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Government Investigations Can Constitute Covered “Claims”—and Require Notice—Under Liability Insurance Policies

By Michael T. Sharkey This commentary examines recent court decisions around the country that have held that subpoenas and other forms of government investigations are “claims” triggering coverage under various types of liability insurance policies. Decisions upholding the broad definition...

Real Cases in Real Estate By Andrea Lee Negroni, Esq. – February 7, 2014 Update

Updates for the Week of February 7, 2014 When all tax sale notices addressed to the property owner are returned “undeliverable,” due process requires the county to notify “occupant” at the property address . Terry Holton bought a condominium in Kansas City (Jackson County...

10th Circuit Certifies Late Notice and Reporting Questions to Colorado Supreme Court

In its recent decision in Craft v. Philadelphia Indem. Ins. Co ., 2014 U.S. App. LEXIS 2680 (Feb. 11, 2014), [ enhanced version available to lexis.com subscribers ], the United States Court of Appeals for the Tenth Circuit, applying Colorado law, had occasion to consider whether Colorado’s notice...

Life Insurance Remedies: May a Living Insured Recover Damages for an Insurer's Failure to Provide a Required Grace Period Notice?

In Life Insurance Remedies: May a Living Insured Recover Damages for an Insurer’s Failure to Provide a Required Grace Period Notice?, by Michael P. Cunningham of Funk & Bolton, P.A., the author notes that most attorneys practicing in the area of life insurance have likely encountered cases...

Noticeable Confusion - "Claims Made" Policies, Late Notice, And When Your Insurer Must Prove Prejudice To Avoid Coverage

By John E. Heintz, John A. Gibbons, and Omid Safa An adverse claim is an unwelcome surprise to any business, particularly those unaccustomed to being sued. A lawsuit is unsettling and brings with it a litany of pressing litigation concerns, which compound the already significant day-to-day burdens...

D&O and Professional Liability 2013 - A Year In Review

Troutman Sanders is pleased to announce the release of 2013 | A Year In Review . This free annual publication by the Insurance Section highlights many of the key decisions delivered in 2013 by courts in nearly every jurisdiction of the country regarding a number of topics of significance to D&O and...

Maryland Court Holds Prejudice Rule Applies to Claims Made and Reported Policy

In its recent decision in Navigators Specialty Ins. Co. v. Med. Benefits Administrators of Maryland , 2014 U.S. Dist. LEXIS 22631 [ enhanced version available to lexis.com subscribers ], the United States District Court for the District of Maryland had occasion to consider whether Maryland Code §...

CA9 on Credibility, Notice, Evidence: Zhi v. Holder

"Petitioner Ai Jun Zhi, a Chinese citizen, petitions for review of the denial of his application for asylum and withholding of removal. As we explain below, one of the bases for the immigration judge’s (“IJ”) adverse credibility determination is not supported by substantial evidence...

WV Department of Insurance Clarifies Requirements for Issuing Delay Letters

By Chelsea V. Prince, Associate The West Virginia Insurance Commissioner recently issued Informational Letter No. 189 which interprets and clarifies those portions of the W.Va. Code of State Rules requiring delay letters during the investigation of a claim. Per the Commissioner, delay letters are...

The Importance of Proof of Mailing: If Premium Not Paid, Policy Cancelled

Insurance is, by definition, a contract whereby the insurer, for consideration, agrees to defend or indemnify another against a contingent or unknown risk. For an insurance policy to exist, therefore, the person insured must pay the premium (the consideration) charged by the insurer. States, like Florida...

Enforcement Actions Filed Against Real Estate Firms For Alleged RESPA Inadequate Notice and Kickback Violations

On May 28 th , the CFPB entered into a consent order with the largest real estate firm in Alabama to settle allegations that the real estate firm provided consumers with inadequate notices. The CFPB alleged that the real estate firm violated the Real Estate Settlement and Practices Act (RESPA) by failing...

Loan Servicer Properly Identified as Party with Authority To Negotiate Mortgage Terms in Foreclosure Notice, Georgia Court Holds

A recent decision by the Georgia Court of Appeals helps to add further clarity to the state’s foreclosure notice statute. The statute, which was amended in 2008, requires that the written notice of a foreclosure sale “shall include the name, address, and telephone number of the individual...

Oops, Insurer’s Poorly Drafted Language Applied As Written; Double Oops, Insured Can’t Complain When New York Law is Applied After It Chose to Reject Missouri Tax

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP An insured under an errors and omissions policy gives timely notice of circumstances during the policy period in effect when it first became aware of its potential civil liability. The E&O insurer acknowledges notice. Many years later...

Insurer Required to Show Prejudice Because the Reporting Requirement in the Policy Conditions Did Not Transform the Claims-Made Policy Into a Claims-Made-and-Reported Policy

NewLife Scis. LLC v. Landmark Am. Ins. Co. , 2014 U.S. Dist. LEXIS 21469 (N.D. Cal. Feb. 18, 2014), [ enhanced version available to lexis.com subscribers ]. In NewLife Sciences , the district court held that the notice-prejudice rule was applicable to a policy that had a condition requiring claims...

Federal: Illinois Employer May Not Require Notice Prior to Medical Treatment

The Illinois Workers’ Compensation Act grants an injured worker the right to seek medical care prior to notifying the employer of the workplace injury or condition, even where the employer has a known employment policy regarding such notification, held an Illinois court. Accordingly, an employer’s...

Broker May Be on the Hook for Insured’s Failure to Provide Timely Notice Of a $5M Claim

When an insured is denied coverage for a claim it is not unusual for someone to suggest that the fault lies with the insured’s broker for its failure to have obtained it. [On one hand, broker liability cases are not true coverage cases. On the other hand, they are nothing short of coverage cases...

Pennsylvania Amends Mechanics’ Lien Law to Create New Notice Procedures and Requirements

By James D. Miller, Esq. On October 14, 2014, Governor Tom Corbett signed into law Act No. 142 (the “Act”), [ enhanced version available to lexis.com subscribers ], amending the Pennsylvania Mechanics’ Lien Law, 49 P.S. 1101 et seq., [ enhanced version available to lexis.com subscribers...

CA5 on Notice: Barrios-Cantarero v. Holder

"The BIA committed legal error by determining that Barrios-Cantarero was properly given notice through a letter addressed to Adrian Eliseo and therefore abused its discretion by denying his motion to reopen. ... Here, the BIA failed to apply 8 C.F.R. § 103.8(a)(1)(i) in determining whether...

Report Promptly, Sue Quickly or Else – Private Limitations of Action Provision Enforceable

First-party property insurance policies always include a prompt reporting requirement and a private limitations of action provision. Even if the claim is reported promptly once it is denied the insured should never sit on his/her/its rights before filing suit ignoring the private limitation of action...

Is that Covered? Reservation of Rights Letter

By Michael R. Kelley If your client is sued, one immediate task is to determine if there is insurance coverage for the claim(s). If you submit the claim to an insurance company, Pennsylvania law requires that it acknowledge receipt of the claim promptly, and that the insurer either accept or deny...

DOL Notice: H-2A Allowable Charges

"The Employment and Training Administration (ETA) of the Department of Labor (Department) is issuing this Notice to announce (1) the allowable charges for 2015 that employers seeking H–2A workers may charge their workers when the employer provides three meals a day, and (2) the maximum travel...

Defective 150 Day Cure Notice No Defense To Foreclosure

Distressed Homeowners Take Another Hit In another court ruling against embattled homeowners facing foreclosure, the Massachusetts Appeals Court has ruled that a defective 150 day cure notice is not a valid defense to a foreclosure sale. The case is Haskins v. Deutsche Bank , [ enhanced version...

Make Sure You're Covered - Report All Claims And Potential Claims

By Ashley Moss Professional liability insurance carriers require their insureds to report claims timely as a condition to coverage. This is especially important at the time for renewal of insurance coverage, when the carrier will ask about knowledge of any claims or potential claims. Professionals...

Court Holds That a Coinsurer’s Notice of a Claim Brought Against a Mutual Insured Qualified as a Valid Tender Despite Policy Provision Requiring the Insured Itself to Provide Notice

Millennium Labs., Inc. v. Darwin Select Ins. Co., 2014 U.S. Dist. LEXIS 170439 (S.D. Cal. Dec. 9, 2014) , [ enhanced version available to lexis.com subscribers ]. In Millennium , the Southern District of California rejected an insurer’s argument that because a notice letter was sent from a coinsurer—rather...