Monthly Archives: February 2015

Innocent Mortgagee Collect – Spouse Not Innocent

Going to Pot How to Lose Fire Insurance Coverage Members of the public think that the covenant of good faith and fair dealing only applies to the insurer and the insured can do whatever they want and hide important information … Continue reading

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Plea of Guilty to Insurance Fraud Stands

Insurance Fraud Results in Eight Years in Prison When a party pleads guilty to multiple crimes in open court and with the advice of competent counsel he or she can expect to spend time in jail or prison and to … Continue reading

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Does “Notice-Prejudice Rule” Apply to Claims Made Policy?

Claims Made Policies Are Different From Occurrence Policies An insured brought a state-court action against a claims-made directors and officers (D&O) liability insurer to recover for breach of contract in connection with insurer’s denial of claim for reimbursement of legal … Continue reading

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Rescission Means Policy Never Existed

Innocent Co-Insured Doctrine Does Not Apply to Rescission Legal malpractice insurance policies are purchased by one member of a law firm on behalf of all partners and associates in the firm. The application for insurance or renewal is the basis … Continue reading

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Any Insured Can Change Limits

Jury’s Finding Is Affirmed When two or more people are named insured’s on a policy of insurance any one may, by the terms of the contract of insurance, ask the insurer to amend or modify the policy. When a loss … Continue reading

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Insurance Irrelevant to Subrogation Action

Subrogation is Only Either a Tort or Breach of Contract Action Subrogation lawsuits seek recovery from a tortfeasor who caused damage to property, the risk of loss of which was insured, and allows the insurer to step into the shoes … Continue reading

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Can Insured Profit as an Additional Insured?

Construction Defect Defense Claims to Multiple Insurers May Allow Insured to Profit From Claim Because of the way construction contracts are written multiple insurers who named or caused the general contractor to be an additional insured, are required to defend … Continue reading

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Arson-for-Profit Fails Because of Lack of Insurable Interest and Misrepresentation

Insurance Competence Needed to Commit Insurance Fraud Arson is relatively easy. Pour some gasoline and light a match and a fire will burn. Successfully turning an arson fire into profit is more difficult and requires some knowledge of insurance and … Continue reading

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Comply With Insurance Condition or Lose

Failure to Submit Timely Proof of Loss Fatal to Flood Claim Flood insurance, because it is part of a federal government program is different from insurance written by commercial insurers. As a result, courts require the policy to be strictly … Continue reading

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Insurance Policy Means What It Says

No Cover for Person Not Named as an Insured Some people refuse to accept the fact that an insurance  policy is controlled by the language of the policy if clear and unambiguous. When a policy explains, in clear and unambiguous … Continue reading

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Passover 2015

Passover 2015 – In English Passover is a time when every Jewish father and mother tell their children the story of the Exodus of the Jews from slavery in Egypt. It is a story that Jewish people have told every … Continue reading

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Discount for Ace Conference

Barry Zalma to Speak at ACE Conference & You Can Get a Discount   Here is, from me as one of the speakers, an opportunity to get a discount for attending the 19th Annual America’s Claims Event. We here at … Continue reading

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Is Pool Pop-Out Excluded?

Clear And Unambiguous Exclusion Is Effective Swimming pools are fun to have but they can often be an expensive addition to a home. A swimming pool is a concrete shell placed in a hole in the ground and held there … Continue reading

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Insurance Fraud Fails Occasionally

    Zalma’s Insurance Fraud Letter February 15, 2015 In the Fourth  issue of its 19th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on February 15, 2015, continues the effort to reduce the effect of insurance fraud … Continue reading

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Interviewing is an Art & Science

Getting the Whole Truth The following is an excerpt from my ebook “Getting the Whole Truth” now available from ClaimSchool, Inc. at http://www.zalma.com/zalmabooks.htm. Prejudice Blocks the Truth The foremost aim of the interview is to learn the truth, the whole … Continue reading

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New E-Books from Barry Zalma

New E-B00ks From Barry Zalma Getting the Whole Truth The interview is an essential form of fact gathering for every type of human interaction. Interviews happen everywhere; they are performed by almost everyone. Interviewing is also an art, and the … Continue reading

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Fairly Debatable Position Sufficient to Avoid Claim of Bad Faith

Defense Duty Exists Without Right to Indemnity Indemnity agreements and additional insured agreements go hand in hand. The insurer agrees to produce the defense and indemnity its insured agreed in the indemnity agreement. Sometimes, the insurer is kept in the … Continue reading

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Misrepresent Material Fact – Lose Coverage

Uberrimae Fidei Allows Voidance of Marine Insurance Policy Insurance has, from its inception, been an agreement requiring utmost good faith by both parties to the contract of insurance. As used in maritime insurance failure of an insured to deal in … Continue reading

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Mailing is All Needed to Perfect Nonrenewal

Agent Not Required to Inform Insured of Nonrenewal Some cases go on and on with trial decisions reversed, remanded, retried and appealed again. In Collins v. State Farm Ins. Co., — So.3d —-, 2015 WL 468970 (La.App. 4 Cir.), 2014-0419 … Continue reading

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It Doesn’t Pay to Seek Penalties Not Owed

Settlement Is Only a Settlement When Agreed to In Writing States, like Louisiana, have enacted statutes requiring insurers to pay an agreed claim immediately but no later than 30 days from the date of the agreement. In Louisiana a court … Continue reading

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Investigating Arson For Profit

The Most Evil Form Of Insurance Fraud The following was excerpted from my book “The Insurance Fraud Deskbook” published by the American Bar Association, Tort and Insurance Practice Section and is available at : http://shop.americanbar.org/eBus/Default.aspx?TabID=251&productId=214624; or  orders@americanbar.org, or 800-285-2221.  When … Continue reading

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Covenant Not to Execute Not A Release

Claim Against Broker Can Be Assigned It is almost common for a plaintiff who gets a large judgment against a tortfeasor that cannot be collected to enter into an agreement with the defendant to not execute upon the judgment in … Continue reading

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Duty to Defend Not Effected by Denial of Motion for Summary Judgment

Defense Can’t Be Avoided by Use Of Limine Motions The duty to defend owed by an insurer is very broad and requires an insurer to defend even if there is only a potential for coverage on the facts of the … Continue reading

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Evidence Required to Defeat Summary Judgment

No Right to UIM Without Proof of Damages In Excess of Tortfeasor’s Insurance When a bodily injury claim is settled with a tortfeasor the injured party often suffers from buyer’s remorse and tries to find some way to get more … Continue reading

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Endorsement Trumps Body of Policy

No Coverage for Assault or Battery There are some risks that most insurers are unwilling to take. Assault and battery are two of those risks, especially when dealing with venues where alcoholic beverages are served. Coverage for such risks are … Continue reading

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Crime Often Pays Until the Criminal Is Caught

Chutzpah – The Search for a Writ of Corum Nobis Insurance fraud comes in many different forms. Most despicable of those are when a government official who is also an insurance professional abuses the public trust to profit from insurance … Continue reading

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Insurance Fraud Continues Unabated

    Zalma’s Insurance Fraud Letter – February 1, 2015 In the third issue of the 19th  year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on February 1, 2015 continues the effort to reduce the effect of insurance … Continue reading

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