Monthly Archives: March 2016

Mention of Insurance Defeats Judgment

No Evidence of Exception to Allow Mention of Insurance or Lack of Insurance at Trial In Maryland, like most states, mention of insurance in a negligence trial is usually prohibited because it can be prejudicial and cause confusion to the … Continue reading

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Policy Must Be Read as Written

P&I Insurance Requires Causal Relationship to Vessel The difference between marine and land-based incidents and their insurance becomes difficult when land-based events meld with marine activities. When the two are involve in causing an injury insurers who must respond often … Continue reading

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No Insurance for Lawyer who Cheats Client

Lawyer’s E&O Does Not Cover Investment Advice Lawyers provide legal advice and counsel to their clients. When a lawyer buys errors and omissions (E&O) insurance the lawyer seeks protection from his or her errors in providing legal advice to the … Continue reading

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New York’s Statutory Version of Notice-Prejudice Rule

Notice Within Two Years Raises Need To Prove Prejudice For many years New York has refused to apply the notice-prejudice rule that is applied in most jurisdictions across the country. The New York Legislature, as a result of the failure … Continue reading

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Efficient Proximate Cause

Insured Must Prove Loss & Insurer Must Prove Exclusion It is the obligation of an insured of a first party policy to prove that a loss occurred that is covered by the policy. Once that proof is received it is … Continue reading

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Agent’s Lie to Insurer Causes Policy to Be Void

Independent Insurance Agent Represents Insured not Insurer Most people do not understand insurance. Most do not understand the importance of the absolute truth of the matters of fact stated in an application for insurance. As a result the average person … Continue reading

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All Parties Required for Reformation of Insurance Policy

Right to Reformation New York appellate courts are well known for their truly brief, succinct and well reasoned opinions. When a tenant expected to be made an additional insured on a liability policy it sought to reform a policy that … Continue reading

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Bad Faith Charge Trumps Simple Math

Bad Faith Suit Requires Bifurcation When an insurance claim is denied the person seeking benefits will usually get upset and seek redress from the courts and a bonus of tort and punitive damages. They also try to obtain evidence from … Continue reading

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Insurance and Diminution of Value Claims

How to Determine The Quantum of a Loss Since insurance was invented in ancient Sumeria, when insurance policies were written on clay tablets, there have been disputes between the insured and the insurer. Since tort law first came into existence … Continue reading

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The Examination Under Oath

The Reasons For the EUO The insurance Examination Under Oath (“EUO”) is a formal type of interview authorized by an insurance contract. It is taken under the authority provided by a condition of the insurance contract that compels the insured … Continue reading

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Expert Witnesses May Not Testify to Legal Conclusions

Unwise to Settle for Claimed Policy Limits Without Investigating All Available Coverages and Funds Litigation of serious injuries will often be sidelined by limited available insurance and assets to pay a judgment for the true value of an injury. Injured … Continue reading

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Sit on Your Rights & You Will Lose Them

Statutes of Limitation Serve an Important Function In an attempt to clean up with damages after hurricane Katrina after sitting on its rights for many years, Marion’s Cleaners, LLC  sued its insurer seeking indemnity from its insurer for damages that … Continue reading

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Damage not Negligent Acts Is Occurrence

An Insured Can Only Kill a Child Once When a person is injured or killed as the result of the negligence of another an insurer is obligated to defend and indemnify its insured up to the limits of liability of … Continue reading

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Shooting Arises out of Use of a Vehicle

UIM Cover Exceedingly Broad in Washington State A truly stupid person fired a weapon from an automobile – claiming no intent to harm anyone but striking plaintiff Heidi Kroeber and injuring her. She claimed she was entitled to underinsured motorist … Continue reading

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Zalma’s Insurance Fraud Letter March 15, 2016, Volume 20, No. 6

Zalma’s Insurance Fraud Letter March 15, 2016, Volume 20, No. 6 Zalma’s Insurance Fraud Letter Welcome to the March 15, 2016 Issue of ZIFL Click here to receive the current issue In this, the third issue of the 20th year … Continue reading

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Waiver of Subrogation Only Applies to Those Insured

Creative Argument Against Negligence Action Fails On February 1, 2014, a seven alarm fire caused catastrophic damage to a seven story condominium complex with thirty-one commercial and residential units at 31 Massachusetts Avenue in Boston. The plaintiffs, who own apartments … Continue reading

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Only Insured Can Stack Policies

 Only an “Insured” Person Possesses Standing to Stack Insurance Stacking of insurance policies allows an insured with two different policies to combine the limits of the policies even though each have a single per occurrence limit of liability. In Montana, … Continue reading

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No Coverage for Intentional Tort

Malicious Prosecution Suit Not Accidental A standard liability insurance policy insures against bodily injury or property damage caused by an occurrence. Intentional torts, by definition, can never be an occurrence since they are both expected and intended by the tortfeasor. … Continue reading

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Misrepresentation & Breach of Warranty Grounds to Rescind

Surreal to Ask a Court to Believe a Lie on Application Is Not Material Insurers are not able to conduct a thorough investigation into representations made by a prospective insured at the time an application is submitted. Rather, the insurer … Continue reading

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Certificate Can’t Create Coverage Not In Policy

Agent Must Avoid Issuing Certificate the is not Accurate Insurance contracts are to be interpreted in consideration of the language in the policy. Outside documents that are not part of the policy and a policy may not, under normal circumstances, … Continue reading

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Broker Only Agent of the Insured

Evidence from Insurer Needed to Prove Agency It is axiomatic that no one reads their insurance policy until a claim arises. When they find that the policy does not provide the coverage they needed they sue the insurer and the … Continue reading

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Waiting To Assert Argument Fatal

Default in Declaratory Relief Action Admission There is No Coverage When a person desires that an insurer provide defense and indemnity the person must give the insurer notice of the suit against it, cooperate with the investigation of the insurer … Continue reading

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Prayer is Not Enough to Prove A Claim

Insured Must Produce Evidence of Covered Claim Insurance claims are not difficult for the insured. All an insured must do is prove that the property has been damaged by a peril insured against. After the insured meets that rather simple … Continue reading

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Zalma Insurance Consultants Launches Video Insurance Training Program

“Zalma’s Insurance 101” Provides Free Education on Insurance, Insurance Claims Handling and Coverage Zalma Insurance Consultants and ClaimSchool Inc. have launched “Zalma’s Insurance 101,” a new online resource that provides video-based insurance training on http://www.zalma.com/videoblog/. Each educational video, which is … Continue reading

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Comply with Statute & Nonrenewal Will Be Affirmed

Failure to Cure Increased Risk Sufficient Ground to Nonrenew Insurers will often renew a policy of homeowners insurance as a matter of course as long as the premium is paid. However, if an insurer determines that the risk of loss … Continue reading

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Disclaimer of Coverage Must Be Prompt & Clear

Failure to Promptly Disclaim Coverage Requires Insurer to Defend Excluded Child Molestation The City of New York (City) sued an insurer under a commercial general liability (CGL) policy, seeking a declaration that the insurer was obligated to indemnify the City … Continue reading

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Zalma’s Insurance Fraud Letter – March 1, 2016

Zalma’s Insurance Fraud Letter  March 1, 2016 Welcome to the March 1, 2016 Issue of ZIFL Click here to receive the current issue In this, the fifth issue of the 20th year of publication of Zalma’s Insurance Fraud Letter (ZIFL), … Continue reading

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