Hunton Insurance Recovery Blog

Hunton’s insurance team has offered its support on behalf of amicus curie United Policyholders in a brief to the First Circuit concerning the meaning of “surface water” in the context of a broad, all-risk property insurance policy?

In a COVID-19 insurance coverage lawsuit that Hilton Worldwide Holdings, Inc. filed against several insurers in Nevada state court, two recent rulings in favor of Hilton highlight the importance of strategic decisions early in a case. 

Insurers generally have a right to conduct a full, fair, and thorough investigation of a claim. Depending on policy language, one investigative tool available to insurers is the examination under oath, or an “EUO.” In an EUO, a representative of the policyholder is sworn-in, and an employee of or attorney for the insurer asks questions related to the claim. EUOs may be a condition precedent to coverage, meaning failure to appear and comply with a reasonable EUO request may void coverage for the claim. See, e.g., Quality Health Supply Corp. v. Nationwide Ins., No. 2021-06955, 2023 WL 3486573 (N.Y. App. Div. May 17, 2023); Raymond v. State Farm Fire & Cas. Co., 614 F. Supp. 3d 1303 (N.D. Ga. 2022).

A New York federal judge recently ruled that an insurer waived its late notice defense because a generic reservation of rights was insufficient to preserve it. As a result, the policyholder’s claim was preserved despite being submitted more than three months after the loss—a delay which would ordinarily be fatal under New York law. The decision underscores the importance both of timely submission of claims and careful attention to reservation of rights letters.

The False Claims Act continues to make headlines. The DOJ announced earlier this year that its fiscal-year recoveries—across 351 settlements and judgments—exceeded $2.2 billion, which was the second-highest number of settlements recorded in a single year. More recently, the US Supreme Court heard oral argument and is poised to issue a decision in a closely-watched FCA case that could radically change the balance of power between the government and industry.

The Superior Court of New Jersey Appellate Division recently upheld a lower court’s finding that the war exclusion in a property insurance policy did not preclude coverage for Merck’s claim stemming from a 2017 cyberattack. The decision is appropriately being heralded as a huge win for policyholders and an affirmance of New Jersey’s longstanding history of protecting policyholders’ reasonable expectations. We previously blogged about developments relating to the war exclusion and the Merck case when it was initially heard by the Appellate Division.

Artificial intelligence technology (“AI”) is poised to radically improve human functionality, although some say the technology is quietly learning how to overtake it. In the meantime, the insurance industry has been using AI to save time, attain consistency and improve risk mitigation. However, while the industry looks forward to cost savings and better business utilizing generative AI, some insurers have simultaneously cautioned policyholders about the potential risks that reliance on AI may pose. Insurer’s cautionary statements cast doubt on the integrity of their own reliance on the technology.

Six members of Hunton Andrews Kurth LLP’s insurance coverage team (Walter Andrews, Lorie Masters, Koorosh "KT" Talieh, Larry Bracken, Mike Levine and Scott DeVries) attended the American College of Coverage Counsel’s annual meeting in Chicago, where Lorie Masters received the College’s prestigious Thomas F. Segalla Service Award. The College annually bestows the award in recognition of dedication and service to the College. Named in honor of the College's first president, the award recognizes recipients that demonstrate Creativity, Visibility, and Persistence, three characteristics that embody the approach of Tom Segalla to his practice, volunteerism, and leadership in the practice of law.  In addition to receiving the award, Lorie, as well as Larry and Mike, presented during the conference.

Congratulations to Jae Lynn Huckaba, an associate in Hunton Andrews Kurth LLP’s Miami office and a member of the Firm’s insurance coverage team, for being named to the Miami Dade Bar Young Lawyers Section (YLS) board of directors.

The Miami Dade Bar YLS is comprised of attorneys aged 36 and under, competitively selected from among a large group of nominees.  As a member of the YLS board of directors, Jae Lynn will help organize member and networking events, as well as judicial receptions and CLE programs. 

Congrats, Jae Lynn!

In 2008, Illinois enacted the Biometric Information Privacy Act (BIPA) to protect individuals’ privacy rights in their biometric information, including retina or iris scans, fingerprint, voiceprint, hand scans, facial geometry, DNA and other unique, identifying biological information. Companies are now paying hundreds of millions of dollars to settle employee and consumer suits for BIPA violations. In a recent Reuters Legal News article, Hunton Andrews Kurth LLP attorneys Syed Ahmad, Rachel Hudgins and Torsten Kracht, discuss what BIPA is, how it applies to companies ...