Bank directors ended up with no insurance coverage in Zucker v. U.S. Specialty Insurance Co., 2017 WL 2115414 (11th Cir. May 16, 2017). The Eleventh Circuit, applying Florida law, applied a “prior acts” exclusion from D&O coverage to allegedly fraudulent transfers which were made after the policy’s inception date but which arose out of bank…
Category: Insurance
Insurer Liable for Intoxicated Employee’s Accident Under General Permissive Use Clause
An employee may be covered by an employer’s auto insurance policy as a permissive user even though the employee violates a company policy prohibiting driving while intoxicated. The Eleventh Circuit, in Great American Alliance Insurance Co. v. Anderson, 2017 WL 521560 (11th Cir. Feb. 8, 2017), assessed conflicting cases under Georgia law, but determined that a general permissive…
Florida STOLI policies have insurable interest
In consolidated Pruco Life Insurance Co. v. Wells Fargo Bank, N.A., 2017 WL 360512 (11th Cir. Jan. 25, 2017), the Eleventh Circuit applied guidance from the Florida Supreme Court and held that Stranger-Originated Life Insurance (“STOLI”) policies have an “insurable interest” as required by Florida Statute § 627.404, so a standard contractual provision limiting challenges…
Defending Insurance Company Not Liable for Legal Expenses Its Insured Incurred Before Notifying Insurer
An insurer is not required to pay the legal fees its insured had incurred before notifying the insurer of the litigation, according to the Eleventh Circuit’s decision in EmbroidMe.com, Inc. v. Travelers Property Casualty Co. of America, 2017 WL 74694 (Jan. 9, 2017). Applying Florida law, the court affirmed the district court’s grant of summary…
Insurer Not Bound by Settlement That Insured Negotiated in Bad Faith
Under Florida law, a settlement may not be enforced against an insurer where its insured did not negotiate in good faith, thus failing to adequately represent the interests of the party that would ultimately have to pay the settlement. The Eleventh Circuit, in an opinion published November 17, 2016, Sidman v. Travelers Casualty & Surety, 2016…
“Not an Insured” Defense Prevails Despite Absence of Prior Reservation of Rights
In an unpublished per curiam decision, Travelers Cas. & Surety Co. v. Stewart, the Eleventh Circuit rejected an argument that an insurance company was barred by the Georgia Supreme Court’s decision in Hoover v. Maxum Indem. Co., 730 S.E.2d 413 (Ga. 2012) from raising the defense that an individual was not an insured under the relevant…
“Demonstrated Responsibility” under the Medicare Secondary Payer Act: A Contractual Obligation Suffices
In its second major Medicare Secondary Payer (“MSP”) Act decision in a month, the Eleventh Circuit held that an insurer’s contractual obligation, without a judgment or settlement, can provide the “demonstrated responsibility” necessary to allow a claim against the insurer for double damages under the Act. MSP Recovery, LLC v. Allstate Ins. Co., 2016 WL…
Summary Judgment Vacated in Bad Faith Case
This week the Eleventh Circuit, applying Florida law, vacated summary judgment in favor of the defendant insurer in a case alleging bad faith for failure to communicate a settlement offer. Hinson v. Titan Ins. Co., ___ Fed. App’x ___, 2016 WL 4169117 (Aug. 8, 2016) . The insurer received the offer, dated December 21, 2007 and including among other…
Insurers May Be Liable for Double Damages for Failure to Reimburse Other Insurers Acting as “Medicare Advantage Organizations”
A divided panel of the Eleventh Circuit has joined the Third Circuit in holding that not only the government, but also a private insurer acting as a Medicare Advantage Organization (“MAO”), has a right of action for double damages when a primary payer fails to reimburse the MAO for payments the MAO has made. The…
Eleventh Circuit Vacates Summary Judgment Following Answer from Florida Supreme Court
In August 2016, the Eleventh Circuit asked the Florida Supreme Court to weigh in on whether a Florida alternative construction dispute resolution statute requiring notice of any construction dispute implicates an insurer’s duty to defend its insured against “suits.” The Florida legislature enacted Chapter 558 of the Florida Statutes in 2003 “establishing a notice and…