News & Analysis as of

Bad Faith Professional Liability

Lowenstein Sandler LLP

Fake It till You Break It: Insurance Coverage Implications for ChatGPT Mishaps

ChatGPT, an Artificial Intelligence (AI) chatbot created by OpenAI, has taken the legal world by storm since it first launched in November 2022. The chatbot gained notoriety for its cutting-edge ability to answer questions...more

Wiley Rein LLP

Policy Definition of “Claim” Applies to Policy Application

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A Connecticut federal court, applying Connecticut law, has held that a professional liability policy application imports the policy definition of the term “claim.” Admiral Ins. Co. v. Versailles Med. Spa, LLC, 2022 WL...more

Wiley Rein LLP

Insured Bank’s Acceptance of Loan Payments Without Good Faith Constitutes Uninsurable Loss

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The United States District Court for the Southern District of Ohio, applying Ohio law, has held that a bank’s professional liability policy afforded no coverage for an insured’s settlement of a lawsuit that sought...more

Wiley Rein LLP

Insured Cannot Bring Bad Faith Allegation When Coverage “Fairly Debatable”

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The United States District Court for Minnesota, applying Minnesota law, has affirmed a magistrate judge’s decision denying an insured’s motion to amend its complaint to add a claim for bad faith....more

Wiley Rein LLP

A Defending Insurer’s Reserving Rights and Seeking Declaratory Judgment Does Not Constitute Bad Faith in California

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A California federal court has held that neither sending a reservation of rights letter nor the mere filing of a suit seeking recission or declaratory relief while an insurer defends the insured amounts to a breach of an...more

Wiley Rein LLP

No Coverage for TPA in Claim Arising from Extracontractual Exposure to Insurer

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A federal district court has ruled that a third-party administrator’s professional liability policy does not afford coverage for a claim against the TPA arising from an excess judgment against the TPA’s...more

Carlton Fields

Pennsylvania Federal Court Refuses to Dismiss Bad Faith Claim, Even Though Insurer Timely Made Demanded Payments

Carlton Fields on

There have been more developments in Ironshore Specialty Insurance Co. v. Conemaugh Health System Inc., the case brought by Ironshore, as excess carrier, to seek reimbursement of amounts paid in an underlying medical...more

Manatt, Phelps & Phillips, LLP

Insurance Recovery Law - January 2016

Despite Finding Policy Application Misrepresentation, Jury Rules Against Policy Rescission - Why it matters: A federal jury concluded that Starr Surplus Lines Insurance Company did not have a valid basis to rescind the...more

Cadwalader, Wickersham & Taft LLP

Chancery Court Provides Lessons on Conflicts of Interest in a Sales Process – Holds Only Financial Advisor Open to Liability

In an October 1st decision (In re Zale Corporation), the Delaware Chancery Court dismissed claims that Zale Corporation’s directors breached their fiduciary duties in connection with Zale’s agreement to merge with Signet. ...more

Pillsbury Winthrop Shaw Pittman LLP

Perspectives on Insurance Recovery

Welcome to the latest edition of Pillsbury’s Perspectives on Insurance Recovery. As this 2015 edition of Perspectives demonstrates, our team is working on the most challenging issues—from cyber-insurance and complex claims...more

Pillsbury Winthrop Shaw Pittman LLP

Muddying the Waters on Policy Stacking Law: Perspectives on Insurance Recovery Newsletter – Summer 2013

In This Issue: - Federal Housing Finance Agency Proposes New Rules on Lender-Placed Insurance - J.P. Morgan Decision Curtails the Phantom “Restitution Defense” to D&O Coverage - Bad-Faith Claims ...more

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