Monthly Archives: June 2013

To Stack or Not Stack

Stacking Excluded Properly Insurance is a commodity purchased by people or entities to transfer the risk of certain described losses. One of those potential losses is being injured by an uninsured motorist (UM) or an underinsured motorist (UIM). When purchasing … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on To Stack or Not Stack

No Contract Until Offer Accepted

Application Is Only an Offer to Buy Insurance Insurance is a contract. Before there is a contract it is axiomatic that there must be an offer, the offer must be accepted and consideration – a premium – must be paid. … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on No Contract Until Offer Accepted

No EUO – No Pay

Be There or Be Broke New York Appellate courts are well known for rendering pithy and clear opinions. In this amazingly brief decision, the appellate court dealt with a dispute between a medical provider and no-fault insurer as a result … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on No EUO – No Pay

Ignorance Can Be Cured

Signed But Not Read Must Be Enforced People with bad driving records are difficult to insure. Companies whose principal or employee is needed but who has a bad driving record, will enter into an agreement, to save premium, where the … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Ignorance Can Be Cured

Intentional Shooting Not Use Of Car

Use of Vehicle Required for UIM Serious injuries often result in strange precedents. However, when a court looks at the facts and language of an insurance policy it will reach the right decision regardless of the extent of injury and … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Intentional Shooting Not Use Of Car

Don’t Lie to Your Insurer

Insurance Requires a Contingent or Unknown Event No one likes to pay insurance premiums. People who do not understand insurance consider a full year without a loss is a waste of premium. They do not recognize that insurance is a … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Don’t Lie to Your Insurer

“Solely” Means What It Says

No Professional Conduct No Cover Wellpoint, Inc. sued a number of its insurers, including Continental Casualty Company and Twin City Fire Insurance Company (“the reinsurers”), who denied coverage for Wellpoint’s defense and settlement of a number of lawsuits against it. … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on “Solely” Means What It Says

Reporting Condition Precedent Upheld

Bumbershoot Must Have Notice Within 30 Days An insurer sought a declaratory judgment that it was not required to show prejudice before denying coverage for liability arising out of a pollution occurrence which the insured did not report within thirty … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Reporting Condition Precedent Upheld

Report Promptly or Lose

Allision – Vessel v. Oil Rig After the allision between the M/V Cathy M. Settoon (the “Cathy”), a vessel owned by Settoon Towing, L.L.C. (“Settoon”), and an oil well. Settoon appealed the district court’s grant of summary judgment in favor … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Report Promptly or Lose

Confession Is Good For Conviction

Arson Conviction Does Not Require Direct Evidence Nicholas M. Montee was convicted of second degree arson by a Wyoming trial court. He appealed. He claimed on appeal that there was insufficient evidence to support his conviction. The Supreme Court of … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Confession Is Good For Conviction

Excess – Primary – Joint

Excess Clauses Cancel Each Other After a trial court found an excess clause in a policy ambiguous and interpreted the policy against its drafter, two insurers appealed the judgment. A New York appellate court reversed the trial court and found … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Excess – Primary – Joint

First Amendment Protects Legal Research

Report of Litigiousness of Plaintiff Not Actionable This case is interesting and is short enough to not require summarization. The full text follows: Jason Nieman, an insurance claims professional, appeals the dismissal of his lawsuit asserting invasion of privacy and … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on First Amendment Protects Legal Research

Must Read Entire Policy

SIR Does Not Reduce Limits The Connecticut Supreme Court was asked to interpret various provisions of a professional liability insurance policy to determine the amount of coverage available when the same general event has given rise to a large number … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Must Read Entire Policy

Defend or Else

It is Safer to Defend Under Reservation Then Deny Defense Insurers continue to believe that they have no duty to defend if the policy provides no duty to indemnify. It ignores the clearly stated rule of insurance policy interpretation that … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Defend or Else

The Tipsy Coachman

Always Promptly Report a Loss Some people, after suffering a less than total loss, decide that rather than involve their insurer they will repair the damage themselves. Perhaps, they do so for fear that their insurer will increase their future … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on The Tipsy Coachman

A Bird in the Hand

Collect Judgment From Defendant Not Insurer Some people, and their lawyers, think it best to gamble in a bad faith suit against an insurer than to keep a sure judgment against a judgment creditor. Such an effort is always a … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on A Bird in the Hand

State Statute Invalid

Federal Insurance Statute Primary The Federal Employees’ Group Life Insurance Act of 1954 (FEGLIA) establishes an insurance program for federal employees. FEGLIA permits an employee to name a beneficiary of life insurance proceeds, and specifies an “order of precedence” providing … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on State Statute Invalid

Carbon Monoxide Flow Not Property Damage

Indemnity Must be in Proportion to Duty to Defend The United States District Court for the Northern District of Alabama, Southern Division (District Court), presented questions regarding the interpretation of commercial general liability insurance policies under Connecticut law. The plaintiffs, … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Carbon Monoxide Flow Not Property Damage

Obligations are Not Payments

Exhaustion of Limits Means Payment The United States Court of Appeal for the Second Circuit was called upon to interpret several “excess” liability insurance policies, which provide insurance protection beyond the protection provided by underlying policies. Each excess liability insurance … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Obligations are Not Payments

Threat Isn’t Enough

Personal Injury Requires Actual Court Proceeding Suit was filed against an insurer who refused to defend lawsuits arising out of the offenses of abuse of process or malicious prosecution. The New Mexico Court of Appeal, in Hinkle v. State Farm … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Threat Isn’t Enough

Contract of Personal Indemnity

Failure to Protect Insurable Interest Expensive Insurance is a contract of personal indemnity and does not follow the title in the land. When parties enter into lease agreements of real or personal property both the lessor and lessee have an … Continue reading

Share
Posted in Zalma on Insurance | 1 Comment

Drug Intoxication Not Accidental Death

No Cover If Legal Drug Abuse Causes Death Plaintiffs Thomas W. Brown, Jr., and Dawn Balicki (collectively plaintiffs) brought an action for declaratory relief against defendants Stonebridge Life Insurance Co. (Stonebridge Life) and Monumental Life Insurance Co. (Monumental Life) asking … Continue reading

Share
Posted in Zalma on Insurance | Comments Off on Drug Intoxication Not Accidental Death