News & Analysis as of

Public Policy Insurance Industry

Sheppard Mullin Richter & Hampton LLP

John’s Grill, Inc. v. Hartford Financial Services, Group, Inc.: Illusory Coverage, Unambiguous Policy Language, and the...

In its latest Covid-era coverage case, John’s Grill, Inc. v. Hartford Financial Services, Group, Inc., the California Supreme Court held that an insured cannot use the “illusory coverage doctrine to transform the policy’s...more

Holland & Knight LLP

U.S. Supreme Court Rules on Choice-of-Law Provisions in Marine Insurance Contracts

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In a 9-0 decision, the U.S. Supreme Court held on February 21, 2024, that choice-of-law clauses in marine insurance contracts are presumptively enforceable under federal maritime law. These clauses should be enforced unless...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC

On February 21, 2024, the U.S. Supreme Court decided Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC, No. 22-500. The Court held that choice-of-law provisions in maritime contracts are presumptively enforceable...more

Pillsbury - Policyholder Pulse blog

Heads I Win, Tails You Lose: Washington Supreme Court Rejects Insurers’ Efforts to Sell Illusory Insurance Coverage

Courts don’t look kindly upon insurance company shell games. In Preferred Contractors Ins. Co. v. Baker & Son Construction, the Washington Supreme Court slapped down an insurer’s attempt to manipulate the type of general...more

Pillsbury - Policyholder Pulse blog

U.S. Supreme Court to Decide Whether State’s Public Policy Interest Could Sink Insurance Policy’s Choice-of-Law Provision

The rare insurance dispute has appeared on the horizon for the nation’s highest court. Last month, the U.S. Supreme Court granted certiorari and agreed to take up the case of Great Lakes Insurance SE v. Raiders Retreat Realty...more

Rivkin Radler LLP

Insurance Update - December 2021

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Our December Insurance Update features four cases. The Minnesota Supreme Court decides if a resident-relative exclusion violates public policy. A Texas appellate court considers, for a second time, if damage from...more

White and Williams LLP

M&A Objection Lawsuits and Claims for Inadequate Consideration: A “Bumpy” Road for D&O Insurers

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Although the volume of merger objection litigation has gone down somewhat over the last few years, most large public-company M&A deals are challenged in court. These lawsuits usually include a number of claims against the...more

Hinshaw & Culbertson - Insights for Insurers

Insurance Policy Choice of Law Provision Again Faces Public Policy Challenge

A Missouri federal district court became the second court within the past 15 months to consider whether a state's public policy overrides an insurance policy's choice of law provision. Maritz Holdings v. Certain Underwriters...more

Hinshaw & Culbertson - Insights for Insurers

California is the Next State to Request Business Interruption Coverage Information from Insurers

On March 26, 2020, California's Department of Insurance (the "Department") issued an "urgent data survey" to all admitted and non-admitted insurance companies, seeking information about coverage for COVID-19 business...more

White and Williams LLP

Despite No Privity of Contract, Indiana Appellate Court Holds Additional Insured with UIM Claim May Sue for Bad Faith

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Your friend invites you out to dinner. She offers to pick you up since your house is on the way. As you head toward the restaurant, your friend’s car is sideswiped by a driver who blew through a red light. You are seriously...more

Harris Beach PLLC

State Appellate Court Affirms Out-of-State Liquidation Order Not Entitled to Full Faith and Credit

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A risk retention group (RRG) is a state-chartered insurance company that insures commercial businesses and government entities against liability risks, including medical malpractice. In 2017, Oceanus Insurance Company, RPG,...more

Holland & Hart - Employers' Lawyers

Shifting the Risks of Employer’s Economic Loss Resulting from Employee Injury: Keyperson Insurance in New Mexico

What’s a New Mexico business to do if one of its key employees is absent from work due to a non-work-related injury? A pair of cases, one from the United States Court of Appeals for the Tenth Circuit, and another recently...more

Payne & Fears

California Supreme Court Strikes Blow to Insurers' Choice-of-Law Provisions

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The California Supreme Court has struck a blow to insurers' attempts to contract out of more policyholder friendly jurisdictions, holding that the notice-prejudice rule is a fundamental public policy. Pitzer College v. Indian...more

Farella Braun + Martel LLP

3 Lessons For Calif. Insureds From Late-Notice Rule Decision

In Pitzer College v. Indian Harbor Insurance Company, the California Supreme Court resolved two previously open questions in insurance law: (1) it concluded that the notice-prejudice rule is a fundamental public policy of...more

Saul Ewing LLP

Insurers Beware: Choice of Law Provisions May be Overridden by Public Policy Provisions

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In answering two questions posed to it by the Ninth Circuit Court of Appeals, the California Supreme Court on August 29, 2019, addressed two significant issues: 1) whether California’s common law notice-prejudice rule is a...more

Farella Braun + Martel LLP

California Supreme Court Ruling Clarifies That the Notice-Prejudice Rule Is a Fundamental Public Policy That May Override Choice...

In Pitzer College v. Indian Harbor Insurance Company, the California Supreme Court resolved two previously open questions in insurance law: (1) it concluded that the notice-prejudice rule is a fundamental public policy of...more

Pillsbury - Policyholder Pulse blog

California Supreme Court Sides with Policyholder in Critical Notice-Prejudice Case

In November 2018, we noted that the California Supreme Court had agreed to resolve Pitzer College v. Indian Harbor Insurance Company, a case that hinged on the importance and application of California’s notice-prejudice rule....more

Haight Brown & Bonesteel LLP

California Supreme Court Finds that the Notice-Prejudice Rule Applicable to Insurance is a Fundamental Public Policy of the State

In Pitzer College v. Indian Harbor Ins. Co. (No. S239510, filed 8/29/19), the California Supreme Court held that California’s notice-prejudice rule is a fundamental public policy in the insurance context, supporting the...more

Maynard Nexsen

Insurance Policy Notice and Cooperation Clauses Survive Challenge

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South Carolina’s courts have long and consistently articulated that insurance policies are contracts, governed by the general rules of contract construction. Our courts have just as consistently held that insurers may include...more

Maynard Nexsen

Insurance Policies: Where Is the Proper Balance Between Limitation of Liability and Adherence to Public Policy

Maynard Nexsen on

It is well established that policies of insurance are contracts, subject to basic contract law. While parties are generally permitted to contract as they wish, such privilege is not absolute in the context of insurance;...more

White and Williams LLP

NJ Supreme Court Rules STOLI Policies Violate Public Policy and Void at the Outset

On June 4, 2019, in a win for New Jersey residents and life insurance companies with policies underwritten in New Jersey, the Supreme Court of New Jersey took a stand against Stranger-Originated Life Insurance (STOLI)...more

Pillsbury - Policyholder Pulse blog

California Supreme Court to Decide Whether Its “Notice-Prejudice” Rule Supersedes Competing Law from Other States

Before a court can resolve a dispute, it often needs to determine what law applies to that dispute. In certain insurance cases, that question will appear to have an easy answer. Some policies include explicit choice-of-law...more

Bradley Arant Boult Cummings LLP

Increased FTC Enforcement Highlights Need for Cyber-Regulatory Coverage

Regulatory components to cyber insurance policies are becoming increasingly valuable as data-breach enforcement continues to surge. The Federal Trade Commission (FTC or Commission), the nation’s primary privacy and data...more

Carlton Fields

Missouri Court Finds Insurance Contract’s Arbitration Clause Unenforceable As Against Public Policy

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This case arose from an accident at the General Motors plant in Kansas City, Kansas, where an electrician employed by Capital Electric Construction Company, Inc. was severely injured due to negligence by Solaris Power...more

Carlton Fields

Missouri Court Holds Arbitration Clause In Insurance Contract Unenforceable As Against Public Policy And Under Governing Law

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A Missouri district court recently held a mandatory arbitration provision was unenforceable in an insurance coverage dispute after an electrician was injured on the job and won an uncontested judgment in state court against...more

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