The previous year saw a number of important cases interpreting and developing the application of the attorney-client privilege and the work-product doctrine in the context of insurance claims. Insurers and insureds consistently assert and challenge these protections in coverage disputes, …
Agents’ errors and omissions (E&O) policies provide protection for agents for certain negligent acts committed in their professional capacity but may exclude coverage for liability related to an insurer’s insolvency. These “insolvency exclusions” typically exclude coverage if the agent places …
With the South Dakota Supreme Court’s decision in Wheeler v. Farmers Mut. Ins. Co. of Neb., 2012 S.D. 83, the state joined a number of other states in invalidating “owned-but-not-insured” exclusions in uninsured motorist policies. The court held that South …
A California court of appeals recently determined that a proof of loss condition in a first party insurance policy is subject to the notice-prejudice rule. According to the decision, an insurer cannot avoid its coverage obligations due to a policyholder’s …
The Supreme Court of Ohio recently held that defective construction is not an “occurrence” covered under a commercial general liability policy. The decision clarifies an issue on which lower appellate courts had been split, but the court’s broad ruling was …
Two recent circuit court decisions affirmed that national flood insurance policies are to be strictly construed and are not subject to the flexible standards applied to private insurance policies. The National Flood Insurance Program (NFIP) was created because the private …
One of the first lawsuits implicating insurance coverage for a fracking-related claim is under way in Ohio. Warren Drilling Co., Inc. v. ACE American Ins. Co., No. 2:12-cv-425 (S.D. Ohio 2012) will be the first case to determine how insurance …
A New York appellate court recently issued one of the more interesting policy interpretation decisions, highlighting the importance of clearly drafted policies and exhibiting the well-settled principle that any ambiguity in a policy should be construed liberally in favor of …
The Georgia Supreme Court recently faced the question of whether an insured could be compensated by its insurer for both the cost of repair and the diminution in value of damaged real property. The issue was one of first impression …
For uninsured motorist coverage to apply, vehicle liability policies provide that the injury to the insured must be “caused by accident and arise out of the ownership, maintenance, or use of an uninsured auto.” The “arising out of” clause defines …