Topic: Extra-Contractual Liability

California Wildfire Decisions May Provide a Guide for Future Disputes

In the wake of the wildfires that devastated Southern California in October of last year, more than 22,000 insurance claims were filed, according to the Insurance Information Network of California.  While the bulk of those claims may be for additional living expenses due to the mass evacuation of San Diego County, at least 1,500 homes were destroyed by the fires. 

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Ohio Court of Appeals: Consideration of Extrinsic Evidence is Proper in Determining Meaning of Policy Wording As to Aggregate Limits Where Portions of the Policy at Issue are Missing

The Ohio state Court of Appeals recently determined that where portions of insurance policies at the center of a dispute were missing, the lower court’s consideration of extrinsic evidence in determining the meaning behind ambiguous policy wording was proper. 

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

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

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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Louisiana AG Sues More Than One Hundred Insurance Companies Over Katrina-Related Damages

On August 23, 2007, Louisiana Attorney General, Charles C. Foti, Jr. filed a lawsuit accusing over one hundred insurance companies of improperly denying Katrina related damages.  The action was brought on behalf of homeowners who are eligible to receive funds through the Road Home Program (“Program”). 

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