Coverage & Claims

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The United States District Court for the District of Massachusetts recently held that an insurer had no duty to defend or indemnify its insureds where the insureds’ claims “arose out of” acts that occurred prior to the policy’s retroactive date. 

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Read More Massachusetts Federal Court Finds Retroactive Date Bars Coverage Despite Plaintiff’s “Continuing Scheme” Theory

Allianz Insurance Company – Eygpt (“Allianz”) v. Aigaion Insurance Company S.A. (“Aigaion”) EWCA Civ 1455 concerned the issue of whether negotiations for marine reinsurance had concluded in a contract. The negotiations were conducted via a broker between offices in different countries. …
Read More UK: Court of Appeal Considers Effect of Contractual Negotiations Conducted by E-mail

In an action for rescission of a professional liability policy, Maine’s highest court recently held that an insurer must prove both fraud and materiality as well as actual reliance.   In that case, Liberty Insurance Underwriters, Inc. v. Estate of Faulkner, Yor-07-180 (Me. Oct. 7, 2008), a attorney allegedly made misrepresentations in his 2003 application for a lawyer’s professional liability insurance policy when he responded “no” when asked  if he had “ever been disbarred or been the subject of reprimand, censure, sanction, or other disciplinary action” by the Bar. 

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Read More Maine Supreme Judicial Court Requires Fraud, Materiality, and Actual Reliance for Rescission of Professional Liability Policy

An Ohio District Court recently denied an insurer’s motion to bifurcate its insured’s bad faith counterclaim from its declaratory judgment coverage action and to stay related bad faith discovery. 

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Read More Ohio District Court Refuses to Bifurcate Bad Faith Counterclaim from Coverage Action and Refuses to Prohibit Disclosure of Pre-Denial Communications with Coverage Counsel

The Federal District Court for the District of Maine recently held that a discrimination suit was not covered by a directors and officers liability insurance policy where the suit alleged corporate actions through a company’s officers and directors, but named only the company as a defendant. 

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Read More Federal Court Rules That No D&O Coverage Exists For Discrimination Claims Despite Allegations Against Company’s Directors and Officers

Earlier this month, the Connecticut Superior Court for the Judicial District of Waterbury, Complex Litigation Docket, ruled that where a contractor was sued based on allegations of poor workmanship, the allegations are not covered by the contractor’s general liability policy because they do not constitute an “occurrence.” …
Read More Connecticut Court Rules That Insured Contractor’s Faulty Work Cannot Constitute Occurrence

The recent case of Van Der Giessen-de-Noord Shipbuilding Division B.V. v Imtech Marine & Offshore B.V. [2008] EWHC 2904 concerned the challenge to an arbitration award arising out of a marine construction dispute. Imtech had been hired by Van Der Giessen-de-Noord (GN) to carry out electrical works on a ship GN was building for Brittany Ferries. The works apparently suffered from delays, disruption and extra work which resulted in Imtech making a claim against GM and GM making a counter claim. 

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Read More UK: High Court Judge Sets Aside Arbitration Award Because of Irregularity and Unfairness

The New York Insurance Department has long prided itself for being an activist state regulator for insurance business underwritten in the world’s financial capital. …
Read More The New York Insurance Department Will No Longer Approve D&O Policies Lacking “Duty-to-Defend” Coverage Feature

A New York state trial court recently ruled that general contractors/owners were entitled to primary coverage under both their own commercial general liability policy and under a subcontractor’s general commercial liability policy as an additional insured. 

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Read More General Contractor Entitled to Primary Coverage Under Its Own CGL Policy And As An Additional Insured Under Its Subcontractor’s CGL Policy

The United States District Court for the Northern District of California recently denied several commercial general liability insurers’ motions to dismiss, holding that the insurers may be required to defend the makers of Bluetooth Headsets against suits alleging negligent design and unfair marketing even though the suits do not allege that the plaintiffs suffered any physical injuries. …
Read More Insurers May Be Required To Provide Defense Of Bluetooth Headset Cases Even Though Complaints Do Not Allege Physical Injury