Specialty Lines

Expert Analysis

• NJ Ruling Does Not Bode Well For 'Stranger' Life Policies

  

  Since the height of stranger-originated life insurance policies over a decade ago, states have not provided much guidance on the legality of existing policies. However, the New Jersey Supreme Court's recent decision in Sun Life v. Wells Fargo finding such policies invalid could influence other states to follow suit, say attorneys at Cozen O'Connor.

• Ransomware Poses Tough Choices For State, Local Gov'ts

  

  This year, more than 70 state and local governments have been targeted by ransomware attacks. Despite a flood of legislation aimed at the problem, many state and local government information technology leaders still lack the funding and cybersecurity talent they need, says Korey Clark of State Net Capitol Journal.

• How Changing Corporate Purpose May Affect D&O Insurance

  

  A change in corporate focus from shareholder primacy to multiple constituencies, as suggested by the Business Roundtable's recent statement, may lead to reduced severity in shareholder claims, which historically have resulted in the most hazardous directors and officers liability insurance claims, says William Passannante of Anderson Kill.

• Reinforcing Insurance Coverage For Gov't Investigations

  

  The Superior Court of Delaware's recent decision in Conduent v. AIG Specialty Insurance adds to the authority that government investigations satisfy the "claim" and "wrongful act" definitions in claims-made professional liability insurance policies, and is instructive as to how policyholders can strengthen their coverage, say Donovan Hicks and Brian Scarbrough of Jenner & Block.

• Be Aware Of Risk When Providing Notice To Multiple Insurers

  

  Policyholders commonly place all potential insurers on notice without consideration as to possible downsides, but the Seventh Circuit's decision in Emmis v. Illinois National Insurance shows that this approach can result in exclusion of coverage, say Catherine Doyle and David Kroeger of Jenner & Block.

• Securing Insurance Coverage For NY Child Victims Act Claims

  

  Schools, religious organizations and similar institutions have less than a month to brace against an oncoming flood of claims under New York's Child Victims Act. Many insurers have been preparing for some time to limit or deny coverage, so policyholders will need a comprehensive approach to pursue it, says Tae Andrews of Miller Friel.

• 7th Circ. Decision Creates Minefield For Insurance Industry

  

  The Seventh Circuit's recent decision in Emmis v. Illinois National Insurance unfairly limits directors and officers coverage for policyholders, encourages litigation of insurance claims and also generates enormous liability exposure for brokers, say attorneys at Plews Shadley.

• PE Leaders' Many Hats Complicate D&O Policies

  

  Divergent outcomes in two recent Delaware Superior Court cases came down to the wording of insurance policies, highlighting coverage issues for private equity directors and officers serving in multiple capacities, say insurance practitioners from Hiscox and Bailey Cavalieri.

• Revived Sex Abuse Claims Raise Insurance Coverage Issues

  

  Legislatures across the U.S. are passing laws that reopen the statute of limitations for survivors of childhood sexual abuse, which inevitably leads to an avalanche of claims triggering disputes over the “per occurrence” limits in multiyear insurance policies, say attorneys at Blank Rome.

• Despite Notice-Prejudice Rule Win, Insureds Should Stay Wary

  

  In Providence Health v. Certain Underwriters at Lloyd's London, a Washington federal court applied a notice-prejudice rule to reject the insurer's late notice defense to coverage, but insureds should still pay attention to claims-made-and-reported policies' notice requirements because not all courts may reach the same decision, say Deepthika Appuhamy and Brian Scarbrough of Jenner & Block.

• To Fix Securities Class Actions, Put Damages Analysis First

  

  Securities class actions rarely go to trial — yet many are highly winnable by the defense. To better gauge whether a case truly meets the requirements to be a securities class action, we propose moving damages expert reports and discovery ahead of fact discovery, say Douglas Greene of BakerHostetler and John McCarrick of White and Williams.

• Where Trade Secret Preemption Meets Insurance Coverage

  

  There is a continuing judicial divide over the application of Uniform Trade Secrets Act preemption to non-trade secret information, and these court rulings can affect an insurer's ability to invoke a policy's trade secret exclusion, say Jay Bogan and Allen Garrett of Kilpatrick Townsend & Stockton LLP.

• Insureds Should Fear Exclusions With Broad Preambles

  

  A Florida federal court's recent decision in Colorado Boxed Beef v. Evanston serves as a cautionary tale to policyholders regarding the reach of broad preamble language to exclusions that may serve to subsume acts preceding or post-dating excluded conduct, say Catherine Doyle and Jan Larson of Jenner & Block LLP.