Hunton Insurance Recovery Blog

A case decided last week by the Sixth Circuit illustrates the importance of seeking bankruptcy claim policy amendments when placing D&O coverage. Indian Harbor Ins. Co. v. Zucker (6th Cir. Jun. 20, 2017) involved the application of the insured-vs.-insured exclusion and specifically, whether the policy’s insured-vs.-insured exclusion precluded coverage for a claim brought by a company’s liquidating trust, to which the company’s claims had been assigned by the company as debtor-in-possession after the company filed for bankruptcy. After the company’s claims were assigned to the liquidating trust, the trustee sued several of the company’s former executives for breach of fiduciary duty.

My partner, Walter Andrews, recently commented in a Law360 article concerning the top insurance cases to watch in 2017.  The Law360 article, titled Insurance Cases to Watch in the 2^nd Half of 2017, features Andrews commenting on the impact of Global Reinsurance Corp. of America v. Century Indemnity Co., case number CTQ-2016-00005, in the Court of Appeals of the State of New York, where he points out how a win for Global Re could result in a huge windfall for the reinsurer by saving on its defense costs, since reinsurers typically must pay both indemnity and defense costs.  Andrews also ...

Last week, my partner, Syed Ahmad, commented on some of the biggest insurance rulings of the year in a Law360 feature article that can be found here.  Among those decisions is USAA Texas Lloyd’s Co. v. Menchaca, where the Texas Supreme Court ruled that that policyholders may recover for bad faith in the absence of coverage under their policy.  Ahmad also discussed the Connecticut appeals court decision in R.T. Vanderbilt Co., Inc. v. Hartford Acc. And Indem. Co., and its ruling that insurers may not force policyholders to act as an insurer during policy periods in which insurance was not ...

Ride and homesharing technologies like Uber and Airbnb are now ubiquitous. Slice, an on-demand insurance provider, seeks to fill the gap between the demands of these on-the-go services and traditional insurance contracts, which may not cover home rental or car sharing. Slice users can pick and choose the dates for which they receive coverage. So, for example, a homeowner that rents her home to Airbnb renters for two nights can obtain coverage solely for those two nights.

Private equity investors face unique challenges when procuring or renewing their liability insurance programs. For example, investors typically must complete lengthy applications or sign warranty and representation letters from their prospective insurers that inquire into knowledge by any potential insured as to any acts or omissions that could potentially give rise to a claim. These overbroad and often vague inquiries are problematic for private equity investors who would theoretically have to interview every employee, manager, or director at every subsidiary, fund, and ...

Many commentators have predicted that the use of blockchain technology will greatly expand in the coming years. They envision uses in all types of business, including the healthcare sector, financial services arena, and supply chains.

Beginning last Friday, and still occurring today, one of the worst and most widespread malware attacks has impacted more than 200,000 victims in at least 150 countries, including Britain's National Health Service, FedEx, telecommunications companies Telefonica and Megafon, and automakers Renault and Nissan. The malware, known as "WannaCry," disables the user's computer system and all of its data. A note in a text file then appears stating that in order to unlock the computer, $300 worth of the digital currency bitcoin must be paid to the hackers. A countdown timer appears and the fee increases with time. The hackers threaten to delete all data on the computer system if payment is not sent within one week. Cybersecurity experts believe that the malware was sent to computers through "phishing attacks," which are emails that appear to be from reputable sources and include a download to a link that allows the malware to infect the computer. From these computers, the malware then spread to other computers on the network. One infected computer can spread this virus network-wide, and quickly.

Hunton & Williams' Insurance Coverage lawyers Syed Ahmad, Andrea DeField and Jennifer White were featured in the Firm’s Recall Roundup, where they discuss recent noteworthy decisions on insurance coverage for product recalls:

The interplay between primary and excess insurance is often litigated, especially in the context of settlements. On April 26, 2017, the First Circuit in Salvati v. Am. Ins. Co., 16-1403, 2017 WL 1488238, at *1 (1st Cir. Apr. 26, 2017) considered whether the settlement agreement entered into between plaintiff and the insureds/primary insurer was sufficient to trigger excess insurance coverage under the insured’s policy with American Insurance Company.

Bear Stearns' insurers were recently dealt a fatal blow, when the trial court granted Bear Stearns' motion for summary judgment and denied all insurers' motions (and defenses). See J.P. Morgan Sec. Inc. v. Vigilant Ins. Co., 2017 N.Y. Slip Op. 27127, 11 (N.Y. Sup. Ct. 2017). The court found that the documentary and testamentary evidence presented by Bear Sterns overwhelmingly demonstrated that Bear Stearns' misconduct profited their customers instead of resulting in Bear Stearns' own "ill-gotten gains." The court also found the settlement amounts reached by Bear Stearns in the SEC action and the private civil suits to be reasonable.