Articles by Jim Sams

Nevada Businesses Brace for Ban on ‘Eroding Limits’ Liability Policies

A new Nevada law that takes effect Oct. 1 prohibits liability insurance policies with “eroding limits,” potentially increasing the cost of premiums and reducing availability, insurance experts say. Such policies, also called “wasting,” “burning” or “defense within the limits” policies, …

Professional Services Exclusion Didn’t Bar False Claims Act Settlement

A mortgage lender accused of violating the False Claims Act by approving government-backed loans that did not meet federal guidelines can seek to recover the $15 million it paid to resolve the allegations from its management liability insurer, the Delaware …

Feds Tell Banks to Be on Alert for Payroll, Work Comp Premium Fraud Schemes

A US Treasury Department unit that investigates financial crimes has directed banks to send alerts when they come across suspicious activity that indicates a business is using check cashing companies to avoid payroll taxes and reduce workers’ compensation premiums. Such …

11th Circuit Panel Affirms Dismissal of Discrimination Suit by White TV Weatherman

The use of a form that identified an employee’s race as part of a company’s termination process was not evidence that the employer discriminated against him because he is white, a divided panel of the 11th Circuit Court of Appeals …

AK Supreme Asked Whether Pollution Exclusion Applies to Carbon Monoxide Death

A federal appellate court is asking the Alaska Supreme Court to decide whether the pollution exclusion in a homeowner’s insurance policy bars recovery for the death of a 17-year-old boy who was poisoned by carbon monoxide emitted by an improperly …

Litigation Funders Seek to Intervene in MMA Disciplinary Actions

Two litigation funding firms are seeking to intervene in disciplinary proceedings against McClenny Moseley & Associates after a federal judge in Louisiana ruled that the law firm has no right to any attorney fees for 201 hurricane-damage claims. The Equal …

Calif. Appellate Court Revives Allstate Whistleblower Suit Against Radiology ‘Broker’

A California appellate court revived two whistleblower lawsuits filed by Allstate against a Los Angeles-area business owner who has no medical license but allegedly operated medical practices that referred auto and workers’ compensation claimants to radiologists in order to send …

Social Media Investigations Are a Winning Strategy for Insurers

GARDEN GROVE, California — If you’re a plaintiff in an injury lawsuit against your insurer, you might want to ask your wife not to post videos online of you frolicking in a swimming pool. An Instagram post by a woman …

Claims Pros Warned About Confirmation Bias and Inflated Line Items

GARDEN GROVE, California — The charred remains of a dog found among the ruins of a house that was destroyed in a sudden fire added an air of legitimacy to the insurance claim. For sure, homeowners sometimes resort to arson, …

Partner Reveals McClenny Moseley Raised $40 Million from Private Investors

McClenny Moseley & Associates, the embattled law firm that filed thousands of hurricane-damage lawsuits in Louisiana, raised a total of $40 million from private investors, one of its founding partners said during a court hearing on Tuesday. Zachary Moseley provided …