Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: insurance

No claim of bad faith or breach of contract against rental car company where insurance was declined — Missouri

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Clayborne v. Enterprise, Parker rented a car from Enterprise.  Parker declined insurance coverage and supplemental insurance when he rented the car.  Then he was in an accident and hit Clayborne.  Enterprise declined to defend the subsequent suit which Parker claimed was bad faith.  But summary judgment to Enterprise was affirmed.  Enterprise and ELCO (Enterprise’s… Continue Reading

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

Misrepresentations in insurance application let insurer off the hook for fatal building collapse — Pennsylvania

Posted in Contractual Liability
In Berkely Assurance Company vs Campbell, Campbell was hired to demolish a building in Philadelphia.  During the demolition, an unbraced wall fell onto an adjacent Salvation Army store killing and injuring employees and customers. Berkely issued a policy to Campbell, but claimed it was void because of misrepresentations in the application and because Campbell failed… Continue Reading

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

Construction defect is not an “occurrence” or “accident” that triggers covered “property damage” within the meaning of a CGL policy – 7th Circuit, Illinois

Posted in Contractual Liability, Duty to Defend
In  Allied Prop. & Cas. Ins. Co. v. Metro N. Condo. Ass’n., Allied’s policyholder insured improperly installed windows on Metro’s property. Metro sued the insured for breach of the implied warranty of habitability. Metro and the insured entered into a settlement agreement assigning Metro the right to the insured’s insurance proceeds. Allied sought a declaratory… Continue Reading

Insurance company has standing to enforce arbitration against claimant — 9th Circuit California

Posted in Contractual Liability, New Case
Allied Professionals Insurance Company, v. Anglesey, When Allied denied Dr. Anglesey coverage for a malpractice claim made by the Gutierrezes, the doctor and the claimants settled, with an agreement not to execute against Anglesey, and apparently, an assignment of Anglesey’s claims against Allied to the Gutierrezes.  Allied sued the doctor and claimants, seeking (1) declaratory… Continue Reading

No coverage under builders risk policy for damage to the existing structure — 10th Circuit Colorado

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Gerald H. Phipps, Inc. v. Travelers Property Casualty, the Tenth Circuit affirmed summary judgment to Travelers Property Casualty on a builders’ risk policy.  The policy covered the builder’s work on the property, not the property itself.  So, when water damaged the property while roof work was being performed by the policyholder, Phipps, there was… Continue Reading

Questions of reasonableness are for jury, not summary judgment — UM bad faith — Oklahoma law

Posted in Insurance Bad Faith
In Falcone v. Liberty Mutual, Falcone made an uninsured motorist claim (UM claim) for injuries arising out of an auto accident with an uninsured driver.  Falcone was a passenger in her mother’s car, and Liberty was the UM insurer.  Falcone was taken by ambulance to the OU Medical Center Emergency Room, and was then transferred… 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

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

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

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

Choice of law for bad faith claim follows tort law, most significant relationship — Oklahoma

Posted in Insurance Bad Faith
In Martin v. Gray, 2016 OK 114, Martin was injured in an Oklahoma accident by Gray.  Martin’s insurance  was purchased by her parents while they lived in Kansas. She was, however, a listed/rated driver in the policy. Before the collision, Insured’s parents notified the Kansas agent that she was moving to Oklahoma to live with… Continue Reading

Judgment against policyholder for fraudulent claims affirmed — 10th Circuit, Oklahoma

Posted in Contractual Liability
In Century Surety Co. v. Shayona Investment, Century paid claims submitted by its policyholder, Shayona, and then sued Shayona, arguing the claims were fraudulent.  At trial, the jury found in favor of Century, awarding it both the amount the company paid Shayona under the policy and the sum it spent investigating the claims.  The Tenth… 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

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

Appraisal, arbitration, and federal appellate jurisdiction 10th Circuit; Colorado

Posted in Contractual Liability
In KCOM v. Employers Mutual Casualty, KCOM had hail damage to its motel roof.  Employers disputed the amount of the claim. KCOM sought appraisal, and then sued Employers before the appraisal was complete.  When the appraisal was complete, Employers wanted it confirmed by the trial court. When the trial court did not confirm the appraisal,… Continue Reading

Insurer’s Delayed Loss Adjustment & Misleading Insured about Settlement May Constitute Bad Faith – 8th Circuit, Iowa

Posted in Contractual Liability, Insurance Bad Faith, New Case
Bruhn Farms Joint Venture v. Fireman’s Fund Ins. Co. involved a dispute over the adjusted value of hail-damaged crops. The insured notified the insurer of the hail damage. Over a month later, the insurer adjusted the loss. Additional inclement weather had further damaged the crops and all salvageable crops had been harvested. Still, the insurer… Continue Reading

Failure to Provide Expert Witness Report until Eve of Trial Warrants Exclusion – 8th Circuit, Minnesota

Posted in Insurance Bad Faith
In Amplatz v. Country Mut. Ins. Co., an insured sued her insurance company for property damage caused by hail, water and wind. The insurance company denied coverage of water damage to the interior because the water leaked inside due to the insured’s deferred maintenance. The insured obtained an expert witness report stating water leaked inside… Continue Reading