Autism advocates have filed a lawsuit against the California Department of Managed Health Care to force the department to require insurance companies to pay for physician-ordered services. Insurers argue that physician-ordered behavior-modification therapy for autistic patients is educational and not a valid medical expense, resulting in a denial of coverage. Coverage disputes previously sent by [...]
Supreme Court OKs Punitive Damages in Tugboat Case
A tugboat crew member can pursue a punitive damages claim against his employer for injuries suffered on the job, the Supreme Court ruled on Thursday. In a 5-4 decision, the court found that there was no legal impediment to punitive damages in the case. The lawsuit stemmed from Atlantic Sounding Co.’s refusal to pay for [...]
Insurer Refuses to Pay Damages to Accident Victim
A New Jersey county’s insurance company is refusing to pay a multimillion dollar verdict awarded to an accident victim because it says the county mishandled a lawsuit stemming from the accident. State National Insurance Co., the excessive-liability insurance carrier for Camden County, claims that a county attorney did not properly prepare for trial or adequately [...]
Judge Awards Damages to Paralyzed Trucker
A Florida judge on Tuesday awarded $14.6 million to a truck driver paralyzed in a 2007 accident. According to an attorney for Derry Brown Jr., the suit was filed against National Casualty Co. as an uninsured motorist claim. The accident occurred when the driver swerved to avoid another driver who ran a stop sign. Brown [...]
Judge Clears Blue Cross in Rare Mid-Trial Verdict
In the first civil case to reach a verdict over a wave of insurance rescissions, a judge has ruled that Blue Shield of California did not act improperly in canceling the coverage of a man injured in an auto accident. The ruling by Orange County Superior Court Judge Peter Polos came in a rare mid-trial [...]
Jury to Weigh Insurance Rescission Case
A California jury is scheduled to hear opening arguments this week in the first case to decide whether an insurer should pay damages for rescinding a policyholder’s coverage. The 4th District Court of Appeal in Santa Ana had previously ruled that the defendant Blue Shield of California could not utilize a ‘wait and see’ strategy [...]
Court Rejects Insurer’s Appeal in Hurricane Case
The Louisiana Supreme Court has refused to hear an appeal by Louisiana Citizens Property Insurance Corp. challenging a ruling that allowed a Hurricane Katrina-related lawsuit filed after the two-year deadline for claims. The state 4th Circuit Court of Appeals had previously ruled that the clock for filing the lawsuit had been reset once the plaintiff [...]
Insurance Scam Bilked Millions from Retirees
A Texas company bilked older investors for about $30 million using a fraudulent life insurance securities scheme, state officials said Thursday. The state alleges that executives at National Life Settlements of Houston used the money to finance their personal lifestyles rather than purchasing life insurance policies on the behalf of clients. A Texas State Securities [...]
Health Net agrees to settle rescission lawsuits
The Woodland Hills, California insurer will pay as much as $14 million to close the books on litigation over the canceling of health policies. The lawsuits were brought on behalf of 800 former policyholders whose coverage was dropped after they submitted substantial medical bills. Under the deal, which won preliminary court approval Wednesday, individuals whose [...]
Kellogg Added to Salmonella Suit
An attorney for a Vermont family whose child was sickened after eating tainted peanut butter crackers said Thursday that they will add Kellogg Co. to their lawsuit. The addition of Kellogg as a defendant comes as the Peanut Corporation of Americas sole insurance carrier announced it would seek to limit liability in connection with the [...]

