Monthly Archives: May 2015

May a Lender Force Place Insurance?

 Profits, Commissions & Force Placed Insurance No one likes to pay insurance premiums and would prefer to buy insurance the day before the fire. Unfortunately true psychics are rare so we all buy insurance to protect against unknown future losses. … Continue reading

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Speculative Conflict & The Right to Independent Counsel

Construction Defect Suit Defended Under Reservation of Rights Liability insurers commonly have a duty to control defense of any suit against its insured. If an insurer issues a specific reservation of rights that creates a conflict of interest between the … Continue reading

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Webinar by Barry Zalma

Set-Up of Insurer Bad Faith, Defence of Bad Faith Suits and “Reverse Bad Faith” Claims: Insurer vs. Policyholder Perspectives Attend Live Online Training Only http://www.complianceonline.com/set-up-of-insurer-bad-faith-and-defence-of-bad-faith-suits-and-insurer-policyholder-perspectives-webinar-training-703922-prdw?channel=suraj June 05, Friday 10:00 AM PDT | 01:00 PM EDT Why Should You Attend: This … Continue reading

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Is an Insurer Obligated to Pay For Coverage Not Requested?

You Only Get What You Pay For It is almost expected that no one reads their insurance policy until after a loss. Similarly, people only complain about the inadequacy of the policy acquired if it, as it was ordered, does … Continue reading

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What Are the Insurance Obligations of a Condo Unit Owner?

Must Condo Association Buy Insurance to Protect Contents of Unit Owner? Condominium Associations are, by the documents that cause them to exist, put the Association in control of the exterior of the structures and the common areas. Condominium unit owners … Continue reading

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An Important Tool – The Examination Under Oath

 False Answer at EUO Is Fraud A False Answer as to Any Matter of Fact Material to The Inquiry, Knowingly And Willfully Made, With Intent to Deceive The Insurer, Would Be Fraudulent The position taken by the U.S. Supreme Court … Continue reading

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Are Intentional Acts Insurable?

Intentional Acts and Insurance “Insurance is a contract whereby one undertakes to indemnify another against loss, damage, or liability arising from a contingent or unknown event.” [California Insurance Code Section 22] As a result an intentional or intended action that … Continue reading

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Is The Car an Innocent Bystander to Road Rage?

Road Rage Assault Out of Car Not Part of Use of the Car? Road rage is a common event in heavy traffic situations where a person making a long commute becomes frustrated and any slight can result in aggression. People … Continue reading

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Can a Person Be a Member of a Household Living in a Separate Structure?

What the Heck Is Curtilage? Allstate Insurance Company brought this action seeking a declaration that Gordon Hammers’s umbrella insurance policy did not cover damages arising out of a car accident with Ellery Chacksfield for which Gordon’s brother Robert had been … Continue reading

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Arson-For-Profit Must Repay Insurer

No Chance of Case by Insurer Against Insured for Tort of Bad Faith A homeowners’ insurer sued in state court to declare an insured’s policy void, based on allegations that insured intentionally set fire to her home. Following removal of … Continue reading

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Does the AIA Construction Contract Avoid Litigation?

Insured May Effectively Waive Subrogation Subrogation is an equitable remedy where an insurer that pays to indemnify its insured will be able to step into the shoes of the insured and sue any tortfeasor who is responsible for the property … Continue reading

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When a Customer Is Not a Customer

Bankers’ Bond Requires Loss to Bank’s Customer In an unusually brief, succinct and intelligent decision the Ninth Circuit Court of Appeal interpreted an insurance contract, called a financial institution bond, as it was written in First Nat. Bank of Northern … Continue reading

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What Happens When State Formed Insurer Acts in Bad Faith?

First Party Bad Faith Creature of Statute in Florida Citizens Property Insurance Corp. (Citizens) was created by the state of Florida to deal with wind damage claims from the annual damage caused by hurricanes passing through the state that standard, … Continue reading

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Murder For Insurance

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

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When Are Intentional Acts Also Accidental?

When Herbicides Destroy Crops Litigation Follows Insurance policies are said to give everything in large print and take it away in fine print. That canard is no longer true since all modern policies are written in common language and each … Continue reading

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Is It Time to Reconsider the Notice-Prejudice Rule?

Insured’s Inaction Defeats Coverage New York, unlike many other states, is willing to enforce provisions requiring report of a loss as soon as practicable. When an insured takes as much as seven to ten months to report a loss it … Continue reading

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Free Claims Magazine Subscription

As a subscriber of Claims magazine, in appreciation of my loyalty Claims Magazine  offered me the opportunity to invite you to subscribe for FREE to the publication that provides complete coverage of the claims industry. Since I write for the … Continue reading

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California SIU Regulations

The Minimum Standards for Dealing With Potential Insurance Fraud in California California’s SIU Regulations are designed to assist California insurance claims personnel, claims professionals, independent insurance adjusters, special fraud investigators, private investigators who work for the insurance industry, the management … Continue reading

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Uninsured Motorist Carrier Gets Credit for Payment by Insolvent Insurer

Serious Injuries Not Enough To Get UIM Uninsured Motorist Coverage (UM) exists to provide coverage for insured injured by an uninsured motorist. When that motorist carries insurance only to find the insurer becomes insolvent, is technically uninsured. If an admitted … Continue reading

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How to Avoid the Tort of Bad Faith

You Need a Professional Claims Staff I was honored to speak on avoidance of the tort of bad faith by the Pacific Claims Executives Association on May 7, 2015. I explained to the executives attending my opinion for avoiding the … Continue reading

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I Spoke On Avoiding Bad Faith

The Pacific Claims Executives Association honored me by asking me to speak to them about methods to avoid the tort of bad faith at their meeting yesterday in Monterey, California. For that reason, as I travel back to my home … Continue reading

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Policy Definition Controls

The Reason for Non Owned Auto Provisions Auto liability insurance policies are often limited to provide coverage only for the automobile whose risk of loss is insured.  Policies contain Non Owned Auto provisions to avoid coverage for autos that are … Continue reading

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What is Needed to Prove You are an Insured

To be Insured Party Must Fit Definitions in Policy FACTS Plaintiff sued his insurer seeking a declaration that he is a “covered person” under a liability policy issued by defendant Stella Maris Insurance Company, Ltd. (SMI). SMI is a single-parent … Continue reading

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Can Defendant Depose Plaintiff’s Counsel?

Lawyer As Witness Insurance bad faith cases are never easy. Often the parties, and the counsel for the parties, become combative and do not always act professionally. Each side tries to gain an advantage over the other. The specter of … Continue reading

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Conflict Stays Declaratory Relief

Whisky Infringement & Declaratory Relief National Trust Insurance Company (“National Trust”) sued Heaven Hill Distilleries, Inc. (“Heaven Hill”) seeking a declaration from the District Court for the Western District of Kentucky, that it has no duty under the terms of … Continue reading

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Advertising Injury Coverage Does Not Cover Breach of Contract

There Must Be Alleged or Actual Advertising Injury to Require Defense Last year I wrote, here, a posting called “Insurer Fails To Assert Exclusions to its Detriment” which can be read at http://zalma.com/blog/insurer-fails-to-assert-exclusions-to-its-detriment/ . Since then Maryland’s highest court has changed … Continue reading

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Why Insurance Fraud Succeeds

Zalma’s Insurance Fraud Letter May 1, 2015 Happy Law Day – Celebrate the Magna Carta In this, the Ninth issue of the 19th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on May 1, 2015 continues the … Continue reading

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