A prior post addressed Dickerson v. Lexington Ins. Co., 2008 U.S. App. LEXIS 26504 (5th Cir. Dec. 22, 2008), wherein the Fifth Circuit reversed its trend by issuing a Katrina-related decision in favor of the policy-holder. The Fifth Circuit recently upheld another decision in favor of policy-holders after Hurricane Katrina destroyed their home. See Grilletta
Katrina Canal Breaches Litigation Continues
In one of the major Hurricane Katrina-related decisions, In Re Katrina Canal Breaches Litigation, 495 F.3d 191 (5th Cir. 2007), the Fifth Circuit overturned the district court’s decision that flood exclusion is ambiguous. Hundreds of claims are still being litigated in the district court where an order was recently entered dismissing duplicate claims. See In
California Court Allows Stacking of Multiple Policies, Follows “All Sums” Rule
The California Court of Appeal recently issued an important case involving coverage for continuous property damage over several policy periods. Among its various rulings, the court held policy limits of multiple policies could be stacked. Further, the "all sums" rule, obligating each insurer to pay the entire claim, was applicable. See State of California v.
California Court of Appeal Affirms Bad Faith Ruling for Insurer’s Delays
The California Court of Appeal upheld a bad faith ruling based on the insurer's delay in paying benefits. See Major v. Western Home Ins. Co., 2009 Cal. App. LEXIS 4 (Cal. Ct. App. Jan. 6, 2009).
The insureds' home was destroyed by a wild fire in October 2003. They held a homeowners policy from
Regulating Insurance Companies in Hawaii
I was recently asked to look into investment and disclosure requirements for health insurance companies authorized to issue policies in Hawaii. A summary follows:
Hawaii Law
Investment requirements for all insurance companies are addressed in the Article VI of the Hawaii Insurance Code, Haw. Rev. Stat. §431:6-101-6-602. Generally, any security or other investment purchased by an insurer
Hawai`i Legislature’s Transfer of Assessments on Insurers to General Fund Violates Separation of Powers
Last April we reviewed the Hawai`i Intermediate Court of Appeals' (ICA) decision that the Insurance Commissioner's assessments against insurers were unconstitutional taxes. The Hawai`i Supreme Court recently affirmed in part, reversed in part. See Hawaii Insurers Council v. Lingle, 2008 Haw. LEXIS 287 (Haw. Dec. 18, 2008).
In 1999, the legislature created the Insurance
Hawai`i Supreme Court Reinstates Emotional Distress Claim Against Insurer
Although the insurer's conduct did not amount to bad faith in Young v. Allstate Ins. Co., 119 Haw. 403 (Haw. 2008), the court held plaintiff's allegations of intentional infliction of emotional distress (IIED) were sufficient to survive a motion to dismiss.
Plaintiff alleged she was stopped in traffic when a car operated by an
No Duty to Defend or Indemnify Where Initial Manifestation of Injury Predates Policy
Our last post summarized a Texas case (Byrne, Ltd. v. Trinity Universal Ins. Co., 2008 Tex. App. LEXIS 9041 (Tex. Ct. App. Dec. 4, 2008)), which held the insurer must defend where the underlying complaint is silent as to when the injury occurred. Today we shift gears and review a case favorable to insurers
Insurer Must Defend Where Underlying Complaint is Silent as to When Injury Occurred
The seminal Hawai`i case on injury in fact and trigger of coverage is Sentinel Ins. Co., Ltd. v. First Ins. Co. of Hawaii, Ltd. 76 Hawai`i 277, 875 P.2d 894 (1994), where the Hawai`i Supreme Court adopted the injury in fact trigger. Since Sentinel, however, the Hawai`i Supreme Court has not returned to the issue.
Court Awards Damages for Mental Anguish Based on Insurer’s Bad Faith
Interpreting Louisiana law, the Fifth Circuit determined that damages for mental anguish were properly awarded based on the insurer's bad faith. See Dickerson v. Lexington Ins. Co., 2008 WL 5295389 (5th Cir. Dec. 22, 2008).
The insured's home was extensively damaged by Hurricane Katrina. He held a homeowner's policy issued by Lexington. The insured