Coverage & Claims

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In Murphy Oil USA Inc., v. SR International Business Insurance Co. Ltd., et al., the insured sought coverage from its various excess insurers for losses resulting from an oil spill caused by Hurricane Katrina.  No. 07-1071, 2007 U.S. Dist. LEXIS 69732 (W.D. Ark., Sept. 20, 2007).  Murphy’s excess insurers in turn served a notice of their intent to arbitrate any coverage dispute in London, pursuant to an arbitration clause contained in each insurer’s policy. …
Read More Arkansas Federal Court Finds That the New York Convention Preempts the McCarran-Ferguson Act

On Tuesday, Washington voters approved a measure to allow plaintiffs to receive treble damages from claims alleging bad faith claims handling by an insurer.   This is a marked increase from the current law that limits recoveries resulting from bad faith of an insurer to the actual damages incurred. 

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Read More Washington Voters Approve Measure to Allow Treble Damages in Insurer Bad Faith Actions

In Zurich American Ins. Co. v. The Superior Court of Los Angeles County, et al., No. B194793 (Cal. App., 2nd Dist., Oct. 11, 2007), an appellate panel reversed a lower court’s order and held that the attorney-client privilege extends to communications between an insurer’s employees regarding legal advice and strategy, even if such communications do not contain advice directly from counsel, when disclosure is reasonably necessary for the transmission of that information or to further the purpose of the legal consultation. …
Read More California Appellate Court Rejects Narrow Definition of Attorney-Client Privilege With Respect to Documents Contained in Insurer’s Claims Files

In Transportation Insurance Company v. The Regency Roofing Companies, Inc., C.A. No. 05-80830 (S.D. Fla. Oct. 2, 2007), the United States District Court for the Southern District of Florida recently ruled that the “known loss” exclusion in a commercial general liability (“CGL”) policy did not preclude coverage for mold related injuries that arose from the insured’s faulty roof installation and repair. 

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Read More Federal District Court Holds “Known Loss” Exclusion Does Not Apply to Mold Damage Resulting From Faulty Roof Repair

In Encarnacion v. 20th Century Ins. Co., Nos. B179825 & 182737 (Cal. Ct. App. Sept. 27, 2007), an unreported decision, a California appeals court recently affirmed a multimillion-dollar verdict against an insurer that failed to settle the underlying suit for the $100,000 policy limit. 

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Read More California Court Affirms Multimillion-Dollar Verdict Against Insurer That Failed to Settle Underlying Case for $100,000 Policy Limit

In Garcia v. Federal Ins. Co., No. SC06-2524 (Fla. Oct. 25, 2007), on two questions certified by the Eleventh Circuit, the Florida Supreme Court recently held that an employer’s insurance policy was not ambiguous and that it covered an employee, as an additional insured, only when the employee was vicariously liable for her employer’s conduct. 

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Read More Coverage for Additional Insured Limited to Vicarious Liability

The New York Court of Appeals recently rejected an insured’s argument that the placement of a “Relation of Earnings to Insurance” (REI) Clause within the “General Provisions” of a disability insurance policy rendered the clause deceptive and unenforceable. 

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Read More New York’s Highest Court: “Relations of Earnings to Insurance” Clause Located In “General Provisions” Section of Disability Insurance Policy Is Enforceable