Top East Region Insurance Journal Stories of 2024
What do a demolished bridge, insolvent taxi insurer, jailed gang member, upset Mets fan, malfunctioning elevator, drunk injured employee, and a convicted politician have in common? They are all central players in the some of the top Insurance Journal East stories of 2024.
Insurance Journal East readers closely followed continuing reports on the tragic Francis Scott Key Bridge collapse. That devastating crash and its social, economic, insurance and legal ramifications was the top East insurance story of the year. The recovery story will play out in 2025.
The challenges facing the taxi insurance market in New York also caught readers’ attention when the top insurer American Transit Insurance Co. was deemed insolvent. Other top stories out of New York were about the sentencing of a gang member who terrorized the fire restoration industry and New York Mets fans who claim the team committed a privacy error.
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The trial of former Senator Bob Menendez of New Jersey involving an insurance broker captured a lot of attention as did the racketeering allegations against George Norcross, a prominent New Jersey development, insurance and political power broker.
There were two claims stories that stood out: one about a woman trapped in an elevator and another about a drunk employee seeking workers’ compensation. A Massachusetts court ruling on construction defects and a new Virginia law on bad faith claims were also among the East’s top stories.
Baltimore Bridge Tragedy: Insurance Industry Readies for Historic Losses From Baltimore Bridge Tragedy
Immediately after the 985-foot-long Singapore-cargo vessel Dali struck one of supports of Baltimore’s Francis Scott Key Bridge, the structure collapsed into the water. Six construction workers died after falling off the structure into the Patapsco River; two survived. The city’s busy shipping port was closed and the local economy was disrupted. Recovering the workers’ bodies, removing the wreckage, refloating the cargo ship, and reopening the channel took months. The ship owner and operator wasted little time in attempting to limit their liability. Insurance losses were estimated and coverage issues were analyzed. Officials moved quickly to plan a bridge rebuilding and assist the community with recovery. Investigations were begun and the U.S. government, city, state, businesses and families of the deceased sued. Litigation is continuing. The ship owner and operator continue to blame others.
New York Taxi Insurance Crisis: New York City’s Biggest Taxi Insurer Is Insolvent, Risking Transit Meltdown
As a result of having been underpricing its coverage for decades, American Transit Insurance Co., which insures 60% of New York City’s taxis and rideshare vehicles, is insolvent. It has been ordered to find capital or sell. Its failure would be devastating for drivers, the New York economy, and vital transportation services. The New York City Council is considering slashing the amount of insurance coverage taxi and ride-share vehicles are required to maintain. The insurer is also being sued by Uber for allegedly encouraging litigation by not paying claims for its drivers. In December, ATIC filed a lawsuit seeking more than $450 million against 180 medical providers it alleges have been part of a huge fraud scheme that has taken advantage of it through the state’s no-fault insurance laws.
Down With Elevator Claim: Employee Who Was Trapped in Elevator Denied Workers’ Compensation Benefits
A health insurance company employee in Virginia who was trapped in an elevator for about 30 minutes was denied workers’ compensation benefits. The employee did not suffer any physical injury in the elevator but claimed she later suffered psychological effects including insomnia, headaches, and thoughts of feeling trapped.
No Biometrics Fan: New York Mets Hit With Class Action Alleging Biometric Privacy Violations
The company that owns the New York Mets professional baseball team faces a class action lawsuit alleging it collects and profits from fans’ biometric information at its stadium, CitiField, in violation of the city’s biometrics privacy law.
Gang Takedown: Gang Member Who Led Violent Takeover of Fire Restoration Industry Sentenced
A Bloods gang leader who recruited other gang members and used violence, threats of violence, and extortion to take over the fire restoration business in New York City and defraud insurance companies was convicted and then sentenced to 12 years in prison. He blamed ruthless competition and a culture of violence in the fire restoration industry for the accusations made against him by federal prosecutors.
Uncovered Defects: Construction Defects Not Covered Property Damage in Commercial Liability Policy
A home builder is not covered under the property damage coverage in its commercial liability policy for construction defects for which it was responsible. The Massachusetts Appeals Court held for the first time held that “construction defects, standing alone, do not constitute property damage within the meaning of a commercial general liability policy.”
Injured While Intoxicated: Worker Injured While Drunk on the Job Wins Claim Approval
An appellate court in New York upheld a decision of the Workers’ Compensation Board in favor of an injured employee of an electrical contractor company because his intoxication was not the sole cause of the accident.
Senator for Sale: Insurance Agent Pleads Guilty, Will Testify in Bribery Case Against Senator Menendez
A former New Jersey insurance agent agreed to testify in the federal corruption case against U.S. Senator Bob Menendez. In July, a jury convicted Menendez on 16 counts after a two-month trial in New York federal court, where prosecutors claimed the lawmaker sold his influence to protect businessmen and promote Egypt’s interests.
Crime Thriller: Norcross Defense Team Pans Racketeering Case as ‘Crime Thriller With No Crime’
Lawyers for New Jersey insurance executive and political power broker George Norcross III called the state’s indictment against him for alleged racketeering a “crime thriller with no crime.” In pleading not guilty, Norcross’ defense team said the indictment seeks to turn routine politics and everyday business negotiations into crimes of extortion, racketeering, kickbacks and bribery.
Faith in Virginia: Virginia Governor Faces Decision on Bad Faith Bill Opposed by Auto Insurers
Auto insurers had hoped Virginia Gov. Glenn Youngkin would veto a “bad faith” insurance claims measure they feared would “open the floodgates of litigation” and raise motor vehicle insurance premiums as much as $550 million. Instead Youngkin sought changes to the measure. On July 1, 2024, the law became effective and created a new bad faith cause of action that can be significant for underinsured or uninsured (UIM) carriers.
Here’s a video discussing popular East articles, produced by Wells Media Group editors and our new-media team.