Monthly Archives: November 2016

Pyrolysis Is Continuing and Progressive Property Damage in California

Potential for Coverage Requires Defense Refusing to defend an insured sued for a potentially covered loss is often fraught with danger for the insurer. The insurer who refuses a defense under California law must have every fact and issue pinned … Continue reading

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Rescission for Multiple Lies Granted

Purportedly Innocent Insured Can’t Recover from Policy Acquired by Fraud The covenant of good faith and fair dealing applies equally to the person insured as it does to the insurer. When a person obtains insurance by means of a material … Continue reading

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Parties Are Free To Contract

Litigation Because of a Failure to Insure Cancellation of an insurance policy requires in Missouri, and most state, requires sufficient notice set by statute, if an insurer cancels. However, the policy terms and conditions allow the insured to cancel the … Continue reading

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Insurance Broker’s Duty is Limited to Obtaining Coverage Requested

Absent Special Relationship Insurance Broker Has No Obligation to Recommend Coverage New York appellate courts are noted for the brevity of their opinions and this case is a prime example. In Moutafis Motors, Ltd. v. MRW Group, Inc., — N.Y.S.3d … Continue reading

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Insurance is not Health Care

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A Stranger To An Insurance Policy Has No Right To Recover on The Policy

Plaintiff’s Damages Must Be Adjudicated Before Coverage is Resolved In a major lawsuit most plaintiffs do not wish to litigate if there is no possibility of collecting on a judgment. The existence of insurance relieves the concern about collecting on … Continue reading

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To Claim a Latent Ambiguity Opinion Evidence is Insufficient

15 Years of Litigation Resolved As a recovering lawyer I understand the need to earn fees to keep the law firm going. I understand that a single lengthy litigation concerning multiple millions of dollars can keep a law firm going. … Continue reading

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Happy Thanksgiving

I am Thankful that The Reports of My Retirement Are Greatly Exaggerated. For reasons unknown to me some people think I am retired. I have only retired from the practice of law. I am still, at 74, thankful that I … Continue reading

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When The Court Reads Entire Policy Justice is Done

Entire Policy Must Make Sense to be Enforced When billions of dollars are in dispute insurance litigation is inevitable. When an insured decides it is entitled to more money than the insurer believes it agreed to pay suit will always … Continue reading

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Self-Insurance is Not Insurance

State of Louisiana Punished for Frivolous Appeal Because insurance for the liability of a municipality is exceedingly expensive many municipalities are permissibly self-insured. Self insurance is not insurance but merely a promise to be financially responsible for torts. Insurance regulations … Continue reading

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Mutual Mistake Supports Reformation

Insurance Intended Rather than Issued Most people who buy insurance are ignorant of the intricacies of insurance and insurance law. They err when buying insurance. The people buying insurance are seldom aware that insurance is a contract of personal indemnity … Continue reading

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Surety is Not An Insurer

Can a Surety Be Required to Pay Bad Faith Tort Damages?  A Surety look like an insurer, walks like an insurer, has the right to settle claims like an insurer, but is not an insurer. It is a special kind … Continue reading

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When Evidence of Fraud & Arson is Clear Conviction Stands

Zalma’s Insurance Fraud Letter — November 15, 2016 Every Insurance Adjuster Must Be Trained About Fraud In the last 49 years that I have been in the business of insurance I have learned the one thing that is a certainty: … Continue reading

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Agent That Failed to Acquire Insurance Ordered Liable to Insured

Not Wise to Take A Verdict From Jury I just received a policy of insurance from my broker that showed the insured to be BZ, Inc. Although a nice shorthand, it was not proper since the true corporate name is … Continue reading

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UIM Limitations-on-Liability Provision Enforced

You Only Get What You Pay For Underinsured Motorist Insurance (UIM) is not a panacea for people who are injured beyond the limits of their UIM cover. When an insured buys a minimum limit of coverage on his UIM policy … Continue reading

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The Amoral Public Adjuster

Public adjusters, like personal injury lawyers, work on a contingency fee. For a percentage of the recovery, they present claims on behalf of insureds to insurance companies. Like personal injury lawyers, some are honest and some are not. The public … Continue reading

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Negligent Removal of Natural Resources is an Occurrence

Coverage Available for Removing Coal From Plaintiff’s Property Liability insurance insures against a third party’s loss if the person insured fortuitously (accidentally) causes damage to the third party’s property. The Court of Appeals of Kentucky was faced with an unusual … Continue reading

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Burden Is On Insurer To Prove Non-Coverage

An Insurer Does Not Lose The Right to Assert Non-Coverage After Wrongfully Refusing to Defend Liability insurance policies agree to provide a defense even if there is no possibility of the plaintiff obtaining damages against the insured that are covered, … Continue reading

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There Must Be a Causal Relationship With Vehicle and Injury

No Coverage For Trip & Fall After Exiting Vehicle and Walking to Destination Automobile liability insurance only applies to torts that occur as a result of the use the automobile. Commercial liability insurance policies usually exclude injuries resulting from the … Continue reading

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Waiver Of Subrogation Can Defeat Tort Suit

Defendant Has Right to Assert Waiver of Subrogation as Defense When a person enters into a commercial lease he or she signs a multi-page document that is even less read than insurance contracts. On important clause in the commercial lease … Continue reading

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Insurer Fulfills Obligation When It Provides Insurance Requested

Attempt to Create Class Action Fails Because No Wrongdoing Lawyers search out class action cases because they believe a successful class action will generate enormous fees. However, to succeed in a class action, like dealing with any lawsuit, the plaintiff … Continue reading

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Appeal of Criminal Conviction for Insurance Fraud Wastes Court’s Time

When Evidence is Clear Conviction Stands When a person burns down a tenement house – a place where the government pays the rent for poor people – to get an insurance company to pay to make it new for old, … Continue reading

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How Not To Commit Arson

A Heads I Win, Tails You Lose Story Most people do not understand how hard it is to set fire to a house that destroys the entire dwelling and its contents. Most residences simply do not have sufficient combustibles in … Continue reading

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Increase in Insurance Coverage Used to Prove Damages

Value of Stolen Personal Property Established The amount of insurance a person purchases to protect against the loss of that property is an indicator of its true value but not what an insurer will pay. Some policies limit the value … Continue reading

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Zalma’s Insurance Fraud Letter – November 1, 2016

What A Fraud Trained Adjuster Must Understand   Every Insurance Adjuster Must Be Trained About Fraud  In the last 49 years that I have been in the business of insurance I have learned the one thing that is a certainty: … Continue reading

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