Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: delay

No bad faith for delay in appraisal where there were coverage issues — 10th Cir Oklahoma

Posted in Insurance Bad Faith
This is the second case involving Hayes Family Trust v. State Farm Fire & Casualty.  The first case, involving the appraisal process, is discussed here.  In this case, the policyholder claimed that State Farm acted in bad faith when it delayed the appraisal process because of coverage issues and when it failed to adequately investigate… Continue Reading

Notice / Prejudice rule applied to claims made policy where notice was given within the date certain requirement — Federal Court, Colorado

Posted in Contractual Liability
In Childrens Hospital v. Lexington, Childrens (CHC) was sued for professional negligence.  It failed to provide notice to its insurer, Lexington, “as soon as practicable”, but gave notice within the “date certain” notice requirement of the claims-made policy.  As a result, the court determined it could use the notice prejudice rule to determine if the… Continue Reading

Failure to disclose claim against insurance company in bankruptcy petition fatal — judicial estoppel — 10th Circuit, Colorado

Posted in Insurance Bad Faith, New Case
In Hermann v. Hartford Casualty Insurance, Hermann claimed Hartford unreasonably denied and delayed payment for his workers’ compensation claim.  Hartford moved for summary judgment, arguing that Hermann’s action should be barred under the doctrine of judicial estoppel because Hermann did not disclose his claim against Hartford in his bankruptcy petition. The judgment in favor of… Continue Reading

Whether the insurer’s investigation of a claim was reasonable was a question of fact precluding summary judgment 10th Circuit, Colorado

Posted in Insurance Bad Faith
In Peden v. State Farm Mutual Auto Ins Co., the Tenth Circuit reversed a summary judgment in favor of State Farm on a uninsured / underinsured motorist claim.  State Farm had both the liability coverage and the UM / UIM coverage.  State Farm paid $240,000 on the liability coverage, and after suit was filed, paid… Continue Reading

7th Circuit affirms order requiring payment of life insurance benefits to a stranger with no insurable interest — Wisconsin law

Posted in Contractual Liability, Insurance Bad Faith
In U.S. Bank National Association v. Sun Life Assurance Company, (opinion by Judge Posner)Sun Life issued a $6M life policy on Margolin in 2007.  In 2011, US Bank bought the policy and kept up the premiums.  In 2014, Margolin died.  Sun said it was looking into whether it had to pay the policy and US… Continue Reading

$2M+ verdict upheld for failure to pay uninsured motorist benefits – 10th Circuit, Colorado

Posted in Insurance Bad Faith, New Case
In Etherton v. Owners Insurance Company, Etherton was hurt in a car wreck and had 3 back surgeries.  He settled with the other driver for $250,000 and wanted $750,000 from his uninsured / underinsured motorist carrier — the remainder of his $1M policy limit. The UM carrier (Owners) offered $150,000, because it did not believe… Continue Reading

Policyholder knew defense was undertaken under reservation of rights, 8th Cir

Posted in New Case
In National Surety Corporation v. Dustex Corporation, the issue was whether the insurance company properly reserved its rights to deny coverage to its policyholder /  insured, Dustex. The insurance company had reserved its rights as to the declaratory judgment action, but had not specifically reserved its rights as to the arbitration proceeding. The trial court… Continue Reading

Late notice, no prejudice, and ambiguous policy as to who is an insured, CGL policy 8th Circuit, Iowa law

Posted in Contractual Liability, Duty to Defend, New Case
In Michigan Millers Mutual Ins. v. Asoyia, Inc., Asoyia had a Commercial General Liability policy (CGL) with Michigan Millers. Asoyia produces soybean oil. One of Asoyia’s customers, Sunnyside Country Club, had a fire it attributed to Asoyia’s soybean oil, which spontaneously combusted while on rags at Sunnyside’s laundry. Michigan Millers claimed it had no duty… Continue Reading

No bad faith where delay in payment was requested by insured Oklahoma law

Posted in Insurance Bad Faith
There can be no claim for breach of contract or bad faith with regard to delay in payment where the delay was requested by the insured. Similarly, there can be no claim for interest payments where the delay in payment was requested by the insured. There can be no claim for bad faith investigation without a showing of what additional investigation would have shown.… Continue Reading

Furnished Employee Clause Ambiguous — Missouri Case

Posted in New Case
Furnished Employee Clause Ambiguous Business automobile liability policy excluded employees, which included "leased workers," which excluded "temporary workers," defined as persons "furnished" to employer to substitute for employee by third person. Whether that third person must be in the profession of supplying temporary workers or not is ambiguous, so coverage is ambiguous, and is construed against insurer.… Continue Reading