Reinsurance Law Blog

Reinsurance Law Blog

Tag Archives: reservation of rights

Homeowners policy did not cover privacy, negligence claims where there was no physical injury to person or property — 10th Circuit, Oklahoma law

Posted in Contractual Liability, Duty to Defend
In State Farm Fire v. Dawson, Dawson was sued for negligence and privacy violations after receiving inappropriate photos of an under aged student. Dawson wanted State Farm to pay his defense and any judgment.  But State Farm claimed there was no physical injury to tangible property and no bodily injury such that the policy did… Continue Reading

Insurer equitably estopped from denying coverage based on change of position on interrelated acts — 10th Circuit — NY law

Posted in Contractual Liability, Duty to Defend
In Brecek & Young Advisors v. Lloyds London, BYA told Lloyds about some claims (Wahl Arbitration) that fell within the 2006-2007 policy issued by Lloyds to BYA.  Lloyds first claimed that the Wahl Arbitration was related to another claim under a previous policy issued by Fireman’s Fund. Under the policy,“Interrelated Wrongful Acts” are “considered 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

Claim file discoverable on issue of duty to defend — WD Okla applying Illinois law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith
In Federal Insurance Company v. Indeck Power Equipment Company, CIV-15-491-D, 2016 WL 5173402 (W.D. Okla. Sept. 21, 2016) the trial court granted a motion to compel discovery of a claim file.  The case had been bifurcated for discovery between duty to defend and bad faith. According to Federal, information regarding the claim file relates to… Continue Reading

Reinsurance arbitration clause invalidated; Missouri law

Posted in Contractual Liability, Duty to Defend, Insurance Bad Faith, New Law
In Leonberger v. Missouri United School Insurance Council, a bus driver accidentally killed a student after he left the bus.  There was a lawsuit, and the criminal acts exclusion was raised after the driver pled guilty to the charge of second-degree involuntary manslaughter. After the student’s parents got an $11.5M judgment, the driver sued the… 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

Failure to defend, reserve rights, results in waiver and coverage, 7th Circuit, Illinois

Posted in New Case
“This case provides a warning for insurance companies who refuse to defend their insureds.” So begins the opinion in National American Insurance v. Artisan and Truckers Casualty.  Artisan insured Barengolts, a tractor trailer driver, who rear ended the Bernals.  The Bernals sued, and alleged various inconsistent claims regarding any agency relationship between and among the… Continue Reading

Haunted Houses and Escape Clauses — Oklahoma Law

Posted in New Case
An escape clause, like any part of an insurance policy which takes away coverage, must be clear. If it is ambiguous, then coverage goes to the insured. Here, the escape clause was in the "who is an insured" part of the policy, not the in the "other insurance" part of the policy. And, the escape clause was not raised in the reservation of rights letter given to the insured.… Continue Reading
Lexblog