Category Archives: Insurance Law

Certain Policyholders May Access Reinsurance

Policyholders of the insolvent Legion and Villanova Insurance companies who can show that they have third-party beneficiary rights have direct access to reinsurance proceeds, the Pennsylvania Supreme Court affirmed July 19 (M. Diane Koken v. Legion Insurance Co., No. 204 MAP 2003, Pa. Sup.).

California High Court Addresses Environmental Cleanup Costs, Specific Policy Language

Ruling in two separate cases seeking coverage for government-ordered cleanup costs, the California Supreme Court on Aug. 29 affirmed that coverage is potentially available under language broader than standard CGL policy language, while coverage is limited to court-ordered money judgments under other nonstandard excess language similar to case law involving […]

Water Exclusions for Katrina May Be Invalidated

The Mississippi Attorney General filed a lawsuit seeking to prohibit insurers from using water exclusions to deny coverage to property owners whose homes were destroyed or damaged by Hurricane Katrina (Jim Hood, attorney general for the State of Mississippi, ex rel. the State of Mississippi v. Mississippi Farm Bureau Insurance, […]

New York High Court Bars Stacking in Lead Exposure Case

Although an infant’s exposure to lead paint spanned three consecutive years in which a building owner carried liability insurance, coverage is limited to one annual policy limit, the New York Court of Appeals affirmed Oct. 25 (Christopher Hiraldo, et al. v. Allstate Insurance Co., et al., No. 139, N.Y. App.; […]

Quadrino Schwartz Applauds Recent Ruling by New York State to Invalidate Discretionary Clauses in He

Firm Believes Thousands of Policyholders Will be Aided by Decision In a landmark ruling, the New York State Insurance Department has taken critical action to help thousands of New Yorkers who file health and disability insurance claims under policies purchased by their employers. In issuing a Circular Letter, the Department […]

Predicted Problems With Long Term Care Insurance Claims Beginning to Surface

When the nations’ life, health and disability insurers began to lose money on their book of disability insurance business, they turned to increased sales of long term care insurance to beef up their balance sheets. But as the New York Times has reported this week, as the claims have now […]

Court Ruling Requires Insurance Companies to Pay Benefits to People with Pre-existing Conditions

In a key court ruling, New York’s highest court ruled that disability insurers must pay claimants under group policies who have pre-existing conditions. The insurance company may only exclude the first 12 months of payments but make full payment after that, starting the 13th month of a long term disability. […]

Long Awaited Legislative Victory in New York—Will Denials for Late Notice be Dead?

Both houses of the New York Legislature have passed a bill that would prohibit insurance companies from denying claims based upon alleged late filing of the claim (late notice). The late notice defense has been one of the most harsh and unfair bases for claim denials in New York. Claims […]

Governor Spitzer Issues a Veto on Late Notice Bill

In an unexpected twist, Governor Spitzer rejected a long-awaited bill that would no longer allow insurance companies to deny claims based upon “late” filing of the claim. He asked the Legislature to make certain improvements and revisions to the bill but did indeed embrace the concept that such a law […]

Governor Spitzer Issues a Veto on Late Notice Bill

In an unexpected twist, Governor Spitzer rejected a long-awaited bill that would no longer allow insurance companies to deny claims based upon “late” filing of the claim. He asked the Legislature to make certain improvements and revisions to the bill but did indeed embrace the concept that such a law […]