Louisiana has recognized a pro rata allocation method for determining indemnification in long latency exposures. However, the Louisiana courts have not resolved the issue of whether defense costs should also be allocated in those type of cases. The Louisiana Supreme...
Year: 2017
Court Finds that an Earth Movement Exclusion Included Landslides
In Parker v. Safeco Insurance Co. of America, 2016 WL 3911544 (Mont. July 19, 2016) the issue was whether damage to a vacation cabin from a large bounder that fell down a hillside and into the cabin structure was covered under the Safeco policy. Safeco's policy...
What’s in a Label? Coverage for advertising injury?
The 2nd Circuit recently found that the sale of counterfeit branded goods was not covered as advertising injury under a commercial general liability policy. In USF&G v. Fendi Adele S.R.L., 823 F.3d 146 (2nd Cir. 2016), applying New York law, upheld the district...
Indiana Supreme Court Finds That UIM Suit Limitation Clause Was Ambiguous
In State Farm Mutual Auto. Ins. Co. v. Jakubowicz, 56 N.E.3d 617 (Ind. 2016) the Supreme Court of Indiana struck down State Farm's suit limitation clause in its UIM policy which imposed a three-year deadline for pursuing UIM benefits because it conflicted with the...
The 11th Circuit Court Of Appeals, Interpreting Georgia Law, Recently Enforced A UIM Excess Policy Exhaustion Requirement In Disallowing A UIM Claim
The 11th Circuit held in Coker v. American Guarantee and Liability Insurance Co., 825 F.3d 1287 (11th Cir. 2016), interpreting Georgia law, that Georgia's UIM statute did not transform excess UIM policies into primary UIM policies.The court found that Georgia's...
Wisconsin Supreme Court Weighs In On The “Made Whole” Doctrine In Subrogation Cases
The Wisconsin Supreme Court in Dufour v. Progressive Classic Insurance Co., 881 N.W.2d 678 (Wis. 2016) held that insurance companies may retain funds obtained as subrogation for payments that the insurer had previously made, even though the insured may not have been...
Excess Other Insurance Clause Struck Down By 5th Circuit Court Of Appeals
The U.S. Court of Appeals for the 5th Circuit recently held, interpreting Mississippi law, that a policy's excess other insurance clause in a policy issued to an alumni association was mutually repugnant with the other insurance clause in the University's policy.In...
Utah Court Of Appeals Rules That Homeowner Policy Did Not Cover Water Infiltration Caused By Storm When The Water Entered Into The Property Through A Partially Completed Roof
In Poulsen v. Farmers Insurance Exchange, 26 UT App. 170 (2016) the court found that Farmers' homeowners policy did not provide coverage for water intrusion from a wind storm when the water entered into the house through a partially completed roof. The roof contained...
Covenant Judgment Settlements In Washington Do Not Automatically Constitute A Waiver Of Attorney-Client Privilege And Work Product Protection When The Insured’s Claims For Bad Faith Against The Insurer Are Assigned To The Adverse Party
In Steel v. Philadelphia Indemnity Co., 381 P.3d 111 (2016), a daycare center employee was convicted of child rape and child molestation while working at a daycare center. The parents brought a negligence action against the center. The daycare center had $1 million in...
Timely Offering Policy Limits Does Not Immunize Insurer From Bad Faith Exposure
The California Supreme Court in Barickman v. Mercury Casualty Co., 2 Cal. App. 5th 508 (2nd Dist. 2016) held that the insurance carrier was liable for bad faith failure to settle, notwithstanding the fact that the carrier offered its policy limits to the claimants in...