In the underlying lawsuit for which coverage and a defense was requested, Yorktown was sued for violation of the Uniform Trade Secrets Act, intentional interference with contractual relations, intentional interference with prospective business advantage, unfair competition, and civil conspiracy (i.e., claims commonly seen in these types of cases). … [Read more...] about No Insurance Coverage In Seventh Circuit Trade Secrets Lawsuit
ConclusionThe NAIC’s issuance of its revised Network Adequacy Model Act is just the first piece in states’ ongoing efforts to address network adequacy concerns. At the next legislative session in each state, legislators will be confronting the access concerns widely discussed with the implementation of the Exchange marketplaces. These legislatures will likely introduce new network adequacy bills modeled on the NAIC and its recommendations. Therefore, stakeholders should closely monitor their state legislatures to ensure that they are aware of legislative initiatives and have the opportunity to engage in the policy discussion surrounding any related changes. … [Read more...] about National Association of Insurance Commissioners Updates Model Network Adequacy Law to Address Narrow Networks and Surprise Bills
There are legal ways for employers to encourage employees to get individual coverage, either through the exchanges or otherwise, and for employers to help employees pay for the coverage. For example, the IRS has suggested that an employer could offer employees a choice between a certain amount paid in cash or applied (e.g., by after-tax payroll deduction) to pay individual premiums. The key here is that the employee will receive the benefit without regard to whether he or she decides to purchase health insurance. … [Read more...] about Still Reimbursing Employees For Health Insurance Premiums? You May Be Subject To Significant Penalties!
Likewise, if a tenant or landlord, during a remodeling of space, shuts off a sprinkler system for a few days (without notifying the insurer) and a fire occurs, the owner again may lose its insurance coverage. As another example, if a tenant has a use clause that allows it to use its premises for any lawful purpose and the tenant changes its use of the premises, the existing sprinkler system may be compromised by alterations made to the premises to accommodate the new use by the tenant. If a fire then occurs, insurance coverage may be denied. … [Read more...] about Major Danger To Commercial Property Owners (And Their Lenders) — Protective Safeguard Endorsement To Property Insurance Policies
Even though the taxpayer readily met the five requirements, the IRS concluded that the policies did not qualify as insurance because they differed from policies with which most people are familiar. The IRS noted that the policies did not pay on the occurrence of a “fortuitous event,” such as a car crash. Rather, the policies paid, if at all, at the end of the lease term, which was not random or fortuitous. The court, however, held that losses under the policies were caused by fortuitous events outside the control of the taxpayer. The fact that a loss must persist to the end of the term of the lease does not make the events that cause the loss (e.g., recession, interest rate spikes, bank failures) any less fortuitous, the court stated. Thus, the Tax Court concluded that the contracts were insurance in the commonly accepted sense. … [Read more...] about U.S. Tax Court Upholds Favorable Definition of Insurance