Monthly Archives: August 2015

How to Limit Discovery in a Bad Faith Suit

A Plaintiff Can’t See Everything an Insurer Has Insurance bad faith suits are often contentious and disputes over discovery that fishes for evidence of evil conduct by the insurer. The disputes taken to a trial court, are sometimes irrelevant to … Continue reading

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Why a Structured Settlement Must Be Enforced

Annuitant May Not Sell Part of Structured Settlement Annuity When minors are severely injured in an accident for which an insured person is liable concern for protecting the funds awarded to a minor result in a structured settlement where the … Continue reading

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Danger – Don’t Let a Claims Made Policy Lapse

Why a Claims Made Policy Requires Claim Be Made During Policy Period Claims Made and Claims Made and Reported policies contain traps for unwary insureds who do not understand the limitations of that coverage. Unlike “occurrence” based policies if a … Continue reading

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Insurance Claims Expert’s Testimony Limited

Plaintiff’s Bad Faith Expert Exceeded Proper Limits of Testimony Plaintiffs suing insurance companies find it necessary to retain the services of an expert who will testify that the conduct of an insurer in denying a claim, breached the custom and … Continue reading

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Insurance Fraud & Weapons to Defeat Fraud

A New Book from Barry Zalma Insurance Fraud & Weapons to Defeat Fraud Insurance fraud continually takes more money each year than it did the last from the insurance buying public. There is no certain number because most attempts at … Continue reading

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Is Reliance & Materiality Required to Rescind Marine Insurance?

The Eighth Circuit Adds to Proof Needed For Rescission of Marine Insurance Traditionally, any misrepresentation, concealment, or failure to disclose information concerning the sea worthiness of a vessel is sufficient to rescind the policy. The Eighth Circuit, ruling on a … Continue reading

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Insured Must Be Named In Policy To Obtain Coverage

Another Failure to Get Insurance Money Instead of Financially Viable Defendant Insurance is nothing more than a contract. The contract must be read as written. If a person is not named as an insured nor made an insured by a … Continue reading

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Why You Can Assign A Claim After Loss

When Does an Insured Loss Occur The California Supreme Court concluded it had erred in the past and that since an insured loss occurs or happens at the time of injury during the policy period, and well before there might … Continue reading

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What is The Trigger for Wrongful Arrest?

Insurers Only Obligated to Defend or Indemnify for Losses that Occur During Policy Term A group of consolidated cases represent a dispute among insurance companies about who ends up paying some or all of a five million-dollar settlement paid on … Continue reading

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Never Bring a New Theory to Court of Appeal

Although Benefits Needed There Can Be No Insurance Coverage Without a Contract Shawn Halvorson (Halvorson) challenged the summary-judgment dismissal of his declaratory-judgment action involving a dispute over insurance coverage. In Halvorson v. From, Not Reported in N.W.2d, 2015 WL 4877801 … Continue reading

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How an Easy to Read Policy Made Clear by Definitions

Definition Controls Insurance Policy Interpretation Because insurance law requires insurers to write policies in “easy to read” language modern insurance policies contain multiple definitions to make the “easy to read” policy wording more precise. In Greater Community Bancshares, Inc. v. … Continue reading

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How an Insurer Can Sue to Recover Excessive Fees From Cumis Counsel

Bill Padding by Cumis Counsel Can Be Recovered From Cumis Counsel The advent of requirements that an insurer must pay independent counsel when it reserves its rights and creates a conflict between the insurer and its insured was rife with … Continue reading

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Can an Insurer Obtain Insured’s Tax Returns?

Tax Returns Can Establish Issue If Allowed in Evidence Whenever an issue about insurance coverage can be resolved by presentation of the insured’s tax returns, the insured would claim that tax returns are privileged and not subject to discovery by … Continue reading

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Can Insurer Litigate Coverage While Tort Case Pending?

Declaratory Relief Must Go Forward Insurers faced with a lawsuit claiming its insured caused damages (other than bodily injury of property damage) to a plaintiff intentionally will often result in a declaratory relief action to support a decision to refuse … Continue reading

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Zalma’s Insurance Fraud Letter – August 15, 2015

How There Can Be No Coverage for Fraud In this, the Sixteenth issue of the 19th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on August 15, 2015 continues the effort to reduce the effect of insurance … Continue reading

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What is a Claim?

Demand for Money Is A Claim Claims made liability insurance policies are different from other liability insurance policies. A claims made policy only provides coverage for a claim made during the policy period. Because insurers believe that the word “claim” … Continue reading

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Why Suit Was Worded to Avoid Coverage for the Defendant

The Danger of the Eight Corners Rule The Eight Corners rule applied in states like Louisiana, limits analysis of the coverage issue to the four corners of the law suit and the four corners of the policy. It prevents the … Continue reading

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Courses Available at Discount

I have course(s) live on Proformative, which just launched, and you can save 10% on a quarterly or annual subscription if you follow my link to the platform. If it’s your first course on Proformative, you can take advantage of the same discount everyone … Continue reading

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Why is a National Flood Insurance Program Policy Not Insurance?

Fulfill the Condition Strictly or Get Nothing Contrary to what it is called the National Flood Insurance Program is not insurance. It is, rather, a government funded entitlement that can only pay claims by dipping into the treasury of the … Continue reading

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When is a Policy of Insurance Made?

Acceptance of Offer Effects Insurance Insurance, like every other contract, is formed when there is an offer made, that offer is accepted, and consideration (payment or a promise to pay premium) is given. In a diversity action, a federal court … Continue reading

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We’re Back

My ISP’s server went down and I could post nothing for two days. I will post articles tomorrow. Sorry I had nothing for you today.  

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How a Court Changed Parties Positions to Do Justice

MCS-90 Requires Coverage for Any Vehicle Used by the Insured Courts dealing with insurance issues often find that a logical and simple technical defense can avoid the entire lawsuit. Others believe, as did the District Court of the Northern District … Continue reading

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Why A Claimant Can Not be a Third Party Beneficiary of an Insurance Policy

An Insurer Can Only Act in Bad Faith to Its Insured A third party claimant whose damage was remediated by the insurers for the tortfeasor causing injury to their property sued the insurers for bad faith because, in the plaintiff’s … Continue reading

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How to Lose Coverage as an Additional Insured

Failure to Prove Contract Can Be Fatal Insurance is always a contract. To obtain the benefits of the contract of insurance it is necessary to comply with the conditions set forth in the policy. Vendors of products usually seek to … Continue reading

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Why it’s Important to Select A Forum

Court Applies Choice of Law Agreement of Insured & Insurer Insurance law is not constant across the United States. Some jurisdictions are more favorable to insurers, under certain circumstances, than others. It is prudent, therefore, when an insurer accepts a … Continue reading

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Why There is an Examination Under Oath

The EUO Is a Serious and Important Part of the Insurer’s Investigation The attorney, insurance claims professional or investigator who conducts the EUO can take a role similar to the role of a prosecutor without the usual constitutional restraints controlling … Continue reading

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Why Failure To Read Policy Hurts Both Insured and Insurer

Per Claim Deductible Defeats Cover for Bad Faith Suit It sees to me that no one reads an insurance policy until a claim is made. Even insurers fail to read or apply the terms and conditions of the policy to … Continue reading

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Insurance Fraud Undeterred

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

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