In In Re State Farm Automobile Insurance Co. and Lindsey Nicole Dessart, 712 S.W.3d 53 (Tex. 2025), the Texas Supreme Court clarified the proper procedure for litigating bad faith claims related to uninsured/underinsured...more
Schnatzmeyer v. State Farm Ins. Co., No. 3:23-CV-02820-K, 2025 WL 1697505, at *1 (N.D. Tex. June 17, 2025). In a case involving two overlapping freeze claims—and a substantial array of legal issues affecting insurers in...more
Property Insurance/Replacement Cost - Homeowners Did Not Substantially Meet Policy’s Condition Precedent to Recover Replacement Cost Value - Insurer Did Not Waive Conditions - Henderson v. State Farm Fire and...more
In State Farm Fire & Cas. Co. v. Coway USA, Inc., No. 22-cv-3516, 2024 U.S. Dist. LEXIS 192849, the United States District Court for the Eastern District of Pennsylvania (District Court) considered whether the plaintiff...more
In PAJ, Inc. v. Hanover Ins. Co., the Texas Supreme Court set forth the “notice-prejudice rule,” which states that unless an insurer was prejudiced by an insured’s delay in giving timely notice of its claim or suit, an...more
Merchants Preferred Insurance Company filed a declaratory judgment action in New York seeking a declaration that it had no duty to defend or to indemnify its insureds in an underlying Florida personal injury action arising...more
The recent decision of Marcantel v. State Farm Fire, No. 2:22-CV-01511, 2024 U.S. Dist. LEXIS 111077 (W.D. La. June 24, 2024) offers valuable lessons for policyholders regarding the importance of cooperation in the insurance...more
The parent of an infant sued Kim Eichle for Eichle’s alleged negligence in serving alcohol to her houseguest, Jacob Russo, who allegedly assaulted the infant, and for negligence in failing to keep the sidewalk at her...more
New York Department of Financial Services (DFS) is concerned that AI’s self-learning behavior increases the risks of unlawful or unfair discrimination. DFS will audit insurers’ use of AI. Such insurers need to maintain...more
In our January insurance update, we include three state cases addressing some less common situations. It’s not often that a pollution exclusion is interpreted in the context of an auto policy. But the South Dakota Supreme...more
The insureds owned a house covered by an all-risk homeowner’s insurance policy issued by Erie Insurance Company of New York that provided coverage for damage to the house unless specifically excluded. The policy contained an...more
We bring you our March Insurance Update. As college basketball programs embark on the road to the final four, we select our top four insurance cases from the past month. In a dispute over the priority of coverage, the...more
First Department Affirms That Business Interruption From COVID-19 Not Covered- The insured purchased a commercial property policy that included business interruption coverage for its restaurants. The restaurants were...more
The Supreme Court of Florida issued a significant decision regarding the calculation of personal injury protection (PIP) benefits in MRI Associates of Tampa, Inc., etc. v. State Farm Mutual Automobile Insurance Company;...more
In response to the wave of litigation over COVID-19-related business income claims, an overwhelming majority of courts considering the relevant policy language — approximately 80% — have found no coverage as a matter of law...more
Marriott International Inc. (Marriott) has released new numbers relating to its Starwood Hotel’s reservation database by stating that more than 5 million passport numbers were stolen in the database. ...more
State Farm has become the very first company in the United States to receive a waiver from the Federal Aviation Administration (FAA) for drone operations over people and beyond visual line of sight (BVLOS). The waiver is...more
Becca Franco was involved in a car accident in 2015. Franco submitted a claim to her insurer, State Farm, for underinsured motor vehicle and medical payment benefits. Sixteen months later, Franco filed suit against State...more
Florida has been plagued with insurance fraud for decades. All insurance coverages are susceptible to fraud, but scams are especially prevalent in the context of automobile accidents. Staged crashes, patient brokering,...more
Florida first-party property insurers have seen a dramatic rise in assigned insurance claims. In the typical scenario, an insured assigns her rights to receive insurance proceeds from a loss to a contractor in return for the...more