Monthly Archives: March 2017

Excess Insurer May Not Unilaterally Refuse Reasonable Settlement

Insured and Primary Policy May Settle When Excess Refuses to Participate Excess insurers often do not like the decisions of a primary insurer and an insured that would require payment by the excess insurer to effect a settlement. The state … Continue reading

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Insured Only Allowed One Appraisal

Insured’s Post-Appraisal Estimate Cannot Be Considered An appraisal is a contractual obligation in a first party property policy that allows the insured and insurer to resolve the amount of loss when the insured and insurer cannot agree.  When an insured … Continue reading

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Rescission by Default in Bermuda Not Binding

Comity Not Available Rescission of an insurance policy is appropriate if the policy was acquired by a misrepresentation or concealment of material fact. However, when a plaintiff is damaged by a default judgment of rescission in a foreign jurisdiction without … Continue reading

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A Court May Not Make Language of Policy Nugatory

Avoiding Making Worthless Excess Policy Language Liability insurance can be primary or excess. When multiple policies of insurance apply to a loss disputes over who owes what to the insured and in what proportion brings about litigation that resembles an … Continue reading

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City Cannot Compel Police Officers to Buy Primary Insurance

Municipality May Not Preempt State Law Police officers have a difficult and dangerous job. They should be honored for their service not punished by the citizens of the city where they live and work. In an attempt at a wild … Continue reading

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For Want of a Word In Policy Insurer Loses

Hit and Run Driver Who Forces One Vehicle into Another Allows for UM Coverage Uninsured motorist (UM) coverage covers injuries caused by a phantom vehicle that causes injury and runs from the scene – a classic hit-and-run accident. Because of … Continue reading

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Court Improperly Lets Parties to Change a Battery to Negligence

An Assault or Battery Away from Auto Does Not Arise Out of Use of Auto Automobile liability coverage requires that for coverage to apply injuries to a third party must result from the use of the automobile. Unlike broad liability … Continue reading

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Injuries Resulting from Intentional Acts Not an Occurrence

No Benefits for Deliberate Acts Resulting in Injury The USCA for the Ninth Circuit – contrary to its often stated court of reversal – wrote a clear, unambiguous, appropriate and proper decision that was even more brief than decisions from … Continue reading

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Zalma’s Insurance Fraud Letter – March 15, 2017

Zalma’s Insurance Fraud Letter Criminal Intent Proved by Circumstantial Evidence Zalma’s Insurance Fraud Letter, Volume 21, No. 6 Every Insurance Adjuster Must Be Trained About Fraud In the last 49 years that I have been in the business of insurance … Continue reading

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Broker is Not Agent of Insurer

Binder is Only Temporary Insurance Insurance companies issue binders to provide temporary coverage to a potential insured. They are not insurance policies but only evidence that, if certain conditions are met, a policy will be issued. Many contain conditions requiring … Continue reading

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If you Don’t Read Policy at Least Read Notice

Pretending to Be Ignorant Does Not Toll Statute of Limitations In my experience, and in the experience of the Supreme Court of Rhode Island, no one reads insurance policies. Even professionals, whether physicians or lawyers, fail to read the policy. … Continue reading

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No Coverage to Replace Defective Work

Settlement Agreement Contrary to Its Intent Eliminated Coverage As I have opined in these pages taking an assignment from a tortfeasor to get the right to sue an insurer is not a wise or profitable course of action. Although insurance … Continue reading

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FRAUD AND THE TORT OF BAD FAITH

How To Stop Fraud Insurance fraud is more often than not, successful. No one knows how much is taken by insurance fraud perpetrators from the insurance industry. It has been estimated to take as little as $80 billion to as … Continue reading

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What is Insurance?

Easy to Read & Understand Insurance policies are contracts. To form a contract an insurer must make an offer that is accepted by a potential insured who then pays consideration – premiums – for the promises made by the insurer. … Continue reading

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Private Limitation of Action Enforced in Oregon

Insurer’s Consistent Requirement that Insured Follow Policy Conditions Honored Insurance contracts – to protect against stale claims – contain a private limitation of action provision that requires filing of suit within a set period of time, usually one or two … Continue reading

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“Arises Out Of” is Unambiguous

Ninth Circuit Supports Clear and Unambiguous Exclusion Although the Ninth Circuit has been called the court of reversal it also will often write clear decisions that make logical and legal sense. Therefore, when a contractor sued its insurance company for … Continue reading

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Criminal Intent Proved by Circumstantial Evidence

36 Months in Jail For Fraudulently Taking $19.9 Million From Medicare Defrauding the United States of America has become a popular sport and profit center for those health care providers that disposed of their moral and ethical compass. It is … Continue reading

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Insured Can’t Pass Its Mistake to the Broker

Insurance Broker Sued for Doing What the Insured Asked It to Do The primary duty of an insurance agent or broker is to fulfill the orders presented to the agent or broker by the insured. If it errs in fulfilling … Continue reading

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Zalma’s Insurance Fraud Letter – March 1, 2017

Some Interesting and Important Words Zalma’s Insurance Fraud Letter, Volume 21, No. 5  The Current Issue Contains the Following heck in every day for a case summary at http://zalma.com/blog Some Interesting and Important Words Illumeo Continuing Education California SIU Regulations … Continue reading

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