Monthly Archives: April 2015

Extrinsic Evidence Eliminates Duty to Defend

Intentional Pollution Not Covered In California determining the existence of a duty to defend is not limited to the zealous or artful pleading of the plaintiff the court must also consider extrinsic evidence. In Hollyway Cleaners & Laundry Co., Inc. … Continue reading

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Subrogation

Injured Parties Owe Fiduciary Duty to Health Insurer Automobile Accident Leads to Settlement, Insurance Payments William and Regina Angel are married and have two children, William, Jr., and Josephine. On July 30, 2009, the Angel family was in an automobile … Continue reading

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A “Heads I Win, Tails You Lose” Story

Help, My House Is Falling Into The Sea The following is a story from my e-book, “Heads I Win, Tails You Lose” which is a fictionalized story based on a true story with the names and places changed to protect … Continue reading

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Diminution

Is There a Right to Diminution In Value After Repairs This is an excerpt from my e-book Diminution in Value Damages available at http://www.zalma.com/zalmabooks.htm.   Since the Georgia Supreme Court decided Insurance Co. v. Mabry, 274 Ga. 498, 556 S.E.2d … Continue reading

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Is a Liability Policy a First Party Policy?

Unambiguous Statute Must Be Interpreted as Written Insurance parlance defines the first party as the person insured, the second party as the insurer and the third party as a person who claims injury as a result of actions of the … Continue reading

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Applicant has Duty to Tell The Truth

Lawyer Applying For Insurance Should Never Lie to the Insurer The covenant of good faith and fair dealing implied in every contract of insurance requires that neither party should misrepresent or conceal material facts from the other to deprive the … Continue reading

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Unfair Trial Tactics Require Retrial

Can A Party Mention Insurance In a Tort Case? Under any court system it is difficult to attain a true and just result even under the most favorable conditions because of the frailty of man and his subjectivity to various … Continue reading

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How To Determine Who’s On First

Primary v. Excess Determined by Contract Construction contracts are, among other things, risk transfer devices. The owner transfers its risk of lost to the general contractor and the sub-contractors, the contractors and sub-contractors transfer the risk to their sub-contractors and … Continue reading

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Can an Insurer Limit Coverage as It Pleases?

Insurer Has Unquestioned Right to Set Terms of Insurance Contract Insurers have the unquestioned right to select whom it will insure and the risks it is willing to take as long as the contract is clear, unambiguous and not in … Continue reading

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ISO Files Most Important Homeowners Change in 40 Years

When is Your Home Not Where You Reside? I thank my friend, Bill Wilson, CPCU, ARM, Associate Vice President, the Big I, who kidly gave me permission to reprint his article from the Big “I” Virtual University Newsletter. Unlike everything … Continue reading

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When Has Litigation Gone Too Long?

More on the Dam Case Some litigation seems to continue forever. When a dam was destroyed by flood in 1997 litigation began between the owners of the dam and their insurer. The litigation has gone through trial, appeal, back to … Continue reading

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Does Extended Reporting Period Extend Claims Made?

Claims Made & Reported Policy Limits Exposure to Loss to a Specific Time Insurers institute a claims made and reported liability policy to limit their exposure to loss to a specific period of time so that they have no concern … Continue reading

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Not Nice To Sue Your Spouse

Defense Required for Cross-Claim In Suit For Injuries to Spouse Sue Kim (hereinafter Sue) allegedly was injured in a two-car accident that occurred in Pennsylvania disputes arose over insurance coverage. When she was injured Sue was a passenger in an … Continue reading

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Zalma’s Insurance Fraud Letter – April 15, 2015

What Is Insurance Fraud? In this, the Eighth issue of the 19th  year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on April 1, 2015 continues the effort to reduce the effect of insurance fraud around the world. … Continue reading

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Why the “Bad Faith” Expert Couldn’t Testify

Bifurcated Case Limited to Breach of Contract Cases seeking damages for the tort of bad faith are often bifurcated so that the jury first is asked to decide if there was a breach of the insurance contract. If the jury … Continue reading

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May Insured Lie To Insurer When Applying?

Failure to Disclose Involvement With Ponzi Scheme Fatal to Insurance Many policyholder lawyers forget that the obligation to deal fairly and in good faith in insurance transactions is mutual. The insured owes the duty to the insurer to deal fairly … Continue reading

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May Regulator Exceed Power to Protect Public?

Regulator Not Allowed to Protect Insured From Insured’s Mistake Modern homeowners insurance policies insure against the risk of loss to the home up to the full cost to repair or replace up to the limit of liability chosen by the … Continue reading

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A Fictionalized Story of Real Insurance Fraud

The Trees that Washed Away The story that follows is based on fact. I was the lawyer who represented the insurer. The names, places and descriptions have been changed to protect the guilty. This story was written for the purpose … Continue reading

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Broker Need Only Acquire Insurance Requested

The Least Expensive Insurance is Not Always Best People who are not knowledgeable about insurance will select their insurer based upon the lowest premium price and will pick the lowest possible coverage limits available when deciding on the insurance to … Continue reading

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When Is an Intentionally Set Fire Not Vandalism?

A Fire Started on a Kitchen Floor is not Friendly As a young adjuster I learned the difference between a friendly and an unfriendly fire. A friendly fire is one in a place where it can be contained like an … Continue reading

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What the Heck is an Honorable Engagement Agreement?

Arbitration Not Necessarily a Way to Resolve Problems A party that implores a court to vacate an arbitration award normally faces a steep uphill climb: the scope of judicial review of arbitration awards is among the narrowest known in the … Continue reading

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Emotion Should Never Be Basis of Judgment

Judgments Must Only Be Based on Evidence Litigants are entitled to a fair trial culminating in a jury verdict rendered after consideration of properly admitted evidence and the law. Often, although equal in the eyes of the law, insurance companies … Continue reading

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Is Entrustment Exclusion Enforceable?

Do Not Entrust Your Property to a Thief Businesses and people, as a matter of course, will entrust their property to others. They place product in a commercial warehouse; they let friends or relatives have control of their property; and … Continue reading

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“Insurance Law” A New Book From Barry Zalma

Insurance Law Now Available for Pre-Orders Try It RISK-FREE for 30 Days—Your Satisfaction is Absolutely Guaranteed. For Fastest Service—Call 1-800-543-0874 Today! Also you can order on line at http://www.nationalunderwriter.com/insurance-law.html INSURANCE LAW Only Insurance Law—the professional’s all-new, one-stop tool—delivers real-world expertise … Continue reading

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Zalma’s Insurance Fraud Letter – April 1, 2015

 Anti-Fraud Efforts Continue This is not an April Fool’s joke. Rather, it is the announcement of the Seventh issue of the 19th  year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on April 1, 2015 continues the effort … Continue reading

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