From the category archives:

Policy Interpretation

Ever since the seminal California Supreme Court decision in Montrose Chemical Corporation v. Admiral Ins. Co., 10 Cal. 4th 645 (1995), insurers have sought ways to avoid or discredit its “progressive damage-continuous trigger.” In its June 3, 2010 opinion (certified for publication on June 28) in Pennsylvania General Ins. Co. v. American Safety Indemnity Co. (No. D054522), [...]

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In Clarendon America Ins. Co. v. North American Capacity Ins. Co., Case No. E048176 (Fourth Appellate District, Div. Two, July 7, 2010), the Court of Appeal reversed a trial court entry of summary judgment in favor of defendant insurer North American Capacity (NAC) concerning the application of the policy’s self-insured retention (“SIR”) clause and the [...]

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In World Harvest Church, Inc. v. GuideOne Mut. Ins. Co., S10Q341 (Ga. May 3, 2010), the Georgia Supreme Court held that an insurer waives its right to deny defense or indemnity obligations if it fails to timely reserve rights and that the policyholder need not show prejudice for that rule to apply.

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In dealing a blow to the insurance industry, the California Supreme Court, in Minkler v. Safeco Ins. Co., recently held that the existence of a “separate insurance” clause in a homeowners’ policy precluded the insurer from asserting the policy’s intentional acts exclusion to deny coverage for the mother (the named insured) based on the alleged intentional [...]

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In a recent New Jersey appellate decision entitled Somerset Med. Ctr. v. Exec. Risk Indem., Inc., 2010 N.J. Super. Unpub. LEXIS 605, A-6214-08T2 (App.Div. Mar. 22, 2010), the court was faced with the question of whether a bodily injury exclusion in Somerset Medical Center’s directors and officers liability insurance policy excluded coverage for the negligent hiring and supervision of a [...]

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Although beer pong has made a number of curious contributions to American jurisprudence (see, e.g., University of Kansas v. Sinks, 644 F.Supp. 2d 1287 (D.Kan. 2008), involving trademark issues over the sale of Kansas Co-Ed Naked Beer Pong t shirts; Crusselle v. State, 2010 Ga. App. 375 (Ga. Ct. App. 2010), in which beer pong [...]

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In Lagstein v. Certain Underwriters at Lloyd’s, London, __ F.3d __ (9th Cir. June 10, 2010), the Ninth Circuit ruled that a district court had erred when it vacated a $6 million arbitration award against Lloyd’s under a disability policy.  In doing so, the Ninth Circuit reaffirmed the extreme deference to be shown arbitration awards [...]

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When policyholders are faced with litigation and discovery requests in that litigation, it is common for disputes as to the privileged nature of various communications to arise. Often, those disputes focus on an underlying plaintiff’s efforts to discover communications between the policyholder or its insurer(s) on matters of interest to the plaintiff and the development [...]

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Policyholders should keep in mind that the rules have changed in New York regarding late notice issues over the past few years.  In the Summer of 2008, the New York Legislature passed Section 3420(a)(5) of the New York Insurance Law codifying the “notice prejudice” rule.  The statute represented the Legislature’s rejection of the New York [...]

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With economic conditions nation-wide remaining bleak, and resulting corporate defaults and bankruptcy filings more likely, corporate directors and officers need to be sensitive about the protections available to them under both corporate indemnification agreements and comprehensive executive liability insurance purchased by their companies. In a setting where the company has sought bankruptcy protection, battles often [...]

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