Temporary Substitute for Covered Auto

A federal court in West Virginia has reviewed what constitutes a substitute auto in the context of a commercial auto policy. The owner of JRH Trucking, Ltd., James Herrington, contacted a mechanic to service one of the company’s coal trucks.  The mechanic drove a flatbed truck to JRH’s facility, but was unable to complete the…

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Medicare Alert: MSAs & Liability Settlements

According to a release issued by the Centers for Medicare and Medicaid Services (CMS) late Thursday, June 9, 2016, CMS is again considering expanding its voluntary Medicare Set-Aside Arrangements (MSA) review process to include liability insurance settlements.  Per the official release, “CMS plans to work closely with the stakeholder community to identify how best to…

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Bad Faith – The Heat Is On

A federal court in North Carolina recently ruled that homeowner-defendants in a declaratory judgment action sufficiently pled a counterclaim for bad faith against their insurer. The homeowners filed a claim with their insurer after their residence suffered water damage while they were out of the country.  The insurer denied the claim after it determined that…

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Trigger of Coverage

Last week was the one-year anniversary of Harleysville Mut. Ins. Co. v. Hartford Cas. Ins. Co., 2015 WL 859586 (E.D.N.C. Feb. 27, 2015), in which the United States District Court for the Eastern District of North Carolina required five insurers to equally contribute to the defense of a mutual insured in connection with three underlying…

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