Court Imposes Constructive Trust on Life Insurance Proceeds and Insurer Triumphs Through Interpleader

In McCarthy v. Estate of McCarthy, 2015 U.S. Dist. LEXIS 153107 (SDNY, November 10, 2015), a federal judge imposed a constructive trust on the proceeds of a life insurance policy in favor of the decedent’s ex-wife and children over his girlfriend. Equity required the constructive trust due to the decedent’s breach of his divorce agreement, regardless of who was actually the designated beneficiary.

Pursuant to the terms of a 2012 divorce settlement, the decedent agreed to a number of conditions regarding spousal and child …

July 15, 2015 Uncategorized

Rhode Island Supreme Court Takes Broad Approach to Household Residency

In Peerless Insurance Company v. Luppe, 2015 R.I. LEXIS 87 (R.I. June 17, 2015), the Rhode Island Supreme Court held that a minor child of divorced parents can be a resident of a non-custodial parent’s household.

The relevant facts are as follows: Maya Henderson’s parents were divorced. Maya’s mother had physical custody. Maya’s father had visitation rights. At some point after the divorce, Maya began staying overnight with her father two nights per week. Maya kept some of her clothing and toiletries at her father’s …

July 8, 2015 Life, Health, Disability & ERISA

Timing is Everything: Beneficiary Change Made During Divorce Action in Violation of NY’s Automatic Orders Ineffective

Reliastar Life Ins. Co. of New York v. Cristando, N.Y. App. Div., 2d Dept., June 3, 2015

Under New York law, while the designation of an ex-spouse beneficiary will be subject to automatic revocation in most circumstances, that same change cannot be made during the pendency of the divorce proceeding. The New York Appellate Division affirmed a trial court’s decision, finding such that a wife’s decision to change the beneficiary of her life insurance policy while her divorce was pending violated the “automatic orders” …