Flood Insurance Reform Act of 2012 Amendments to Flood Disaster Protection Act

BallardSpahr@placeholder.com (Ballard Spahr LLP) — Wed, 17 Apr 2013 22:43:00 -0400

By the Ballard Spahr LLP Mortgage Banking Group

The federal banking agencies, together with the Farm Credit Administration, have issued joint guidance on amendments to the Flood Disaster Protection Act of 1973 (FDPA). The amendments were part of the Biggert-Waters Flood Insurance Reform Act of 2012 (Act), enacted on July 6, 2012. Participating in the guidance were the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the National Credit Union Administration.

In Financial Institution Letter 14-2013, the agencies state that the Act's increased penalties for FDPA violations

Title Insurer Underwriter Not Liable for Agent's Negligence Title Search

BallardSpahr@placeholder.com (Ballard Spahr LLP) — Fri, 08 Mar 2013 15:38:00 -0400

By Robert A. Scott

Perkins Coie LLP on Court Confirms $20M Settlement with Louisiana Citizens for Late Claim Payments After Hurricanes Katrina and Rita

PerkinsCoie@placeholder.com (Perkins Coie) — Mon, 25 Feb 2013 17:10:00 -0400

By Aaron D. Coombs, Associate, Perkins Coie LLP

District Judge Kern Reece of Orleans Parish, Louisiana, approved a $20 million class-action settlement with Louisiana Citizens Property Insurance Company on January 30, 2013, for claims related to the insurance company's alleged untimely payment of claims resulting from Hurricanes Katrina and Rita. The settlement in Orrill, et al. v. Louisiana Citizens Fair Plan, et al., No. 05-11720, Orleans Parish Dist. Ct. Div. L-6, should resolve one of several class actions that were filed against Citizens

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

BullivantHouserBaileyPC2@placeholder.com (Bullivant Houser Bailey PC) — Thu, 29 Nov 2012 18:28:00 -0400

By Jess B. Millikan, Shareholder, Bullivant Houser Bailey PC

SNR Denton US LLP on Miller v. Safeco Insurance Co. of Am.: Insurer May Not Enforce Exclusions in Newly Issued Property Insurance Policy If Insured Not Notified of Those Exclusions Before Discovering the Loss

wbarker@sonnenschein.com (William T. Barker) — Mon, 05 Nov 2012 14:12:00 -0400

By William T. Barker, Partner, SNR Denton LLP

The Millers purchased a home with severe preexisting water and mold damage which they and their home inspector failed to detect. In Miller v. Safeco Insurance Co of Am., the Seventh Circuit held that the loss had not manifested itself until after the policy took effect and that State Farm could not rely on exclusions in the policy because the Millers had not been notified of those exclusions before discovering the loss. This commentary criticizes that

Class Action Certified for Lender Requiring More Flood Insurance

zalma@zalma.com (Barry Zalma) — Tue, 02 Oct 2012 13:59:00 -0400

THE MISCHIEVIOUS CLASS ACTION

Home mortgage lenders are always concerned that their security is appropriately protected by insurance. As a result, by the terms and conditions, of the mortgage the lender keeps to itself the right to compel the borrower to buy sufficient insurance. In Stanley Kolbe v. Bac Home Loans Servicing, LP, D/B/A Bank of America, N.A, No. 11-2030 (1st Cir. 09/21/2012) the bank asked that the borrower, Stanley Kolbe ("Kolbe") and Susan Lass v. Bank of America, N.A., and Bac Home Loans Servicing, L.P, No. 11-2037 (1st Cir. 09/21/2012), increase the amount of flood insurance he carried by the amount of $46,000. Kolbe did not allege, and the record is devoid of facts that show how much additional

Jing on Insurance Coverage for Construction Defects: Developments in Federal & State Law

Tue, 11 Sep 2012 19:25:00 -0400

Jing on Insurance Coverage for Construction Defects: Recent Developments in Federal and State Law by Audrey J. Jing of Kelley, Drye & Warren LLP examines the current split among jurisdictions as to whether a claim for defective workmanship falls within the scope of the standard form insuring agreement, i.e. whether such a claim can allege "property damage" caused by an "occurrence" under a CGL policy. The commentary analyzes court decisions from a number of jurisdictions that hold that damage resulting from faulty workmanship may be accidental or fortuitous, and thus may be caused by an "occurrence." It also analyzes court decisions from other jurisdictions which find that defective workmanship can never result in property damage deemed unintended or accidental, and thus, cannot trigger coverage. The commentary

Ensuing Loss Provisions, Efficient Proximate Cause Rule, and Definition of Collapse Addressed by WA Supreme Court

BullivantHouserBaileyPC2@placeholder.com (Bullivant Houser Bailey PC) — Tue, 19 Jun 2012 13:01:00 -0400

By Jerret E. Sale,

McKenna Long & Aldridge LLP On A Roadmap For Determining Coverage For Construction Defect Claims In New York

Mon, 23 Apr 2012 09:57:00 -0400

By Richard B. Friedman, J. Stephen Berry, and P. Michael Freed, Attorneys, McKenna Long & Aldridge LLP

In their commentary, McKenna Long & Aldridge LLP on a Roadmap for Determining Coverage for Construction Defect Claims in New York, by Richard B. Friedman, J. Stephen Berry and P. Michael Freed observe that New York law makes it difficult for general

Don't Expect Your Homeowner's Insurance To Cover Pollution When You Lease Your Back Yard to Shale Gas Fracking Drillers

tclarke@rmkb.com (Thomas H. Clarke, Jr.) — Fri, 16 Mar 2012 11:51:00 -0400

Ropers Majeski Kohn & Bentley partners Thomas Clarke and Dean Pappas have published an informative article by Best's Review (February 2012) that looks at the potential risks that arise from hydrofracking operations, and the extent to which a typical homeowner's insurance policy covers the damages and harms that may arise. Homeowners and their insurance agents proceed at their peril if they expect insurance coverage when pollution from drilling spills over to the neighbor's property. Read or download this timely article, Under Cover: Do Homeowner Policies Protect Against Liability

McCarter & English LLP on New Jersey Appellate Division Opens Door to Coverage for Subcontractors' Defective Work

Sun, 04 Mar 2012 12:45:00 -0400

By Craig W. Davis and Nicholas M. Insua, Attorneys, McCarter & English, LLP

A recent decision by New Jersey's Appellate Division questions the continued viability of prior New Jersey decisional law regarding whether property damage caused by faulty construction constitutes an "occurrence" for purposes of commercial general liability ("CGL") coverage. The court in

McCarter & English LLP on Chinese Drywall Litigation and Insurance Coverage

Tue, 17 Jan 2012 13:43:00 -0400

By Nicholas Insua, Jason Alexander & Michael Smith, Attorneys, McCarter & English, LLP

In their commentary, "Update: Chinese Drywall Litigation Continues," Nicholas Insua, Jason Alexander & Michael Smith of McCarter & English, LLP, first note that the housing boom of the mid-2000s created a shortage of American-manufactured drywall. Builders filled the

Faulty Workmanship is Not an “Occurrence” But the Damage it Does Is an Occurrence

zalma@zalma.com (Barry Zalma) — Wed, 11 Jan 2012 11:46:00 -0400

By Barry Zalma, Attorney and Consultant

The Wisconsin Court of Appeal was called upon to resolve a dispute that arose out of damages suffered by VPP Group, LLC the grew from construction work being performed by contractors on a building owned by VPP. VPP was insured by Acuity. Acuity paid the damage claims filed by VPP arising out

Evaluating First-Party Property Claims with Multiple Causes Under the Efficient Proximate Cause Doctrine

Tue, 27 Dec 2011 15:50:00 -0400

By Susan J. Field and Rina Carmel, Attorneys, Musick, Peeler & Garrett LLP

In "Evaluating First-Party Property Claims with Multiple Causes Under the Efficient Proximate Cause Doctrine," appearing in the November/December 2011 issue of Coverage, Susan J. Field and Rina Carmel of Musick, Peeler & Garrett LLP in Los Angeles initially note that for a claim to be covered by first-party

Sweet Defective-Home Alabama: Supreme Court Addresses The “Occurrence” Issue

maniloffr@whiteandwilliams.com (Randy J. Maniloff) — Mon, 14 Nov 2011 12:52:00 -0400

"Sub-Contractor" Exception Applies - But Not To A Sub-Contractor's Own Work

Randy J. Maniloff, White and Williams, LLP

Last month I was in

Sweet Carolina For Policyholders: Good Times Will Never Seem So Good For Construction Defect Claims

maniloffr@whiteandwilliams.com (Randy J. Maniloff) — Thu, 27 Oct 2011 13:53:00 -0400

South Carolina Supreme Court Withdraws Crossmann Communities and Allows Coverage for Consequential Damages of Construction Defects - Court Adopts Time on the Risk Allocation

Randy J. Maniloff, White and Williams, LLP

Continuous Trigger: The ShamWow of Coverage Issues – Sucking Insurers Dry of Much More Than Would Seem Possible

maniloffr@whiteandwilliams.com (Randy J. Maniloff) — Mon, 17 Oct 2011 16:53:00 -0400

Federal Court Rejects Continuous Trigger for Construction Defects

Randy J. Maniloff, White and Williams, LLP

We've all had a waiter

Bullivant Secures Jury Verdict, Court Awards Judgment under Counterclaim for First-Party Insurance Fraud

BullivantHouserBaileyPC2@placeholder.com (Bullivant Houser Bailey PC) — Mon, 03 Oct 2011 17:49:00 -0400

By John A. Bennett, Stuart D. Jones, Matthew E. Hedberg, Andrew E. Passmore, Attorneys, Bullivant Houser Bailey PC

Following a two-month trial, Safeco Insurance Company of Oregon

LexisNexis® Insurance Law Community Podcast: Selena J. Linde on Hurricane Irene Insurance Coverage Issues

Tue, 30 Aug 2011 13:00:00 -0400

On this edition, Selena J. Linde of Perkins Coie in Washington, D.C. discusses insurance claims arising from Hurricane Irene. She reviews business interruption and contingent business interruption claims, differences between flood and hurricane damage and steps companies should take to maximize recovery.

Readers can obtain find additional resources on hurricane and flood insurance coverage and free downloads at Insurance Implications in the Wake of Hurricane Irene

Insurance Implications in the Wake of Hurricane Irene

Mon, 29 Aug 2011 17:39:00 -0400

After Hurricane Irene, individuals and businesses will face property losses and interruption of business and will look to insurers for coverage of these multi-faceted losses. To remain up-to-date on the coverage issues raised by Hurricane Irene and similar natural events, we invite our Community to access the following resources (some that are specific to states directly impacted by the Hurricane, such as New Jersey and New York):

MATTHEW BENDER PUBLICATIONS

By Barry Zalma, Attorney and Consultant

Insurance Is

Insurance is a contract where a person (the insurer) agrees to indemnify another (the insured) against certain defined risks of loss, damage, or liability

Michigan Court Holds No Coverage Under Successive UST Policies

bmargolies@traublieberman.com (Brian Margolies) — Fri, 22 Jul 2011 16:27:00 -0400

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP

In its recent decision Webb Operating Co. v. Zurich American Ins. Co., 2011 U.S. Dist

The Problem of Mutual Benefit Insurance

zalma@zalma.com (Barry Zalma) — Thu, 07 Jul 2011 14:26:00 -0400

By Barry Zalma, Attorney and Consultant

When a person leases a portion of a structure with multiple tenants it is usual for the landlord to promise to buy property insurance to protect the entire structure and make, as part of the rent charged, the tenant pay a ratable portion of the insurance. When, due to the negligence of the tenant the property is damaged by fire, the insurer will pay the named insured and then attempt to recover

Bullivant Secures Jury Verdict, Court Awards Judgment under Counterclaim for First-Party Insurance Fraud

LexisNexis® Insurance Law Community Podcast: Selena J. Linde on Hurricane Irene Insurance Coverage Issues

Insurance Implications in the Wake of Hurricane Irene

Michigan Court Holds No Coverage Under Successive UST Policies

The Problem of Mutual Benefit Insurance

Insurance Law Community Property Insurance

Massachusetts Rejects “In For One, In for All” Theory in Title Insurance Coverage

Insurer Need Only Respond to Risk It Agreed to Insure

Flood Insurance Reform Act of 2012 Amendments to Flood Disaster Protection Act

Title Insurer Underwriter Not Liable for Agent's Negligence Title Search

Perkins Coie LLP on Court Confirms $20M Settlement with Louisiana Citizens for Late Claim Payments After Hurricanes Katrina and Rita

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

SNR Denton US LLP on Miller v. Safeco Insurance Co. of Am.: Insurer May Not Enforce Exclusions in Newly Issued Property Insurance Policy If Insured Not Notified of Those Exclusions Before Discovering the Loss

Class Action Certified for Lender Requiring More Flood Insurance

Jing on Insurance Coverage for Construction Defects: Developments in Federal & State Law

Ensuing Loss Provisions, Efficient Proximate Cause Rule, and Definition of Collapse Addressed by WA Supreme Court

McKenna Long & Aldridge LLP On A Roadmap For Determining Coverage For Construction Defect Claims In New York

Don't Expect Your Homeowner's Insurance To Cover Pollution When You Lease Your Back Yard to Shale Gas Fracking Drillers

McCarter & English LLP on New Jersey Appellate Division Opens Door to Coverage for Subcontractors' Defective Work

McCarter & English LLP on Chinese Drywall Litigation and Insurance Coverage

Faulty Workmanship is Not an “Occurrence” But the Damage it Does Is an Occurrence

Evaluating First-Party Property Claims with Multiple Causes Under the Efficient Proximate Cause Doctrine

Sweet Defective-Home Alabama: Supreme Court Addresses The “Occurrence” Issue

Sweet Carolina For Policyholders: Good Times Will Never Seem So Good For Construction Defect Claims

Continuous Trigger: The ShamWow of Coverage Issues – Sucking Insurers Dry of Much More Than Would Seem Possible