Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: ambiguity

Summary judgment to homeowner insurance company reversed on burst pipe claim — 10th Circuit, Utah

Posted in Contractual Liability, Insurance Bad Faith
In Wheeler v. Allstate Insurance Company, Wheeler insured his cabin with Allstate.  A friend stopped by the cabin in the spring and found a pipe had burst and there was water in the basement.  There was extensive damage.  It was determined that the pipe burst two months before discovery and was likely caused by a… Continue Reading

Criminal Acts exclusion did not apply to negligent conduct even if the conduct leads to a criminal conviction — Missouri

Posted in Contractual Liability, Insurance Bad Faith
In Pitt v. Leonberger, the Missouri Court of Appeals ruled that the criminal conduct exclusion did not apply. Leonberger, a school bus driver, struck and killed Pitts’ son.  The insurer, Missouri United School Insurance Council (MUSIC), accepted liability and even hired an attorney to represent Leonberger when a criminal charge of negligent homicide was filed against… Continue Reading

No Underinsured Motorist Coverage Where Tortfeasor Policy Limits Exceed Insured’s Policy Limits; Missouri (8th Circuit)

Posted in Contractual Liability, New Case
AMCO Ins. Co. v. Williams, arose from a fatal car crash. The insured’s estate sought underinsured (UIM) motorist coverage after recovering the tortfeasor’s policy limits. The claim was denied. The insured sought summary judgment establishing coverage. The insurer claimed there was no coverage because the tortfeasor’s vehicle was not underinsured. The insured said the policy… Continue Reading

No coverage for contaminated water claim at mobile home park, 8th Circuit, Missouri

Posted in Duty to Defend
In Williams v. Employers Mutual Casualty Co., the issue was insurance coverage for claims for contaminated drinking water at a mobile home park. There was no coverage for the claims because the insurance policies’ pollution exclusions excluded coverage for “‘[b]odily injury’ or ‘property damage’ arising out of the actual, alleged or threatened discharge, dispersal, seepage,… Continue Reading

Explosion Excluded from Coverage by Pollution Endorsement – 8th Circuit, North Dakota

Posted in Duty to Defend
Hiland Partners GP Holdings, L.L.C. v. Nat. Union Fire Ins. Co. of Pittsburgh, Pa. arose from an insurance coverage dispute over a processing facility condensate explosion. The insurer claimed the explosion was excluded per the policy’s pollutants endorsement. The endorsement defined pollutants as “any solid, liquid, gaseous, or thermal irritant or contaminant” and excluded coverage… Continue Reading

Misrepresentation on application voids policy, 8th Circuit, Arkansas

Posted in Contractual Liability
In Nationwide Property and Casualty v. Faircloth, Faircloth applied for auto insurance on line.  When asked for the “primary use” of the vehicle, Faircloth chose Work/School (commute to/from, errands).  After Faircloth had an accident, Nationwide learned that Faircloth used the vehicle for deliveries, putting 1200 miles a week on it.  Nationwide said Faircloth should have… Continue Reading

Third Party Has Standing to Claim Benefits –Missouri

Posted in Contractual Liability
In Blankenship v. Old Missouri Insurance Company, the Missouri Court of Appeals reversed summary judgment for the insurance company, and found that a third party beneficiary had standing to bring a direct action against the insurance company.  The plaintiff was a farm worker, claiming entitlement to medical payments (med pay) coverage and liability coverage under… Continue Reading

Computer fraud provision did not cover payment to fraudulent bank accounts, Fifth Circuit, Texas

Posted in Contractual Liability
In Apache Corp. v. Great American Insurance, the Fifth Circuit vacated summary judgment to the policyholder insured on a computer fraud provision.  Apache was hoodwinked into paying legitimate vendor invoices to criminal bank accounts as a result of scheme initiated by email.  Great American Insurance Company, Apache’s insurer, denied its claim for coverage of its… Continue Reading

Injury occurring during rodeo event subject to athletic participation exclusion — MD Fla.

Posted in Duty to Defend
In Volusia County Cattlemen’s Association v. Western World Insurance Company; Case No: 6:15-cv-1239 (MD Fla), Desiree Cicero was participating in a cash grab event at the Cattlemen’s rodeo.  The event involved grabbing cash off of bulls running around in the arena.  Cicero was hurt and sued the Association.  The Association sought a defense and coverage… Continue Reading

Misrepresentations in personal property valuation voids entire policy 8th Circuit, Missouri

Posted in Contractual Liability
In Neidenbach v. Amica Mutual Insurance Company, the personal property coverage in plaintiff’s  Neidenbach’s homeowner’s policy was void under the policy’s “Concealment of Fraud” provision because the plaintiffs intentionally misrepresented the value of their personal property in their proof of loss; the misrepresentation voided the entire policy, including the portions covering loss of their dwelling.… Continue Reading

Owned vehicle exclusion, underinsured motorist coverage, 8th Circuit, Missouri law

Posted in Contractual Liability, Vehicle
Walker v. Progressive Direct Ins. Co. Steve Walker died in a motorcycle accident. After his widow settled against the tortfeasor for policy limits of $25,000, she sought underinsured motorist coverage UIM under two Progressive Auto Policies insuring the Walkers’ six other cars. The trial court granted Progressive’s motion for summary judgment, concluding that the policies’… Continue Reading

TCPA exclusion applies to non-TCPA claims, such as conversion — ED Missouri, applying Illinois law

Posted in Duty to Defend
In Regent Insurance Co. v. Integrated Pain Management, 4:14-CV-1759 RLW, 2016 WL 5357408 (E.D. Mo. Sept. 23, 2016) the policyholder was sued for sending unsolicited faxes in violation of the TCPA — Telephone Consumer Protection Act. In addition to the statutory damages, the complaint said that by sending the faxes, the policyholder converted the plaintiffs’… Continue Reading

Employee dishonesty, non-cumulation provision, policy holder gets multiple years of coverage Oklahoma

Posted in Contractual Liability, New Case
In First United Methodist Church of Stillwater, Inc. v. Philadelphia Indemnity Insur. Co., 2016 OK CIV APP 59, First United’s finance manager embezzled nearly $200,000 between 2009 and 2012. First United gave notice to Philadelphia of the thefts in January 2013 that it discovered in December 2012. Philadelphia conducted an investigation and ultimately paid First United… Continue Reading

OK to limit family member UM coverage to family members who do not own autos — Missouri

Posted in New Case
In Taylor vs. Owners Insurance Company, Taylor wanted coverage from Owners Insurance under his mother’s policy.  But the policy only provided coverage to members of the insured’s household who do not own their own cars.  Taylor owned his own cars and thus was not entitled to coverage. The trial court’s summary judgment to Taylor was… Continue Reading

Wyoming Oil & Gas Insurance Policies Exempt from Anti-Indemnity Statute; 10th Circuit, Wyoming

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith, New Case
In Lexington Ins. Co. v. Precision Drilling Co., L.L.P., the insurer sued the insured after an accident on the insured’s oil rig. The insurance policy was purchased by the oil rig management company. The insurer claimed the policy violated the Wyoming Anti-Indemnity Statute because the policy was purchased by a third party and the statute… Continue Reading

Missouri under-insured motorist coverage did not apply where liability limits were higher than UIM limits 8th Circuit

Posted in Contractual Liability, Insurance Bad Faith, New Case
In Burger v. Allied Property and Cas. Ins. Co., Burger was injured in a car accident.  The other driver paid Burger the policy limits of $100,000 for damages, but Burger had additional damages so she made a claim against Allied for underinsured motorist coverage.  Summary judgment to Allied was affirmed.  The policy defines an “underinsured… Continue Reading

Underground water exclusion in homeowners policy unambiguous; 8th Circuit (Arkansas law)

Posted in Insurance Bad Faith, New Case
In Bull v. Nationwide Mutual Fire Insurance Company, Bull sued Nationwide when it failed to pay for damages caused by water that leaked from a buried pipe located beneath the garage-floor slab of Bull’s home. Summary judgment to Nationwide was affirmed on appeal.  Bull’s policy contained an exclusion for loss caused by “water … below… Continue Reading

No E & O coverage for suit where named insured was not named defendant (specific entity exclusion) (10th Cir. Colorado)

Posted in Contractual Liability, New Case
In P&S LLC v. National Union Fire Insurance Company, P&S sued Private Escapes, a luxury-travel company, and its CEO, Keith.  P&S had signed up with Private Escapes after being told by Keith its deal would be grandfathered in after a planned merger between Private Escapes and Ultimate Resorts.  When the resulting company, Ultimate Escapes, refused… Continue Reading

Cancellation notice is not cancellation — 10th Circuit, Oklahoma (unpublished)

Posted in Contractual Liability, New Case
In Self v. Travelers, the Self’s insured their son’s truck on May 5 for 6 months.  On June 25, the insurance company sent the Selfs a notice of cancellation, which said the policy was being cancelled because the Selfs did not respond to the insurance company’s request for an interview to verify the policy information. … Continue Reading
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