Monthly Archives: September 2015

When a Court Errs by Ignoring a Full Credit Bid

Mortgagee’s Interest Limited to Security for Debt When an insurance company is faced with competing claims to the proceeds of an insurance claim and cannot obtain the agreement of the competing parties it has no choice but to interplead the … Continue reading

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Sexual Abuse of Child Never An Accident

Why Insurance Won’t Respond to Grandfather’s Evil Acts Although liability insurance is designed to protect the insured against lawsuits seeking damage for bodily injury it does not, should not, and cannot cover some types of bodily injury. By definition, the … Continue reading

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Overzealous Expert Excluded

Experts May Not Give Opinions on Legal Questions Expert witnesses are usually essential to assist the trial court in evaluating claims of insurance coverage, insurance policy interpretation and insurance claims handling. The expert testimony, however, must be based upon the … Continue reading

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Coverage Case Stayed to Benefit Insureds and Claimants

The Need to Avoid Different Fact Findings Insurance coverage disputes brought to defeat coverage while a tort suit is pending in a different court is prejudicial to the insureds if the coverage issue requires a resolution of factual disputes that … Continue reading

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Great Deal — Insurance Claims 101 & Book

Insurance Claims 101 Webinar SKU: INSWEB Email to a Colleague Be the first to review this product Availability: IN STOCK $99.00 Qty: Quick Overview Insurance Claims 101: Webinar + Book + CE Credit for ONLY $99 September 30, 2015 at 2pm … Continue reading

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How Far Can A Lawyer Fall

Lawyer Stays In Jail As a Result of Health Care Fraud Scheme When the FBI continually failed to find evidence to prosecute Al Capone for his many criminal activities they were able to put him out of business by charging … Continue reading

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Fairly Debatable Claim Decision Defeats Bad Faith

UIM Claim Requires Proof Insurance companies are obligated to thoroughly investigate a claim presented to it and make decisions based upon that investigation when evaluating the claim. In Peden v. State Farm Mutual Automobile Insurance Company, Slip Copy, 2015 WL … Continue reading

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It’s Sinful To Defraud Church Mutual

Proactive Fraud Fight The attempt to reduce insurance fraud takes more than denying a fraudulent claim and reporting that fraud to police agencies. If fraud is to be effectively reduced insurance companies must be proactive and take the profit out … Continue reading

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The Unfortunate Event Test Rules

Can’t Aggregate Three Accidents into One Insurance policy limits of liability can cause disputes between insurers and their insureds so that if there is one accident rather than three (even though the result from a single continuous and repeated exposure … Continue reading

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Declaratory Relief Action Without Insured Fails

Federal Court Refuses to Confuse Issue of Insurance Limits Insurance coverage disputes can be resolved by the seeking a court’s order in a declaratory relief action. Both state and federal courts have procedures available for resolving such disputes. However, to … Continue reading

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Insurance Claims Expert’s Testimony Limited

Claims Expert Can’t Testify About Law Some insurance claims expert witnesses attempt to testify about more than the custom and practice of the insurance industry and the standard of care owed by an insurer to its insured. When the expert … Continue reading

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Courts Will not Strain to Create an Ambiguity Where None Exists

An Insurer Has the Right to Choose Who and What It Will Insure Since insurance is nothing more than a contract between an insurer and those the insurer is willing to insure, the insurer has the unquestioned right to decide … Continue reading

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Insurance Shouldn’t Be Mentioned To Jury

Keep it Short & Sweet & You Can Still Do It In a tort trial it is improper to mention insurance or lack of it because the information might prejudice the jury in its deliberations. If it feels the defendant … Continue reading

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Zalma’s Insurance Fraud Letter – September 15, 2015

Why Do Prosecutors Claim There is Hard Fraud vs. Soft Fraud In this, the Eighteenth issue of the 19th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on September 15, 2015 continues the effort to reduce the … Continue reading

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Fraudulently Obtained Workers’ Compensation Policy

Rescission Fails Because It Was Brought in Wrong Court Rescission is an ancient equitable remedy that allow, with regard to insurance, an insurer to void a policy from its inception, if the insured lies when the policy is obtained. To … Continue reading

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When Does the Mediation Privilege End?

Privileges Can’t Be Waived in Error Lawyers, just like everyone else, make mistakes. They have been known to make mistakes out loud to a judge. What happens when a lawyer makes a mistake in open court is that actions must … Continue reading

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Buyers Remorse Doesn’t Get You More Coverage

When an Agent Fulfills His Obligation About UM/UIM Coverage Almost every state has a law that requires auto insurance companies to offer uninsured motorist (UM) coverage and Underinsured Motorist (UIM) coverage to their insureds. The insured, to save money, can … Continue reading

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What the Heck is a Bumbershoot Policy?

Excess Insurance Limited to Its Terms Every insurance dispute attempts to find, or create, an ambiguity in a policy to defeat what might necessarily be a clear and unambiguous language of the policy. It is always the duty of an … Continue reading

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Duty to Report Promptly Is a Condition Precedent

When a Late Notice Defense Is Enforceable The notice requirement of an insurance policy has been weakened  by multiple appellate decisions requiring a showing of prejudice to the rights of the insurer to investigate and control the litigation. Westfield Insurance … Continue reading

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Theft Is Not “Property Damage”

A CGL Is Not a Cargo Policy A Commercial General Liability (CGL) policy is a third party liability insurance policy only insures an insured for risks of loss from third parties claiming damage to their property or bodily injury. In … Continue reading

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Keep it Simple, Stupid

Over-Pleading Makes Insurer Acting in Bad Faith Look Good When an insurer fails to deal fairly and in good faith with its insured it compels its insured to sue to gain the benefits promised by the policy. Sometimes, rather than … Continue reading

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Fail to Read Your NFIP Policy at Your Own Peril

Agent, Read The Policy Before Advising Insured of its Provisions The National Flood Insurance Program policy is a creature of federal statute and is limited to what it says to protect the federal treasury. In Pittman v. Farmers Fire Ins. … Continue reading

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INSURANCE CLAIMS 101 – A Webinar by Barry Zalma

September 30, 2015 at 2:00pm EDT Get the Webinar + Book + CE Credit for ONLY $99 at http://www.nationalunderwriter.com/reference-bookstore/property-and-casualty/zalma-insurance-claims-library/insurance-claims-101.html?utm_source=Zalma&utm_medium=Blog&utm_campaign=ZalmaWebinar Exclusive $99 Webinar Bundle Offer Includes: •    1-Hour Webinar presented by Barry Zalma:  Insurance Claims 101 •    Insurance Claims:  A Comprehensive … Continue reading

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Does a D & O Policy Have a Duty to Defend?

D & O Insurer’s Duty Only Arises After Final Judgment One of the most dangerous positions in business, in my humble opinion, is being a director or officer of a small condominium association. People, not normally involved in business, find … Continue reading

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Zalma’s Insurance Fraud Letter — September 1, 2015

Ethics & The Insurance Fraud Investigation In this, the Seventeenth issue of the 19th year of publication of Zalma’s Insurance Fraud Letter (ZIFL) Barry Zalma, on September 1, 2015 continues the effort to reduce the effect of insurance fraud around … Continue reading

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