Coverage & Claims

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The Fifth Circuit Court of Appeals recently affirmed a decision of the U.S. District Court for the Southern District of Texas holding that a jury’s finding of knowing misconduct on the part of an insured does not preclude the finding of a covered “accident” resulting from such misconduct. 

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Read More Fifth Circuit Affirms Coverage for Property Damage Caused by Knowing Misconduct

The Chilean legislature was recently presented with a draft law designed to modernize the insurance and reinsurance provisions contained within Chile’s Code of Commerce.  If enacted, the legislation would replace Chile’s current laws concerning private insurance and reinsurance in their entirety. 

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Read More Chile Considers Legislation To Modernize Its Insurance and Reinsurance Laws

AXA has commenced legal proceedings against 78 law firms in England and Wales in order to recover losses associated with after-the-event (ATE) insurance policies taken out on claims it believes were not properly vetted. The sums sought are stated to be in the region of £60million. 

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Read More UK: AXA Commences Legal Proceedings to Recover ATE Losses

The California Court of Appeals recently affirmed a decision granting State Farm’s special motion to strike a claim in a case involving alleged misrepresentations during a personal injury case.  Click here to view the unpublished decision.

Appellants were tenants in a home belonging to Jeane and Edward Dunne (the

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Read More California Court of Appeals Affirms Decision for State Farm in Misrepresentation Suit

Maldonado v. First Liberty Ins. Corp., 546 F. Supp. 2d 1347 (S.D. Fla. 2008), arose from an auto accident in which the insured’s wife collided with the father of three small children, causing his death  As soon as it became aware of the accident, the insurer notified the insured that “the nature and extent of the damages and injuries being claimed suggests there is a potential exposure in excess of your policy limits. . . .” 

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Read More Bad Faith – Florida District Court Grants Summary Judgment in Favor of Insurer

On July 23, 2008, New York Governor David Paterson signed into law what has been referred to as the “late notice bill” (Senate Bill 8610 and Assembly Bill 11541).  The new law states that it takes effect 180 days after the date it is signed into law, and applies to policies issued after that 180-day period.  Accordingly, the new law takes effect on January 19, 2009. 

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Read More BREAKING NEWS: New York Governor Patterson Signs Law Reversing New York’s “No-Prejudice” Precedent, Requiring That an Insurer Has Sustained “Material Prejudice” Before Disclaiming Coverage on Late Notice Grounds

About a year ago, www.insurereinsure.com reported on the New York Appellate Division’s ruling in Allstate Ins. Co. v. American Home Assurance Co., No. 9335 (App. Div., 1st Dept. June 12, 2007), which reversed a lower court’s decision and held that Allstate was not required to follow the fortunes of American Home’s loss allocation on a single occurrence “per site” basis, finding that American Home manipulated its allocation to exceed the facultative reinsurance contract’s $1 million per-occurrence deductible in order to maximize its reinsurance recoveries. 

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Read More Court of Appeals Denies Cedent’s Motion to Appeal Ruling That Reinsurer Not Obligated to Follow Settlement Allocation

The Supreme Court of Connecticut recently affirmed a 2006 Superior Court decision that a liability insurer for a subcontractor was required to provide a defense for the general contractor in connection with a lawsuit alleging workplace injuries to employees of the subcontractor allegedly injured on the job. …
Read More Connecticut Supreme Court Upholds Decision Requiring Insurer for Subcontractor to Defend Contractor

The federal district court for the Eastern District of Pennsylvania recently denied an insurer’s request to bifurcate its insured’s bad faith claim from the breach of duty to defend claim for purposes of discovery and trial. …
Read More Federal Court Denied Insurer’s Request to Bifurcate Insured’s Bad Faith Claim from Breach of Contract Claims