West Virginia Municipal Insurer Balks at Defending Sheriff

January 25, 2013Email ThisPrintNewslettersTweetArticle1 Comments

The insurance pool for West Virginia county governments asked a judge Thursday to declare that it has no obligation to defend a Jefferson County sheriff who resigned in disgrace and pleaded guilty in the beating of a bank robbery suspect.

Robert Shirley pleaded guilty earlier this month to violating the rights of suspect Mark Daniel Haines after a 2010 car chase. A second count of falsifying records was dismissed.

Shirley faces up to 10 years in prison and a $250,000 fine when sentenced in U.S. District Court in Martinsburg and is on home detention until then. No date has been set.

A related civil lawsuit that Haines filed, meanwhile, is set to be tried this fall.

But the West Virginia Counties Group Self-Insurance Risk Pool said it wants Judge John Preston Bailey to rule that it doesn’t have to defend Shirley in that case or pay any damages that may be awarded.

Its contract “specifically excludes coverage for, among other things, ‘Expected or Intended Injury,’ ‘Fraud and Dishonesty,’ and ‘Punitive Damages,”’ the motion argues.

The county risk pool also wants the judge to limit its obligations for two co-defendants, deputies Joseph Forman and Terry Palmer. It argues it should not have to pay any punitive damages if they’re awarded in these cases.

The risk pool also wants Bailey to let it formally intervene in the case and to address the coverage issues first.

Bailey didn’t immediately rule.

Shirley was re-elected to a new four-year term in November, even as he faced the beating allegations. The County Commission has named a temporary replacement but is still deciding how to permanently fill his post.

 

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: Southeast NewsTopics: municipal liability, West Virginia Counties Group Self-Insurance Risk Pool, West Virginia sheriff defenseHave a hot lead? Email us at newsdesk

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Insurer Aviva Nearing Sale of U.S. Business

November 8, 2012Email ThisPrintNewslettersTweetArticleCommentsAviva, the UK’s second-biggest insurer, is closing in on the sale of its underperforming U.S. business, a key part its drive to strengthen its finances in an uncertain economic climate and revive its share price.

The disposal, expected “reasonably soon,” is set to fetch less than the

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Bank of America Sues Bond Insurer MBIA Over Tender Offer

December 14, 2012Email ThisPrintNewslettersTweetArticleCommentsBank of America Corp. has sued bond insurer MBIA Inc. in a New York state court for allegedly interfering with a tender offer to buy MBIA’s bonds.

At issue is a change MBIA sought to make to the terms of some bonds to eliminate the risk that it might be considered in default if a troubled unit were put into rehabilitation or liquidation by New York regulators.

Bank of America countered with an offer to buy the bonds, saying it believed the changes would increase the risk of MBIA’s insurance unit being placed in rehabilitation or liquidation, which could jeopardize all policyholder claims.

On Thursday, Bank of America said it had purchased $136 million of a senior note in that tender, and issued a default notice over the attempt to change terms.

The bank claims the consent solicitation was the latest of MBIA’s “premeditated and subversive actions” since 2008 to benefit executives and stockholders to the detriment of Bank of America and other policy holders.

In the suit, filed late Thursday, Bank of America alleged that MBIA illegally interfered with its tender offer and asked for the consent solicitation and amendment to be declared invalid. The bank also is seeking punitive and other damages.

An MBIA spokesman did not have an immediate comment on the suit. MBIA shares fell 1.9 percent to $8.36 in morning trading.

 

 

Copyright 2012 Reuters. Click for restrictions.Email ThisPrintNewslettersTweetCategories: National NewsTopics: Bank of America MBIA lawsuit, bond insurer MBIA, MBIA tender offer interferenceHave a hot lead? Email us at newsdesk

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Superstorm Sandy Stress Scenarios Won’t Impact Insurer Ratings: Fitch

November 8, 2012Email ThisPrintNewslettersTweetArticleComments

Even an extreme $40 billion scenario for property/casualty insurance industry losses from Hurricane Sandy would not drive material rating changes for insurers, analysts at Fitch Ratings said today.

In a report providing a sensitivity analysis of the event for 10 individual insurers with the largest potential exposure to the event

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Connecticut Archdiocese Sues Insurer Over Misconduct Payments

November 28, 2012Email ThisPrintNewslettersTweetArticleComments

The Roman Catholic Archdiocese of Hartford, Connecticut, says its insurer has failed to cover more than $1 million the archdiocese paid out in recent years to settle four sexual misconduct cases involving priests.

The archdiocese filed a federal lawsuit last week against Interstate Fire and Casualty Company of Chicago. The lawsuit says the insurer was supposed to reimburse claims that exceed $200,000, but has failed or refused to make payments to the archdiocese.

An attorney for the archdiocese says the insurer owes the archdiocese more than $1 million.

A spokeswoman says the insurer doesn’t comment on pending lawsuits.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: East NewsTopics: Interstate Fire and Casualty Company of Chicago, lawsuit, priest sexual abuse, Roman Catholic Archdiocese of HartfordHave a hot lead? Email us at newsdesk

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Oklahoma Legislator Criticizes Insurer Premium Tax Credits

September 28, 2012Email ThisPrintNewslettersTweetArticle2 Comments

The head of a state House committee that’s scrutinizing millions of dollars in business tax credits is questioning the growth in credits used by insurance companies and whether the state should be reimbursing counties and schools for tax revenue lost when property owners take exemptions.

Rep. David Dank, R-Oklahoma City, took particular aim at the home office tax credit, which he said is granted to insurance companies based in the state that employ a certain number of workers. The home office tax credit grew from about $8.5 million in 2006 to almost $17 million in 2012, he said during a meeting of the House Tax Credits and Economic Incentive Oversight Committee.

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Maine-Based WC Insurer MEMIC Group Hires 2 Senior Underwriters

June 7, 2012Email ThisPrintNewslettersTweetArticleComments

The MEMIC Group, a workers’ compensation insurer headquartered in Portland, Maine, has appointed two senior underwriters: Mark Darragh for New Jersey and surrounding areas operations and Katrinka Casamassa for Pennsylvania operations.

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Verizon Sets Up Captive Insurer in N.J.; State Now Has 4 Captives

May 8, 2012Email ThisPrintNewslettersTweetArticleComments

New Jersey officials announced this week that the state approved a captive insurance company for telecommunications services giant Verizon Communications Inc.

The new captive, called Exchange Indemnity Company New Jersey (EICNJ), is a subsidiary of Verizon and the first captive insurer approved in New Jersey this year, and there are more companies with “applications in the pipeline,” according to state officials.

Last year, the department of banking and insurance approved three captives, after the state’s Captive Insurers Act was enacted in Feb. 2011.

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Minnesota Court: Insurer Must Provide Benefits After Gender Change

April 6, 2012Email ThisPrintNewslettersTweetArticleComments

A federal judge in Minneapolis, Minn., has ruled a health insurer improperly denied benefits to a spouse who had undergone a sex change operation.

U.S. District Judge Michael Davis said the health plan administrator for a United Parcel Service employee was wrong when it failed to cover his wife. Christine Radtke sued the health plan fund after it said she wasn’t legally married to Calvin Radtke. The fund countersued saying the couple fraudulently obtained a marriage license because Christine was born male.

The Star Tribune says Davis found the benefit plan imposed its own definitions of gender and marriage in violation of Minnesota law.

The judge’s ruling says state law recognizes a married person’s gender when the marriage takes place. Davis ordered the fund to reinstate Radtke and reimburse her for any covered expenses that she’s paid.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: Midwest NewsTopics: gender bias, Health and Benefits, lawsuit, MinnesotaHave a hot lead? Email us at newsdesk

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Missouri Senate Backs Study of State-Created Workers’ Compensation Insurer

April 6, 2012Email ThisPrintNewslettersTweetArticleComments

The Missouri Senate has endorsed the establishment of a special committee to study whether to change a state-created workers’ compensation insurer.

Senators gave initial approval on April 4 to a bill creating a five-member Senate panel to analyze whether Missouri Employers Mutual Insurance Co. should be sold, privatized or restructured.

The Columbia-based company was created under a 1993 law at a time when many small businesses were having trouble getting reasonable rates on workers’ compensation coverage. The company has flourished to the point that it now has the largest market share among Missouri’s workers’ compensation insurers.

A recent state audit noted that the company benefits from a federal tax exemption and has built up a surplus of more than $160 million. Some lawmakers question whether that tax exemption should continue.

Insurance agents in the state have asked lawmakers to avoid a hasty response to the state audit.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: Midwest NewsTopics: legislative, Missouri Employers Mutual Insurance Co., study, workers' compensationHave a hot lead? Email us at newsdesk

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Damaged Mass. School Delays Reopening, Cites Dispute With Insurer

April 5, 2012Email ThisPrintNewslettersTweetArticleComments

The reopening of a Roman Catholic school in Springfield severely damaged by last summer’s tornadoes has been delayed because of a dispute between the diocese and its insurer.

Officials with the Diocese of Springfield said Tuesday that while they estimate it will take $70 million to repair tornado damage to the building that housed both Cathedral High School as well as St. Michael’s Academy middle school, the insurance company has only agreed to a $15 million payment.

In accordance with state law, the diocese says it will take the matter to arbitration.

As a result the diocese is planning to extend the lease agreement on property it rents for Cathedral in Wilbraham.

A diocese spokesman says Bishop Timothy McDonnell is profoundly disappointed. The schools have about 600 students combined.

 

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Email ThisPrintNewslettersTweetCategories: East NewsTopics: insurance dispute, property insuranceHave a hot lead? Email us at newsdesk

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Rate Hike Proposal Sent to Board of Texas Windstorm Insurer

April 27, 2012Email ThisPrintNewslettersTweetArticleComments

In advance of the start of hurricane season, the actuarial underwriting committee of Texas’ property insurer of last resort for coastal counties is recommending a rate increase.

The committee on April 20 voted for a proposal that the board of directors of the Texas Windstorm Insurance Association file for an overall rate increase of 4.7 percent that would become effective on Oct. 1. The rate increase would vary somewhat within TWIA’s coastal territories

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