By Mark M. Hogewood, Member, Wallace, Jordan, Ratliff & Brandt, L.L.C. This chapter discusses the Garage Policy available to garage owners for their particular insurance needs and risks. As reflected in Section 68.01, the Garage Policy is geared toward the unique third-party liability exposure and first-party loss risks faced by car dealers, mechanics, vehicle service facilities, parking garages and other garage...

By Eileen Swarbrick, Attorney Chapter 67 provides an in-depth examination of insurance for the business-owned vehicle. The chapter examines the unique features of a business automobile policy, specifically the Insurance Services Office ("ISO") Business Automobile Coverage Form, that are designed to cover the property and liability risks associated with the use or ownership of business-owned vehicles. ...

By William T. Barker, Partner, SNR Denton The insurer's duty of good faith, and the liabilities that flow from breach of that duty, play an important role in insurance law. The duty was first developed in the context of liability insurance to limit the insurer's discretion in exercising its reserved control over settlement of claims against the insured. ( See Chapter 23 above.) But most jurisdictions have...

Editors of the New Appleman on Insurance Law Library Edition selected for new positions. • Professor Leo Martinez, of the University of California, Hastings College of the Law and Co-Editor of the New Appleman on Insurance Law Practice Guide has been chosen as President-Elect of the Association of American Law Schools. • Francis Jay Mootz, III, William S. Boyd Professor of Law of the William S. Boyd...

By Eileen Swarbrick, Attorney Chapter 66 provides an in-depth discussion of no-fault insurance law. No-fault insurance refers to insurance for which an insured is compensated for economic losses no matter who is at fault in an accident. No-fault coverage is strictly governed by the no-fault statute and therefore, the relevant statutory requirements are examined. No-fault statutes govern all aspects of coverage from...

By Jeffrey E. Thomas, Associate Dean and Professor of Law at the University of Missouri - Kansas City Uninsured and underinsured motorist insurance issues are among the most technical and complex in the area of automobile insurance. This chapter is intended to provide a framework for understanding the issues in this area and to be a resource for identifying key issues and initiating research in the area. It was written...

By Donald M. Carley, Associate General Counsel, State Farm Mutual Automobile Insurance Company Chapter 64 provides an overview of one of the most overlooked coverages in the personal automobile insurance contract - the medical payments coverage. The coverage was first introduced in the late 1930s and early 1940s to provide limited, no-fault medical payment benefits to those injured in an automobile-related accident...

By Lane Finch, Member, Hand Arendall LLC "The automobile is so much a part of American life that there are few activities in which the 'use of an automobile' does not play a part somewhere in the chain of events."[1] In 2009 there were more than 5.5 million police-reported motor vehicle crashes in the United States. Over 1.5 million of those resulted in injury and almost 31,000 accidents resulted...

By Andrew Janquitto, Partner, Mudd, Harrison & Burch, L.L.P Chapter 62 examines physical damage coverage for motor vehicles, which is a first-party insurance coverage designed to protect the insured vehicle from direct and accidental loss caused by a variety of transportation and non-transportation risks. Section 62.01 provides an introduction to the three types of physical damage coverages: collision, comprehensive...

By Christopher J. Robinette, Associate Professor at the Widener University School of Law Chapter 61 provides an overview of automobile insurance law in the United States, including many matters that will be covered in greater detail in subsequent chapters. The goal in this chapter is to orient the reader to the major components of, and issues concerning, automobile insurance. Section 61.01 sketches the history...

Both the New Appleman on Insurance Law Library Edition treatise and the New Appleman on Insurance: Current Critical Issues in Insurance Law current awareness quarterly were cited in a recent federal court decision. The case of Continental Casualty Co. v. Duckson, 2011 U.S. Dist. LEXIS 131566 (N.D. Ill. 2011) , involved the issue of whether the insurers had a duty to defend, pay "claim expenses," and/or indemnify...

The Winter 2011 issue of New Appleman on Insurance: Current Critical Issus in Insurance Law features three timely articles of significant importance: • The Supreme Court's 2011 Class Action Decisions: Their Impact on Insurance Class Actions • The Rise of U.S. Onshore Captive Domiciles: Is There Really Any Evil Lurking in an Emerging Shadow Industry? • Health Insurance at The Intersection...

The Fall 2011 issue of the New Appleman on Insurance; Current Critical Issues in Insurance Law quarterly features three articles on the cutting edge of insurance law: • On the Cusp of Change: the Intersection of Social Media and Insurance • An Overview of Seven State-Sponsored Property Insurance Programs • The Clash of Insurable Interest and the Evolving Secondary Life Insurance Market: The...

By Christine S. Davis, Lara D. Cassidy, David C. Mancini Chapter 51 provides an overview of the key terms, conditions, and insurance coverage issues associated with insurance policies providing coverage for boiler and machinery losses. The chapter first discusses coverage for boiler and machinery losses under traditional boiler and machinery policies. It also explains how coverage for boiler and machinery losses may...

By James P. Bobotek Chapter 50 provides an examination of builders risk insurance. A builders risk policy is a form of property insurance that covers the interest of owners, contractors, subcontractors, and others involved in a construction project. It insures them against the risks of property damage to the project. As a general rule, builders risk policies are intended to apply during the course of construction, erection...

By Joseph D. Jean, Rachel M. Wrightson, and Danielle C. Carmona This chapter discusses the contractual, equitable, and statutory subrogation rights that are available to insurers after they have paid a policyholder's claim for damages that were caused by a third-party tortfeasor. When an insurer pays a policyholder's claim, the insurer becomes subrogated to the rights of the policyholder. The insurer is thereby...

By Lon A. Berk and Michael S. Levine Chapter 48 provides a discussion of dispute resolution principles under first-party insurance contracts with a particular emphasis on the appraisal valuation process. Section 48.01 discusses generally the first-party recovery process and provides an overview of the initial steps of claim handling and investigation, or adjustment, following notice of loss. The Section then illustrates...

By Richard J. Cohen, Daniel W. Gerber, and Michael T. Glascott, Partners, Goldberg Segalla LLP Section 47.01[1] discusses the fact that policies that insure tangible property require direct physical loss or damage to the covered property during the policy period. This section explains that there are a number of different theories used for determining when the loss takes place. Section 47.01[2] explains the various...

By Bernard P. Bell, Partner, Jones Day Chapter 46 provides an analysis of time-element insurance generally, and business interruption insurance in particular. Section 46.01 sets out the general purpose of time element insurance. While standard first-party "all risks" property insurance policies cover the cost of rebuilding, repairing, or replacing property damaged by a covered peril, they do not cover the...

The Summer 2011 Issue of New Appleman on Insurance: Current Critical Issues in Insurance Law features three timely articles on the frontiers of insurance coverage disputes: Advice of Counsel and Insurance Bad Faith: Current Contours and Criticisms (by Douglas R. Richmond of Aon's Global Professions Practice) addresses an issue commonly faced by insurers. Insurers confronting claim-related and coverage-related...

On this edition, Kirk Pasich of Dickstein Shapiro in Los Angeles discusses topics addressed in New Appleman Sports and Entertainment Insurance Law & Practice Guide, of which he is the primary author. Mr. Pasich talks about the emergence of coverage for chronic traumatic encephalopathy, event cancellation/business interruption insurance, E&O media liability insurance, broker liability and coverage for invasion...

By Michael Raibman and Paul Walker-Bright, Attorneys, Reed Smith LLP This chapter describes the more common coverages that are added to basic property insurance policies. It further explores how courts have resolved disputes concerning these additional and supplemental coverage provisions. Section 45.01[1] discusses coverage for debris removal. Property insurance policies reimburse policyholders for the costs...

By Marc J. Shrake, Attorney Section 44.01 provides a framework for analyzing causation questions in property insurance policies. It acknowledges the brain-twisting nature of "causation" throughout history, encompassing not only philosophy and insurance law, but also the most common human dialogue. Section 44.01 narrows the causation issue for purposes of this chapter to property insurance policies as distinct...

By Rene L. Siemens, Vincent E. Morgan, Alyson R. Parker, Dawn M. Jenkins This chapter discusses exclusions that are often found in property insurance policies, with a particular emphasis on the All-Risk Form.[1] The All-Risk Form, which covers all causes of loss to property unless specifically excluded, has predominated in the property insurance market because of the benefits it provides to both insureds and insurers...

By John Garaffa, Kathy Maus and Julie Simonsen This chapter addresses the issues that can govern whether the loss or damage to particular property falls within the coverage provided by an insurance contract. As in a news story, the critical questions affecting coverage for loss or damage to property under an insurance policy are "who," "what," "where," "when," and "how."...