The Kentucky Court of Appeals recently reversed a trial court decision granting summary judgment to an insurer, finding that the question whether the insured misrepresented his criminal history by signing an application completed by an agent was a disputed question of fact.
Coverage & Claims
FDIC Sues IndyMac’s Primary Mortgage Insurer, PMI, Over Coverage for $1.9 Billion in Outstanding Mortgages
The Federal Deposit Insurance Company (“FDIC”), as conservator of IndyMac Federal Bank F.S.B. (“IndyMac”), recently filed a complaint seeking a declaration that PMI Mortgage Insurance Corp. (“PMI”) could not rescind coverage for 5,565 residential mortgages. IndyMac Federal Bank F.SB. by the Federal Deposit Ins. Corp. as Conservator v. PMI Mortgage Ins. Co., No. 08-CV-04303 (N.D. Cal. Sept. 12, 2008).
SDNY Judge Transfers Coverage Dispute to California Based on Location of Witnesses and Events in the Underlying Action
By Troutman Pepper Locke on
A New York federal court recently held that a coverage action between former television producers and their insurers should be transferred from New York to California because the events involved in the underlying action occurred and a majority of the witnesses and evidence is located in California.
New York State Court: Insurer Waives Denial Grounds Not Specifically Asserted in its Notice of Disclaimer
By Troutman Pepper Locke on
A New York state appellate court recently ruled that an insurer waives its right to deny coverage based on any coverage ground not specifically asserted in its denial of coverage letter. …
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Court Ascribes Narrow Meaning to the Term “Claim” Where Not Defined in Claims-Made Policy
By Troutman Pepper Locke on
A New York appellate court recently held that a letter to an insured in which the claimants’ attorney stated that he was making an “inquiry into the facts before filing a pleading with the court” and expressed his position that his clients were deprived of tips and bonuses, did not constitute a claim under a claims-made policy.
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Fifth Circuit Rejects Excess Insurer’s Temporal and Subject Matter Stacking Arguments
By Troutman Pepper Locke on
The United States Court of Appeals for the Fifth Circuit recently rejected an excess insurer’s arguments in favor of temporal and subject matter stacking and affirmed summary judgment dismissing its subrogation claims against certain primary insurers.
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Florida Federal Court: Appraiser’s Finding That Insurer’s Calculation of Loss Was Too Low Is Insufficient to Support Statutory Bad Faith Claim
A Florida federal district court recently held that an appraiser’s finding that an insurer’s settlement of a property claim was too low cannot, by itself, sustain a cause of action for statutory bad faith.
UK: Further Support for Scottish Pleural Plaques Bill
By Troutman Pepper Locke on
On 26 June 2008 we reported that the Scottish Parliament had proposed a bill to reinstate compensation for individuals who have pleural plaques, thereby reversing in Scotland the effect of the House of Lord’s decision in Johnston v NEI International Combustion. The Justice Committee of the Scottish Parliament have now issued their report regarding the Bill. …
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Illinois Federal Court: “Related Wrongful Acts” Provision Applies Only To Limits Of Liability And Does Not Limit Duty To Defend
By Troutman Pepper Locke on
A federal district court in Illinois recently held that a “related wrongful acts” provision did not affect an insurer’s duty to defend even though the “wrongful acts” in question indisputedly “related” to wrongful acts that occurred prior to the policy’s retroactive date. …
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Massachusetts Court Finds That General Contractor’s Alleged Errors Fall Within “Professional Services” Exclusion In CGL Policy
By Troutman Pepper Locke on
A Massachusetts state court recently found that a professional services exclusion applied to claims against a contractor for improper “siting” of a house.