Employment Practices Liability Insurance – New Appleman on Insurance Law Library Edition, Chapter 28

By L.D. Simmons, II and Lowndes C. Quinlan, Attorneys, McGuireWoods LLP This chapter begins by discussing the development and brief history of Employment Practices Liability (“EPL”) policies, as well as the law that has so far developed interpreting these policies. Insurers have developed...

Nevada Supreme Court Finds An Earth Movement Exclusion Ambiguous, by Bullivant Houser Bailey PC

By Andrew B. Downs and Kristol Bradley Ginapp, Attorneys, Bullivant Houser Bailey PC The Nevada Supreme Court recently held that a property insurance policy's earth movement exclusion was ambiguous because, unlike some other earth movement exclusions, it did not state clearly whether it applied...

CGL Exclusion for Injuries to Children Ambiguous in Florida

By Barry Zalma, Attorney and Consultant The most difficult task faced by an underwriter, and those representing underwriters, is to write insurance policy provisions in clear and unambiguous language. It has become even more difficult when the underwriter is required to use language that is "easy...

Policy Limits Are Policy Limits – The Policy Says Only What It Says

By Barry Zalma, Attorney and Consultant Just because, after an accident, an insured wishes he had higher policy limits does not mean the insured can change the language of a policy. That does not stop them from trying. In Paul Davis and Sarah K. Davis v. Travelers Property Casualty Company of America...

McCarter & English on Eighth Circuit Affirms Summary Judgment in Favor of Reinsured Concluding the Reinsurance Agreement Unambiguously Requires the Reinsurer to Follow the Settlements

By Cynthia Morrison, Associate, McCarter & English, LLP "Reinsurance, as a specialized industry, utilizes unique terms that are often the subject of disputes between the reinsurer and reinsured. One unique term is the 'follow the fortunes' doctrine which is interpreted, generally...

Nevada Supreme Court Rejects Use of Constructive Notice for Claims Made and Reported Policy

By Andrew B. Downs, Shareholder, Bullivant Houser Bailey PC Court enforces plain language of Professional Liability Policy issued to Dentist In a well-reasoned and lucid opinion, the Nevada Supreme Court held a professional liability insurer's knowledge that its policyholder dentist had become...

An Apple Can Never Be An Orange – Regular Use Exclusion Effective

By Barry Zalma, Attorney and Consultant Erie Insurance Exchange ("Erie") appealed to the Superior Court of Pennsylvania from the grant of summary judgment in favor of Patrick and Daryl Rother ("Mother") in a declaratory judgment action involving the applicability of the regularly...

SNR Denton LLP on Pedicini v. Life Insurance Co. of Alabama: Insurer Acted in Bad Faith by Refusing To Recognize Ambiguity of Policy Language

By William T. Barker & Ronald D. Kent, Partners, SNR Denton In Pedicini v. Life Insurance Co. of Alabama, 682 F.3d 522 (6th Cir. 2012), the Sixth Circuit held that the relevant language in a medical insurance policy was ambiguous and further held that the insurer had acted in bad faith by refusing...

Wasteful Litigation – Failure To Read Policy No Excuse

By Barry Zalma, Attorney and Consultant Insurance is, and has always been a contract. In modern practice insurance policies are written in easy to read language that requires nothing more than a fourth grade education to understand. Regardless, the public still believes they are difficult to read...

Bullivant Houser Bailey: California Court Rejects Declination Regardless of Insured's Breach of Proof of Loss and Notice Requirements

By Jess B. Millikan , Shareholder, Bullivant Houser Bailey PC Once again, insurers are reminded that California courts may not enforce clear and plain language in their contracts. While California courts frequently recognize that insurance policies are contracts, they also frequently "pick...

Illinois’ Broad Duty to Defend Rule Is Put to the Test, and Prevails, for Now: Philadelphia Indemnity Insurance Co. v. Chicago Title Insurance Co.

By David Rosenfield, Attorney, Reed Smith LLP Illinois and numerous other jurisdictions adhere to the long-standing rule that if an insurer has a duty to defend a single count in a multi-count complaint, then it has a duty to defend the entire complaint. When an insurer recently tried to avoid...

Contra Proferentem – Not Always: When In Doubt – Rule Against the Insurer

The doctrine of contra proferentem , which ordinarily guides courts to interpret ambiguous insurance contract language against the insurer-drafter and in favor of finding coverage for the insured policy holder, does not always apply. However, in a coverage dispute between two insurance companies the...

Property Policy Covers Equipment in Temporary Storage Facility

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP In Amera-Seiki Corporation v. Cincinnati Insurance Company , No. 12-2739 (07/23/2013), [ enhanced version available to lexis.com subscribers ], the Eighth Circuit put Cincinnati Insurance Company to the test of explaining why coverage...

California Clarifies Scope of Reasonable Expectations for Additional Insureds

Insurance policies often insure persons or entities other than the named insured, often because the named insured is obligated to obtain insurance to protect those other persons. In California, when a policy provision is ambiguous because it is susceptible to more than one reasonable interpretation,...

Words of Policy Control over Secret Intent of Insurer: Policy Must Be Read as a Whole

Cheerleading is, by some measures, the second most dangerous college sport in the country. Cheerleading trails only football in terms of the total dollar value of catastrophic injury insurance claims submitted to the NCAA’s insurers. The injuries result from both competition and practice sessions...