In James Allen Ins. Brokers v. First Financial Bank, 267 So.3d 759 (Miss. 2019), the Court held that a mortgagee was entitled to coverage under a binder notwithstanding the insured mortgagor's failure to pay the initial policy premium. In this case, the insurance...
Insurance Law
WHERE YOU FILED IS SIGNIFICANT FOR FLOOD INSURANCE RECOVERY
The 5th Circuit Court of Appeals in Ekhlassi v. National Lloyds Ins. Co., 926 F.3d 130 (5th Cir. 2019) found that a lawsuit brought against a flood insurer was untimely when it was not filed in federal court within one year. In this case, the 5th Circuit Court of...
CALIFORNIA COURT OF APPEALS REACHES OBVIOUS CONCLUSION IN AUTOMOBILE POLICY LIMITS
Insurance policies are typically issued with a split limit. First, the policy will state its "per person" limit, which is the most the policy will pay for bodily injury damages to one person. Then, the policy will state a "per accident" limit, which is the aggregate...
ADDITIONAL INSURED STATUS IS LIMITED BY RHODE ISLAND SUPREME COURT
In Bacon Construction Co., Inc. v. Arbella Protection Insurance Company, Inc., 208 A.3d 595 (R.I. 2019), the Rhode Island Supreme Court enforced the terms of an endorsement which limited additional insured status to liability events that were caused partially by the...
ADDITIONAL INSURED STATUS IS LIMITED BY RHODE ISLAND SUPREME COURT
In Bacon Construction Co., Inc. v. Arbella Protection Insurance Company, Inc., 208 A.3d 595 (R.I. 2019), the Rhode Island Supreme Court enforced the terms of an endorsement which limited additional insured status to liability events that were caused partially by the...
UNDER ALABAMA LAW, INSURANCE AGENTS AND BROKERS DO NOT OWE A DUTY TO THEIR CUSTOMER TO ADVISE REGARDING THE ADEQUACY OF THE CUSTOMER’S INSURANCE COVERAGE
In Somnus Mattress Corp. v. Hilson, No. 1170250, 2018 WL 6715777 (Ala. Dec. 21, 2018) the Court found that the insurance agent and broker in that case had no duty to advise the insured of the adequacy of its insurance coverage. The allegation that the agent made...
UNDER ILLINOIS LAW, SUIT AGAINST AGENT FOR NEGLIGENT FAILURE TO PROCURE COVERAGE BEGAN TO RUN WHEN THE INSURED RECEIVED THE INSURANCE POLICY
In a split decision, the Illinois Supreme Court in Am. Family Mut. Ins. Co. v. Krop, 2018 IL 122556, 120 N.E.3d 982, reh'g denied (Nov. 26, 2018) held that in a negligent failure to procure lawsuit against an insurance agent, the applicable statute of limitations...
SOUTH CAROLINA SUPREME COURT INVALIDATES PIP SETOFFS
In Cothran v. State Farm Mutual Auto Insurance Co., 2019 WL 3683591 (S.C. 8/2/19) the Colorado Supreme Court invalidated a PIP provision in State Farm's policy which attempted to coordinate its benefit with workers compensation benefits. The Court held that South...
THE COLORADO SUPREME COURT HOLDS THAT INSURANCE COMPANY SUBROGATION ACTIONS ARE NOT SUBJECT TO COLORADO’S FAIR DEBT COLLECTION PRACTICES ACT
In Ybarra v. Greenberg & Sada, P.C., 2018 CO 81, 429 P.3d 839, reh'g denied (Nov. 19, 2018), the high court rejected a claim that the lawyers hired by the insurance company to pursue a subrogation action violated Colorado's Fair Debt Collection Practices Act. The...
INSUREDS ARE REQUIRED TO READ THE INSURANCE POLICY UNDER ARKANSAS LAW
The 8th Circuit Court of Appeals in Hatcher v. MDOW Insurance Co., 903 F.3d 724 (8th Cir. 2018) interpreting Arkansas law held the insurance company which had provided its homeowner insured with multiple policy renewal letters advising the insured to review the...