The Massachusetts Court of Appeals recently issued a decision on the parameters of additional insured coverage called Suffolk Construction Corp. v. Illinois Union Insurance Company, No. 10-P-1336 (Mass. App. Ct. Aug. 15, 2011). A copy of the decision can be found here by searching for “Appeals Court” and writing “08/15/2011” in the date field.
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Coverage & Claims
UK: Court of Appeal Considers the Effect of a Novation of a Contract on Advance Payment Guarantees
In the recent decision of Meritz Fire & Marine Insurance Co Ltd v Jan De Nul Nv & Anor [2011] EWCA Civ 827, the Court of Appeal dismissed the appeal by Meritz of the earlier High Court’s decision, previously reported here, that Meritz was liable under advance payment guarantees (APGs) it had issued in respect of three shipbuilding contracts (Contracts) to the respondent Buyers, despite the fact that the Contracts had been novated to a new company. …
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2011 Aviation Insurance Claims Near Record Low
Aon Aviation recently reported that as a result of the low number of aviation incidents in 2011, airline insurance claims are on track for a record low in 2011 as well. …
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PlayStation Hack – Sony Seeks Coverage Under Its CGL Policies
Sony insurers are engaged in litigation in New York state court to determine Sony entities’ claims for insurance coverage with respect to lawsuits, claims and potential attorney general actions arising out of the cyber-attacks earlier this year on the PlayStation Network (“PSN”), Sony Online Entertainment Network (“SOE”) and Sony Pictures Network, which allegedly resulted in unauthorized access to and alleged theft of personal identification and financial information of millions of customers. …
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California Court Requires Complete Horizontal Exhaustion of Liability Coverage Before Excess Coverage Can Attach
Addressing apportionment issues left unresolved by the California Supreme Court’s decision in Montrose Chemical Corporation v. Admiral Insurance Company, 10 Cal.4th 645 (1995), California’s intermediate appeals court has ruled that an insured that manufactured asbestos-containing products must first exhaust the limits of all of its primary insurance before it may claim benefits under its excess coverage. …
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Deepwater Horizon: Mississippi AG Files Lawsuit Against BP Alleging Misconduct With Its $20 Billion Claim Fund
The Associated Press reports that Mississippi Attorney General Jim Hood is suing Kenneth Feinberg, administrator of the Gulf Coast Claims Facility (GCCF), BP Plc’s (BP) $20 billion oil spill fund to get access to claims filed by coastal residents. …
Read More Deepwater Horizon: Mississippi AG Files Lawsuit Against BP Alleging Misconduct With Its $20 Billion Claim Fund
5th Circuit: No Coverage For Concealing Employee’s Drug Abuse In Letter of Recommendation
The Fifth Circuit Court of Appeals recently held that a CGL policy did not cover a lawsuit by one employer against another employer for misrepresentations in a letter of recommendation, even though these misrepresentations ultimately led to bodily injury. Preau v. St. Paul Fire & Marine Ins. Co., No. 10–30816 (5th Cir. June 23, 2011). …
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Reinsurance Association of America’s Re Underwriting Conference – July 20, 2011 (New York)
Greg Hoffnagle and Rob DiUbaldo of Edwards Angell Palmer & Dodge’s New York office will be presenting “Hydrofracking Risks & Opportunities: What Underwriters Need to Know” at 11:15 a.m. on July 20, 2011: …
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UK: High Court Rules on Whether Unoccupied Property Warranties Breached
In the recent judgment of Maritsave Ltd v National Farmers’ Union Mutual Insurance Society Ltd (2011) EWHC 1660 (QB), the High Court found in favour of Maritsave in respect of a claim for fire damage losses under a property insurance policy and rejected the Defendant insurer’s contention that Maritsave had not complied with certain unoccupied property warranties. …
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Deepwater Horizon: BP Asserts Gulf Has Recovered, Wants to Cut “Future Loss” Claims
BP Plc (BP) wants to significantly limit future claims related to its Deepwater Horizon disaster as the region’s economy recovers, the oil company said in a document made public on Friday and reported by Reuters. …
Read More Deepwater Horizon: BP Asserts Gulf Has Recovered, Wants to Cut “Future Loss” Claims