Steven Plitt, Expert Witness Steven Plitt, Expert Witness
Insurance Bad Faith Claim Handling Expert Serving Clients Nationwide

July 2017 Archives

MAINE SUPREME COURT WEIGHS IN ON APROTIONING DAMAGES

The Maine Supreme Court in Harlor v. Amica Mutual Ins. Co., 2016 WL 6518589 (ME November 3, 2016) held that when an insurance company refuses to defend its insured on a mixed complaint containing allegations of both potentially covered and uncovered claims the insurer would be liable only for that portion of the settlement between its insured and the claimants representing payment for covered claims.

INSURANCE COMPANY RELIANCE UPON IME REPORT TO SUPPORT RULE 12 B6 MOTION TO DISMISS IN BAD FAITH CASE DID NOT REQUIRE DISMISSAL

The South Dakota Supreme Court in Mordhorst v. Dakota Truck Underwriters and Risk Administrative Services 886 N.W.2d 322 (S.D 2016) recently found that a rule 12-B6 motion to dismiss was not appropriate in a worker's compensation bad faith case notwithstanding the insurer's reliance upon an IME report finding that the injured employee was not injured.

INSURANCE SUBBROKER HELD TO NOT OWE DUTY TO WARN OF AN INSURANCE COMPANY FRAUD DURING THE PLACEMENT OF INSURANCE

Under Illinois statutory and common law an insurance broker owes a duty only to the named insured who has purchased insurance from the broker. Recently, the question arose under Illinois law regarding whether a sub broker, who played an administrative role in the placement of a large and complex risk involving a chain of brokers and subcontractors, but did not place any insurance on the behalf of the named insured or received commissions from the placement owed any type of duty to warn the named insured of potential "red flags" suggesting that the insurance company under which the program was placed was untrustworthy and that its polices issued might be worthless.

INDIANA COURT OF APPEALS HOLDS THAT POLICY SIR EXHAUSTION REQUIREMENT APPLIES TO ADDITIONAL INSURED AND NOT JUST THE NAMED INSURED

The Indiana Court of Appeals in Walsh Construction Co. v. Zurich American Insurance Co. 2017 WL 1151033 (IN Ct App March 28th 2017) acknowledged that under Indiana law in situations that arise between the insurer and the named insured, the insurer's responsibility is to defend and indemnify the named insured only after the SIR has been satisfied and exhausted. However, the question of whether a SIR endorsement applied only to the insurers relationship to the named insured or whether it also applied to an additional insured was resolved in the Walsh case as a question of first impression.

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