Monthly Archives: June 2016

Insurable Interest & Coverage

Insurance Dispute Resolved by Recognition of Insurable Interest First party property insurance does not insure property but, rather, insures a person named as an insured against the risk of loss of property in which the person insured has an insurable … Continue reading

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Declaratory Relief Only Available If There is an “Actual Controversy”

Insurer’s Dispute Premature Insurance companies often seek the help of federal courts to determine disputes over which insurer owe what to an insured in what amounts. In Progressive American Insurance Company v. Kanzer, Slip Copy, United States District Court, Florida, … Continue reading

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Court May Not Change LLP to General Partnership

LLP In New Jersey Not Required to buy Tail Coverage on Winding Up Lawyers did business as a limited liability partnership (LLP) for some years and then decided to wind up, dissolve, the partnership. After the LLP was dissolved and … Continue reading

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Failure to Read and Apply Policy Is Expensive

Clear & Unambiguous Exclusion Must be Enforced I have spoken over the last 48 years, until I was blue in the face, that before a decision is made on a claim, before a suit is filed, the people involved must … Continue reading

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Payment of Appraisal Award Promptly Defeats Bad Faith

Breach of Contract Needed For a Bad Faith Claim Lay people, and some of their lawyers, believe that if they are not paid exactly what they want on a claim promptly and without question is sufficient to establish a bad … Continue reading

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First Annual Claims Magazine/Americas Claims Event Legend Award

Barry Zalma Named an Insurance Legend I was honored on June 24, 2016 to be the first person awarded the Claims Magazine/America’s Claims Event (ACE) Legend Award. In the June 2016 issue of Claims Magazine an article explained some of … Continue reading

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CGL is Not a Surety

Insured Must Damage Property Not Work to Be Covered by CGL Contractors often have difficulty with their insurers. A CGL policy covers only accidents and do not guarantee the workmanship of the insured. People who obtain judgments against their contractor … Continue reading

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Insured’s Settlement With Underlying Insurer Is Fatal to Claim to Excess

Excess Insurance Only Applies After Exhaustion of Primary Coverages Uninsured and Underinsured Motorist (UM/UIM) is designed to protect the public injured by an uninsured or underinsured motorist by purchasing UM/UIM coverage to avoid the risk of being injured by an … Continue reading

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False Alarm Warranty Allows Insurer to Void Coverage

Innocent Material Misrepresentation Sufficient for Insurer to Rescind The covenant of good faith and fair dealing requires both the insured and the insurer to deal fairly and in good faith when dealing with the acquisition of insurance. When an insurer … Continue reading

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Consideration Required for Insurance

Failure to Pay to Be Made Insured Fatal to Request for Coverage Liability insurance, especially liability insurance with high limits, is a temptation for every plaintiff and defendant, even state governments. In State of New Jersey and New Jersey Department … Continue reading

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The Best Defense Is an Offense

Affirmative Defense Does Not Translate Into A Suit For Damages When an insurer is sued for breach of contract and bad faith it presents a thorough and extensive defense. When the insurer learns, through discovery, that its insured perpetrated a … Continue reading

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Zalma’s Insurance Fraud Letter – June 15, 2016

Zalma’s Insurance Fraud Letter  June 15, 2016 Murder for Insurance Fraud Zalma’s Insurance Fraud Letter – June 15, 2016, Volume 20, No. 12   I will be speaking at America’s Claims Event in Minneapolis on June 23, 2016 and will … Continue reading

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Ventura Loses Judgment Because of Improper Comments by His Counsel

Sniper Lost Right to Fair Trial By Argument He was Insured People buy insurance to protect against their own negligence. However, the courts have recognized for many years, that mention of the existence of liability insurance to pay for defense … Continue reading

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Consolidation of Tort & Insurance Action Inherently Prejudicial to Insurer

Never Shall the Liability Insured & Insurer Meet in Suit Brought by Tort Plaintiff Since insurers are not popular in the minds of the general public tort plaintiffs will often try to bring an insurer into a tort action to … Continue reading

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Pay Premium or Lose Coverage

No Contractual Right to Reinstatement Insurance is a based on the terms of the contract. It is not a right conferred upon persons by the U.S. Constitution. It requires the insured to keep certain promises made by the insured to … Continue reading

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Insured v. Insured Exclusion

Exclusion Applies Burden Falls on Insured to Prove Exception Appellate courts often write opinions that require a wheel barrow to carry. However, when a case gets to a straight-forward point an appellate court will fool the parties and the nation … Continue reading

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Exclusive Remedy of Workers’ Compensation

General Buys Workers’ Compensation Insurance for Sub-Contractor It is axiomatic, applied universally, that recovery of workers’ compensation benefits is the exclusive remedy of an employee covered by workers’ compensation insurance coverage against the employer or an employee of the employer. … Continue reading

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The First Annual Claims Magazine/ACE Legend Award

Honored for a 48 Year Love of Insurance Law Please visit http://www.propertycasualty360.com/2016/06/01/fraud-insurance-and-the-law-an-interview-with-barr where, although I was sworn to secrecy, it seems that Claims Magazine has issued the news in advance of the ACE Conference, you will understand why I was … Continue reading

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Staged Accident Results in Criminal Conviction

Lie to Insurer About Claim Go Directly to Jail Insurance fraud is a general intent crime. It is important to prosecute and convict those who stage an accident and then intentionally present a false claim to an insurer. Arguing against … Continue reading

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Ten Years & Still Litigating With Vigor

No Right to Read Opponent’s Litigation File Sometimes lawsuits live longer than the career of the judge assigned to hear it. Sometimes the lawsuit takes on a life of its own. In Genesis Insurance Company v. Magma Design Automation, Inc., … Continue reading

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Named Insured May Cancel a Policy At Any Time

Policy Cancelled Before Loss Disputes over cancellation of insurance policies usually center around cancellations by insurance companies. In Ged v. Select Portfolio Servicing, Inc., United States District Court, D. New Jersey, 2016 WL 3033683 (05/26/2016) the USDC was faced with … Continue reading

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Late Notice Defense Difficult to Prove

Notice Requirement Must be Clear & Unambiguous Every liability insurance policy contains a requirement that the insured report claims promptly. Each policy contains a variation on that requirement. Excess policies contain different reporting clauses than do primary policies. In Essex … Continue reading

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Zalma’s Insurance Fraud Letter – June 1, 2016

Arson for Profit     Zalma’s Insurance Fraud Letter June 1, 2016, Volume 20, No. 11 In this, the ninth issue of the 20th year of publication of Zalma’s Insurance Fraud Letter (ZIFL), Barry Zalma, on June 1, 2016 continues … Continue reading

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