Monthly Archives: August 2012

Exclusion Applies to Accidental Death Policy

Death by Medical Malpractice The New Jersey Superior Court, Appellate Division, was called upon to resolve a dispute between Jeffrey Paul, decedent Richard Paul’s (“Paul”) son and New York Life Insurance Company (“NYLIC”) in Estate of Richard Paul, Deceased, By … Continue reading

Posted in Zalma on Insurance | Comments Off on Exclusion Applies to Accidental Death Policy

Tolling of a Statute of Limitations

Whenever Payment Made to Claimant Advise When Statute of Limitations Will Run The California Court of Appeal was called upon to resolve a dispute over whether a statute of limitations had been tolled because an insurer that paid for a … Continue reading

Posted in Zalma on Insurance | Comments Off on Tolling of a Statute of Limitations

INDISPUTABLE EVIDENCE NEEDED FOR “FAIRLY DEBATABLE DEFENSE

Get Evidence Before Denying a Claim The Supreme Court of Utah was asked to resolve whether a “fairly debatable” defense to a bad faith claim must be resolved by summary judgment in Chad Jones v. Farmers Insurance Exchange, 2012 UT … Continue reading

Posted in Zalma on Insurance | Comments Off on INDISPUTABLE EVIDENCE NEEDED FOR “FAIRLY DEBATABLE DEFENSE

“PERSONAL INJURY” COVERAGE IS BROAD

Invasion of Right of Private Occupancy of Land is Covered The Indiana Court of Appeals was called upon to resolve an insurance coverage for claims arising from the abandonment of foundry sand from the Indianapolis foundry of Daimler Chrysler Corporation, … Continue reading

Posted in Zalma on Insurance | Comments Off on “PERSONAL INJURY” COVERAGE IS BROAD

WHEN “SUDDEN” IS NOT

SUDDEN & ACCIDENTAL MAY JUST MEAN  “UNEXPECTED” The Supreme Court of New Mexico was required to interpret the meaning of a single word, “sudden,” within a pollution exclusion clause in a series of liability insurance policies barring coverage for certain … Continue reading

Posted in Zalma on Insurance | Comments Off on WHEN “SUDDEN” IS NOT

Comparative Fault Requires Setoff-with-Contribution When One Joint Tortfeasor Settles

Common Law Release Rule Is No More The California Supreme Court has been very busy dealing with insurance and tort law, allowing stacking of policies on continuing third party claims, limiting plaintiffs to actual charges for medical services rather than … Continue reading

Posted in Zalma on Insurance | 1 Comment

Insurer Must Control Defense in Good Faith

Counsel Appointed by Insurer Must Protect Insured’s Right to Coverage When an insurer appoints an attorney to defend its insured subject to a reservation of rights the attorney appointed owes a duty to represent the insured vigorously, must not become … Continue reading

Posted in Zalma on Insurance | Comments Off on Insurer Must Control Defense in Good Faith

Workers’ Compensation Is Not Always an Exclusive Remedy

Right to Augment Workers’ Comp Benefits Limited to Worker In California, where an employee is injured in the course and scope of his or her employment, workers’ compensation is generally the exclusive remedy of the employee and his or her … Continue reading

Posted in Zalma on Insurance | Comments Off on Workers’ Compensation Is Not Always an Exclusive Remedy

RIGHT TO JURY TRIAL IN DECLARATORY RELIEF ACTION

Failure to Fish or Cut Bait In Allen M. Entin v. the Superior Court of Los Angeles County, No. B239642 (Cal.App. Dist.2 08/20/2012) the insurer filed a declaratory relief action that was pending while the benefits of disability insurance policies … Continue reading

Posted in Zalma on Insurance | Comments Off on RIGHT TO JURY TRIAL IN DECLARATORY RELIEF ACTION

Waiver of Stacking Upheld

The Right to Stack UM Coverage Can Be Waived People who insure their cars in Pennsyvania have the right to stack coverages for uninsured motorist (“UM”) or Underinsured Mortorist (“UIM”) coverages if they insure more than one vehicle with their … Continue reading

Posted in Zalma on Insurance | Comments Off on Waiver of Stacking Upheld

“However Caused” Exclusion Applies

Exclude Result Rather Than Cause When insurers first began to insure people against the risk of loss of property they specified the risks of loss they would insure, such as “fire” or “windstorm”. To sell more policies insurers offered “all … Continue reading

Posted in Zalma on Insurance | 1 Comment

CONVICTION FOR INSURANCE FRAUD AND ARSON AFFIRMED

PUNISHMENT FOR ARSON MUST BE SEVERE Arson is the most serious form of insurance fraud because innocent people and firefighters die or are injured as a result of the crime. The punishment for this crime cannot, in my opinion, be … Continue reading

Posted in Zalma on Insurance | Comments Off on CONVICTION FOR INSURANCE FRAUD AND ARSON AFFIRMED

ARBITRATION DECISION CAN MAKE CONDOMINIUM DEVELOPERS MORE INSURABLE

Effective Underwriting Requires Review of CC&R’s Every insurer that insures developers of condominium projects in California for their liability for claims of construction defects should carefully review the decision of the California Supreme Court in Pinnacle Museum Tower v. Pinnacle … Continue reading

Posted in Zalma on Insurance | Comments Off on ARBITRATION DECISION CAN MAKE CONDOMINIUM DEVELOPERS MORE INSURABLE

Rejection of UM/UIM Coverage Upheld

NEED DOES NOT CREATE COVERAGE Herman Duke and Gayle Duke (the “Dukes”) appealed a summary judgment granted in favor of , Sentry Select Insurance Company (“Sentry”). The trial court found that uninsured motorist coverage had been validly rejected by the … Continue reading

Posted in Zalma on Insurance | Comments Off on Rejection of UM/UIM Coverage Upheld

Private Limitations of Action Enforced

PRUDENT INSURER WARNS INSURED OF TIME TO SUE Joseph D. Elias (Elias) sued his insurer, for breach of an insurance contract. The trial court granted summary judgment to defendant Farmers Insurance Exchange (Farmers) on the ground that the action was … Continue reading

Posted in Zalma on Insurance | Comments Off on Private Limitations of Action Enforced

INSURANCE FRAUD CONTINUES UNABATED

Zalma’s Insurance Fraud Letter August 15, 2012 Continuing with the sixteenth issue of the 16th Year of publication of Zalma’s Insurance Fraud Letter (ZIFL) reports in its August 15, 2012 issue that Alabama adds statutes to aid in its fight … Continue reading

Posted in Zalma on Insurance | Comments Off on INSURANCE FRAUD CONTINUES UNABATED

Excess Owes No Duty to Defend

Insurer v. Insurer — Both Lose, One Loses More Than Another When one insurer sues another trying to transfer the risk taken to the other both will probably lose because of the costs of defending or prosecuting the suit. In … Continue reading

Posted in Zalma on Insurance | Comments Off on Excess Owes No Duty to Defend

KISS A FROG AND ALL YOU GET IS AN ANGRY FROG

Clear Policy Language Must be Enforced When serious injuries and death result from an accident parties and their lawyers often grasp at any possibility to obtain insurance coverage from insurers that neither intended to nor agreed to provide protection for … Continue reading

Posted in Zalma on Insurance | Comments Off on KISS A FROG AND ALL YOU GET IS AN ANGRY FROG

California Allows Stacking of CGL

A CASE OF FIRST IMPRESSION AND IMPORTANCE The state of California is a financial basket case. It has been ordered by a federal court to clean up the pollution caused by the construction and use of the Stringfellow Acid Pits … Continue reading

Posted in Zalma on Insurance | Comments Off on California Allows Stacking of CGL

No Coverage If Not an Insured

AMBIGUITY CAN’T BE CREATED FROM WHOLE CLOTH The Illinois Court of Appeal was asked to resolve a dispute between an insurer and its insured over the meaning of an exclusion in Sandra Knezovich, Personal Representative of the v. Hallmark Insurance … Continue reading

Posted in Zalma on Insurance | Comments Off on No Coverage If Not an Insured

The Danger Of Withdrawing Defense

Breach Duty to Defend and Lose Right to Attack the Settlement Two insurance carriers that provided consecutive coverage to a mutual insured asked the Texas Court of Appeal whether Audubon Insurance Company (Audubon) should receive contribution and reimbursement from Great … Continue reading

Posted in Zalma on Insurance | Comments Off on The Danger Of Withdrawing Defense

CONDITIONS PRECEDENT CONTROL

No Right to Benefits for Failure to Fulfill Condition   On September 20, 2005, the plaintiff/appellant, Daniel Shaw (hereinafter “Shaw”), was involved in a one-vehicle car accident. On September 27, 2007, Shaw filed a lawsuit against Nationwide Insurance and Robert … Continue reading

Posted in Zalma on Insurance | Comments Off on CONDITIONS PRECEDENT CONTROL

The Danger of a Covenant Not to Execute

MALICIOUS LAWYER LOSES COVERAGE Lawyers who filed and maintained a maliciously prosecuted; when sued for malicious prosecution, the lawyers entered into a settlement with the injured party for a $4.5 million verdict that could only be executed against the lawyers’ … Continue reading

Posted in Zalma on Insurance | Comments Off on The Danger of a Covenant Not to Execute

Random Thoughts on Insurance

NEW E-BOOK RANDOM THOUGHTS ON INSURANCE A COLLECTION FROM BARRY ZALMA’S BLOG ZALMA ON INSURANCE Since 2010 Barry Zalma has been writing a blog post at least five days a week. This e-book is a collection of those posts that … Continue reading

Posted in Zalma on Insurance | Comments Off on Random Thoughts on Insurance

Deny Defense & Lose Right to Belatedly Control Defense

INSURER SHOULD NEVER DENY A DEFENSE UNLESS ABSOLUTELY CERTAIN NO POTENTIAL FOR COVERAGE The District Court, Northern District of California, granted a motion for summary judgment in favor of KB Home in part against the Travlers in Kaufman & Broad … Continue reading

Posted in Zalma on Insurance | 1 Comment

HE WHO SITS ON HIS RIGHTS LOSES THEM

Never Ignore the Statute of Limitations The Wisconsin Court of Appeal was called upon to resolve a dispute over the application of a statute of limitations in a suit against American Family Mutual Insurance Company, Gage Creighbaum, Sherry Lagios, and … Continue reading

Posted in Zalma on Insurance | Comments Off on HE WHO SITS ON HIS RIGHTS LOSES THEM

Slumlord Must Repay Insurer for Settlement Contribution

Insurers Should Never Allow Slumlord to Profit From Bad Acts In Axis Surplus Insurance Company v. Reinoso No. B228332 (2012) WL 2389324) an insurer, under a full reservation of rights, including the right to recover any costs of defense or … Continue reading

Posted in Zalma on Insurance | Comments Off on Slumlord Must Repay Insurer for Settlement Contribution

Interpleader Not a Defense To Negligence

When Stakeholder Causes Dispute It Can Still Be Sued For Negligence Not Related to Dispute The Ninth Circuit Court of Appeal was asked to determine whether the federal interpleader remedy shields a negligent stakeholder from tort liability for its creation … Continue reading

Posted in Zalma on Insurance | Comments Off on Interpleader Not a Defense To Negligence

Always Give Coverage Counsel All Facts

Insurer is Not Bound to Submerge its own Interest in Order that the Insured’s Interests May be Made Paramount Whenever an insurer retains coverage counsel it is essential that coverage counsel is provided the full text of the policy and … Continue reading

Posted in Zalma on Insurance | 4 Comments

Zalma’s Insurance Fraud Letter — August 1, 2012

Money Recovered From Fraud Perpetrators Should Stay With Fraud Fight Continuing with the fifteenth issue of the 16th Year of publication of Zalma’s Insurance Fraud Letter (ZIFL) reports in its August 1, 2012 that monies recovered from insurance fraud perpetrator … Continue reading

Posted in Zalma on Insurance | Comments Off on Zalma’s Insurance Fraud Letter — August 1, 2012