The insured's property was damaged during Hurricane Katrina by wind, wind driven rain, flooding, storm surge and water in Jupiter v. Automobile Club Inter-Insurance Exchange, No. 07-1689, 2009 U.S. Dist. LEXIS 44083 May 26, 2009). Plaintiff recovered $225,500 from Allstate, its flood insurance carrier. The insured also held a homeowner's policy with Automobile Club
Ninth Circuit Affirms Reimbursement and Prejudgment Interest to Insurer
The Ninth Circuit recently affirmed the district court's decision granting reimbursement and prejudgment interest on amounts paid to the insured for defense and settlement pursuant to a reservation of rights. See Evanston Ins. Co. v. OEA, Inc., No. 07-15316 (9th Cir. May 21, 2009)[here].
OEA acquired a claims-made policy from Evanston Insurance Company in 1998. The
Hawai`i Court Upholds Medical Insurer’s Denial of Excluded Procedure
Whether coverage for an allogeneic stem-cell transplant ("allo-transplant") was properly denied by the insurer was at issue in Hawaii Medical Service Association v. Adams, No. 28899 (Haw. Ct. App. May 21, 2009) [here]. An allo-transplant, used to treat myeloma, involves the harvesting and transplanting of stem cells from a matched donor. "Myeloma" is
Waiving Stacked Coverage Continues When Additional Cars Added to Policy
Considering Pennsylvania law, the Third Circuit was asked whether the insured waived "stacked" UIM benefits in subsequent policies that listed additional automobiles? See State Auto Prop. & Cas. Ins. Co. v. Pro Design, P.C., No. 08-3006 (3rd Cir. May 12, 2009) [here]. In a result consistent with Hawai`i law, the Third Circuit held the initial
Insured’s and Insurer’s Prior Acts Constitute Admissions of Wind and Flood Damage
Senior Judge Senter from the Southern District of Mississippi continues to be on the front lines of the Katrina insurance coverage battles. In a case headed for trial, Judge Senter recently denied motions by both the insured and insurer attempting to establish estoppel on coverage issues. See Politz v. Nationwide Mut. Fire Ins. Co.
Business Auto Policy Does Not Extend to Independent Contractor’s Vehicle
In Union Standard Ins. Co. v. Hobbs Rental Corp., No. 07-2184 (10th Cir. May 5, 2009)[here], the court determined the insured's business auto policy did not cover vehicles owned and operated by an independent contractor.
The insured company rented oil drilling equipment. It hired an independent contractor to transport a "mud separator"
No Coverage Where Each Possible Efficient Proximate Cause Excluded
Coverage under a homeowners' policy was denied by State Farm when corrosion surrounding a nail driven through a pipe caused a leak and extensive water damage many years later. See Freedman v. State Farm Ins. Co., B202617 (Cal. Ct. App. May 5, 2009)[here]. The policy provided "all-risk" coverage, but excluded loss from:
Insured Cannot Claim Defense Costs Incurred Prior to Giving Notice of Claim
Determining the duty to defend does not arise until the insurer receives notice of a claim, the Indiana Supreme Court further found the insured has no right to pre-notice defense costs. Dreaded, Inc. v. St. Paul Guardian Ins. Co., No. 49S02-0805-CV-244, Ind. Sup. Ct. April 28, 2009) [here].
In November 2000, Dreaded received a letter from the
Construction Defects “Expected and Intended” Despite Insured’s Claim of Ignorance
Whether the insured had sufficient knowledge of a construction defect to justify the insurer's denial of coverage was the issue in Far Northwest Dev. Co., LLC v. Cmty. Ass'n of Underwriters of Am., Inc., Case. No. C-05-2134, 2009 U.S. Dist. LEXIS 34521 (W.D. Wa. April 22, 2009).
In the underlying case, the Homeowner's Association claimed Mr.
Coverage Denied for Subcontractor’s Defective Work
Coverage for a subcontractor's defective work was the issue presented in Westfield Ins. Co. v. Sheehan Constr. Co., No. 08-3463, 2009 U.S. App. LEXIS 9021 (7th Cir. April 29, 2009).
Moisture problems were found in a residential subdivision for which Sheehan was the general contractor. An investigation determined defective work by one of Sheehan's