Westlaw Topical Highlights: Insurance, August 23, 2013

August 23, 2013

insuranceWestlaw Topical Highlights for Insurance provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Insurance law.  A Westlaw subscription is required to access the documents linked from this page.

Health: ERISA did not preempt Insurance Commissioner’s application of statute governing nonprofit insurance executive’s compensation.  Maryland Ins. Com’r v. Kaplan, 2013 WL 4267854 (Md.)  ERISA did not preempt the Insurance Commissioner from determining that a state statute governing compensation for executives of nonprofit health insurer prohibited payment of post-termination compensation to the insurer’s vice president pursuant to the insurer’s supplemental executive retirement plan. Although ERISA regulated the retirement plan, the Commissioner’s determination did not affect the plan directly or change method of computing benefit under the plan, but rather found unlawful a grant of a service credit in the vice president’s employment agreement, which was not itself an ERISA plan, and regulation of compensation for executives of nonprofit entities was a traditional area of state regulation.  Maryland Ins. Com’r v. Kaplan,  2013 WL 4267854.(Md.)  (The full-text of the rest of the Topical Highlights are available within Westlaw Next, subscription required).

 Automobile: Collateral source rule did not render void, other insurance clause in policy applicable to UIM benefits for property damage.  Bardsley v. Government Employees Ins. Co. 2013 WL 4082345 (S.C.)

Bad Faith and Unfair Practices: Automobile insurer did not act in bad faith in failing to settle accident victims’ claims upon receiving settlement offer.   Purscell v. TICO Ins. Co. 2013 WL 2450825 (W.D.Mo.)

Automobile: Miniature all-terrain vehicle was “land motor vehicle.”   Paskiewicz v. American Family Mut. Ins. Co. 2013 WL 3198419 (Wis.App.)

Automobile: Due process required grace period of one year to notify motor vehicle owners of right to court-ordered reimbursement for duplicate premiums.  Garcia-Rubiera v. Fortuno 2013 WL 4305793 (C.A.1 (Puerto Rico))

Premiums: Premium lender’s security interest in funds deposited into broker’s account had priority over bank’s security interest.  American Bank, FSB v. Cornerstone Community Bank 2013 WL 4309622 (C.A.6 (Tenn.))

 Bad Faith and Unfair Practices: Common-law principle of fiduciary duty cannot provide the foundation for a violation of Connecticut Unfair Insurance Practices Act (CUIPA).   State v. Acordia, Inc. 2013 WL 4419116 (Conn.)

Automobile: Provision making UIM coverage excess only when insured is injured in third party’s vehicle was unenforceable.  Progressive Choice Insurance Company v. California State Automobile Association Inter-Insurance Bureau 2013 WL 4067918 (Cal.App. 2 Dist.)

Property: Property insurance policy’s definition of “obsolescence” did not include economic obsolescence.  Whitehouse Condominium Group, LLC v. Cincinnati Ins. Co. 2013 WL 3895851 (E.D.Mich.)