Monthly Archives: January 2013

Contract Terms Must Be Honored

  Insurance Proceeds to Owner of Crashed Airplane McCraw Materials, LLC, Mayfield McCraw, and Brenda McCraw (collectively “McCraw”), appealed the trial court’s entry of a Partial Summary Judgment that awarded DivLend Equipment Leasing, LLC (“DivLend”), a $403,750 insurance payment and … Continue reading

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Life Insurance Investment Fraud Fails

Long Sentence Affirmed Christian M. Allmendinger appealed his conviction and sentence for several crimes relating to an investment scheme that resulted in nearly $100 million dollars in losses for investors. In United States of America v. Christian M. Allmendinger, No. … Continue reading

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Mental Gymnastics Not Allowed to Find Ambiguity

Rhode Island Refuses to Stretch the Imagination to Read Ambiguity Where None Exists The Supreme Court if Rhode Island was asked to resolve a dispute between Jessica Ahlquist (Ahlquist or defendant) and her insurer Allstate Insurance Company (Allstate or plaintiff). … Continue reading

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Failure to Appear For EUO — Prejudice Required

Prejudice Requirement – An Invitation to Commit Fraud As a justice of the California Supreme Court once said: “The problem is not so much the theory of the bad faith cases, as its application. It seems to me that attorneys … Continue reading

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Statute Trumps Contract

No Negligence – No Coverage The Minnesota Supreme Court was asked to determine whether Appellant L.H. Bolduc Company, Inc. (“Bolduc”) is obligated under an insurance policy and an indemnification provision in a construction contract to reimburse respondent Engineering and Construction … Continue reading

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Insurance is Not A Government Benefit

Proof Of Fraud Needed to Rescind Insurance in South Carolina Insurance is a contract of utmost good faith. Every insurer insurance company is entitled to determine for itself what risks it will accept, and therefore to know all facts relative … Continue reading

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Clear and Unambiguous Exclusion Must be Enforced

Insurer Meets Burden of Proof The Washington Court of Appeal was asked to resolve an insurance coverage dispute that arose from a lawsuit that alleged that the insureds were liable for injuries caused by the unlawful transmission of text messages … Continue reading

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Non-Trucking Use Coverage

Limited Coverage for Trucker Enforced The Wisconsin Court of Appeal was asked to resolve an insurance coverage dispute arising out of a multi-vehicle accident that took place on February 27, 2009 in Brian Casey v. Ronald Smith, John Zeverino, Taylor … Continue reading

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Copyright Not Given Up by Performance

Happy Birthday Martin Luther King, Jr. When I was a 21-year-old young man I was moved by the “I Have a Dream” speech as were almost every person in the United States. I can only wish more people today agreed … Continue reading

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Another Brilliant and Short Opinion From New York

Fraud in Inducement Voids Contract The New York Supreme and/or Appellate Courts Appellate Division, First Department in an extremely brief and clear headed decision found in MBIA Insurance Corporation v. Credit Suisse Securities (Usa), LLC, et al, No. 9003 603751/09 … Continue reading

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Tri-Partite Relationship Bars Discovery of Privileged Communications

Insurer is Also Client of Lawyer Appointed by it to Litigate For Insured In Bank of America, N.A., et al v. the Superior Court of Orange County, No. G046829 (Cal.App. Dist.4 01/15/2013) the California Court of Appeal was asked to … Continue reading

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Collateral Estoppel Establishes Damages

A Clairvoyant Court The Connecticut Court of Appeals, defying Einstein’s theory of relativity, issued its opinion dated January 22, 2013 on January 17, 2013. In Roberto Marques v. Allstate, No. (AC 34169) (Conn.App. 01/22/2013) Marques appealed from the summary judgment … Continue reading

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What is Physical Evidence of Loss?

Duty of Insurer to Prove Exclusion Applies Burglary and theft are usually easy to prove: there is a broken window or door, full shelves are empty, cases are broken, debris is left by the burglars, or there are holes drilled … Continue reading

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Go Directly to Jail – Fraud Fails

Zalma’s Insurance Fraud Letter  January 15, 2013 Continuing with the second issue of the 17th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma reports in the January 15, 2013 issue reports on how a hidden – in … Continue reading

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One Event – One Occurrence

Multiple Injuries Do Not Create Multiple Occurrences Insurance companies, like everyone else, hate to be sued. They have no compunction, however, to sue another insurance company to avoid or limit their exposure to a serious incident. When 13 people died … Continue reading

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Adjuster’s License Revoked for Fraud

 No License for Fraudster Michael Bresette sought relief from a final order of the Rhode Island Department of Business Regulation that permanently revoked his insurance claim adjuster’s license in Michael Bresette v. State of Rhode Island and Providence Plantations Department … Continue reading

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Care Needed When Dealing With Public Adjuster

Cancel P.A. Contract At Your Own Risk Public adjusters are often necessary when dealing with a major claim because they have the time and talent necessary to properly present a claim to an insurer on behalf of the insured. Most … Continue reading

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Never Give Up Good Tort Claim for Poor Bad Faith Claim

No Coverage – No Bad Faith Litigants faced with a defendant whose insurer refuses to defend or indemnify will invariably seek a stipulated judgment from the defendant and assignment of its claim against the insurer. The reason being the plaintiff … Continue reading

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Absolute Immunity

Insurance Criminal May Not Sue State Officers States are called upon to enforce sanctions against insurance agents and brokers who violate the law and defraud the public. In doing so they act as both police agencies and administrative agencies dealing … Continue reading

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DUTY TO DEFEND POTENTIAL ADVERTISING INJURY

USE OF ADVERTISING IDEA The Wisconsin Court of Appeal was asked to resolve a dispute regarding an insurance company’s duty to defend under a commercial general liability (CGL) policy against allegations of advertising injury based on use of another’s “advertising … Continue reading

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If You Can Work You Are Not Totally Disabled

Test Is Abuse of Discretion A trial court granted judgment to Connecticut General after concluding that it had not abused its discretion in terminating the disability benefits owed to Dennis Siegel.  In Dennis Siegel v. Connecticut General Life Insurance Company; … Continue reading

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Private Limitation of Action

Rights Not Exercised Promptly Are Lost The Ohio Court of Appeal was asked by Geraldine Offill (Offill) to reverse a judgment on the pleadings rendered against her on her complaint, and in favor of State Farm Fire & Casualty Company … Continue reading

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Assumtion Of Risk — A Broad Defense

The Bumper Car Rule I was personally almost strangled while riding on a bumper car because I put on the seat belt incorrectly and my then-teen-aged son was merciless as he drove his bumper car. Regardless, if I was injured … Continue reading

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“Public Policy” Can Rewrite an Insurance Policy

Bad Facts Make Bad Law It has been axiomatic that an insurance company is entitled to determine for itself what risks it will accept and that it has the unquestioned right to select those whom it will insure and to … Continue reading

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Insurance Fraud Continues Into New Year

Continuing with the first issue of the 17th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma reports in the January 1, 2013 reports on how an incompetent arsonist obtained nothing from the effort to make money from … Continue reading

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