Welcome to the latest issue of Insurance Insights, a gathering of notable legal developments and trends relevant to the insurance industry.
In this issue, fires alter the landscape of California insurance, an expert’s testimony isn’t a total loss, and more states follow the NAIC AI bulletin.
Special: California Home Insurance Landscape
New Regulations Aim to Encourage and Control
Since 2024, insurers have raised premiums and pulled back from the riskiest areas following a surge in natural disasters. We review consequential new regulations aimed at stabilizing the "home insurance crisis." Read more on page 3.
Coverage
The Importance of Grammar
Reviews ECB USA Inc. v. Chubb Insurance Co. of New Jersey, No. 22-10811 (11th Cir. Aug. 29, 2024). Read more on page 4.
No Coverage for COVID Business Interruption in Many States ...
Reviews Ungarean v. CNA, Nos. 11 WAP 2023, 12 WAP 2023 (Pa. Sept. 26, 2024); MacMiles v. Erie Insurance Exchange, No. 10 WAP 2023 (Pa. Sept. 26, 2024); and John’s Grill Inc. v. The Hartford Financial Services Group Inc., No. S278481 (Cal. Aug. 8, 2024). Read more on page 5.
... But North Carolina Nixes the Trend
Reviews North State Deli LLC v. The Cincinnati Insurance Co., No. 225PA21-2 (N.C. Dec. 13, 2024). Read more on page 5.
A Summary Judgment Switch in Biometrics Data Coverage Dispute
Reviews Tony’s Finer Foods Enterprises Inc. v. Certain Underwriters at Lloyd’s, London, No. 2024 IL App (1st) 231712 (Ill. Ct. App. Sept. 10, 2024). Read more on page 6.
Life Insurance
California Lapse Litigation: A Big Resolution in the Small Decision?
Reviews Small v. Allianz Life Insurance Co. of North America, No. 23-55821 (9th Cir. Dec. 10, 2024). Read more on page 7.
Summary Judgment for a COI Rate Change
Reviews PHT Holding I LLC v. Security Life of Denver Insurance Co., No. 23-1326 (10th Cir. Nov. 13, 2024). Read more on page 7.
P&C Class Actions
Class Actions Challenge Clarity of Anti-Stacking Language
Reviews Nutt v. Nationwide Insurance Co. of America, No. 2:24-cv-02228 (D. Ariz.). Read more on page 8.
Eastern District of New York Denies Certification in Total Loss Underpayment Class Action
Reviews Kronenberg v. Allstate Insurance Co., No. 1:18-cv 06899 (E.D.N.Y. Aug. 5, 2024). Read more on page 8.
Northern District of Georgia Undoes Expert Testimony Exclusion on Reconsideration
Reviews Brown v. Progressive Mountain Insurance Co., No. 3:21-cv-00175 (N.D. Ga. Sep. 11, 2024). Read more on page 9.
Annuities
A Potential Class Certification Defense
Reviews Parmenter v. Prudential Insurance Co., No. 1:22-cv 10079 (D. Mass. Aug. 22, 2024). Read more on page 10.
More States Adopt NAIC AI Bulletin
Over the summer and continuing this fall, state insurance departments have continued to adopt the National Association of Insurance Commissioners’ (NAIC) model bulletin on the use of AI in insurance. Read more on pages 11-12.
Sidebar — Did You Know?
How to Spot a "Nuclear" Juror
We break down a report from Illinois State University that identified factors that make a jury more likely to award a nuclear verdict. Read more on page 13.
Spotlight Interview
Tania Kazi (Rice)
Tania Kazi is a Partner with Alston & Bird's Insurance Litigation & Regulation Team and Editor in Chief of Insurance Insights. She was interviewed by Tiffany Powers, co-leader of Alston & Bird's Insurance Litigation & Regulation Team. Read more on pages 14-15.