LexisNexis® Legal Newsroom
Perkins Coie LLP on Denial of Coverage to Direct Action Statute Claimant for Failing to Report the Claim to the Insurer During the Policy Period Provides Reason to Review Notice Rules and Pertinent Recent Developments

By Stephen M. Feldman and Nicholas P. Gellert, Attorneys, Perkins Coie LLP Although the case arose within the unique framework of Louisiana's Direct Action Statute and was said to be an issue undecided by the Louisiana Supreme Court requiring an " Erie guess," the Fifth Circuit's...

Pay a Million for Nothing: Sufficient Notice of Premium Due

Cash Surrender Value Life Insurance On Old Person Not a Bargain Conseco Life Insurance Company’s predecessor issued a flexible premium life insurance policy to Johnston & Johnston on the life of Mary Ann D. Johnston in 1988. The Policy’s cash surrender value dropped below zero dollars...

Extended Reporting Period Held to Apply Only to Claims First Made During That Period and Not Claims Made During the Original Policy Period

PCCP, LLC v. Endurance Am. Specialty Ins. Co. , 2013 U.S. Dist. LEXIS 114400 (N.D. Cal. Aug. 13, 2013) [ enhanced version available to lexis.com subscribers ] PCCP, LLC v. Endurance American Specialty Insurance Co. concerned the interpretation of an Automatic Extended Reporting Provision (“AERP”...

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...

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 §...

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...

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...

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...

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...

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...

Virginia Federal Court Sustains Late Notice Disclaimer

In its recent decision in E Dillon & Co. v. Travelers Cas. & Sur. Co. of America , 2015 U.S. Dist. LEXIS 76295 (W.D. Va. June 12, 2015), [ enhanced version available to lexis.com subscribers ], the United States District Court for the Western District of Virginia, applying Virginia law, had occasion...

There’s Been No “Tender” – Does Insurer Still Need To Respond?

We’ve all seen this issue. You are handling a claim for a certain insured, and in the course of doing so, you obtain information that another involved person or entity is also an insured and may have rights under the policy. But here’s the rub – this other person or entity has never...

Fifth Circuit Holds Insurer Waived One-Year Reporting Requirement in Pollution Buy-Back Endorsement

In its recent decision in Cox Operating, L.L.C. v. St. Paul Surplus Lines Ins. Co., 2015 U.S. App. LEXIS 13318 (5 th Cir. July 30, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the United States Court of Appeals for the Fifth Circuit, applying Texas...

New Jersey Court Holds Demand Letter Is A Claim

In its recent decision in Innes v. St. Paul Fire & Marine Ins. Co ., 2015 U.S. Dist. LEXIS 121753, [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], (D.N.J. Sept. 11, 2015), the United States District Court for the District of New Jersey had occasion to consider...

Supreme Court Addresses Really, Really Late Notice: Like, After Settlement

Tapas: Small Dishes of Insurance Coverage News & Notes An insured settled a case and then gave notice to its insurer. As you may expect, the Supreme Court of Nebraska in Rent-A-Roofer, Inc. v. Farm Bureau Property & Casualty Ins. Co., No. S-14-895 (Neb. Sept. 11, 2015), [subscribers can access...

New York Court Holds Disclaimer Letter Untimely

In its recent decision in Endurance American Specialty Ins. Co. v. Utica First Ins. Co ., 2015 N.Y. App. Div. LEXIS 7272 (N.Y. 1 st Dep’t Oct. 8, 2015), [subscribers can access an enhanced version of this opinion: lexis.com | Lexis Advance ], the New York Appellate Division, First Department, reinforced...

Very Significant Duty To Defend Case: If You Read Only One Article In This Issue Of Coverage Opinions….

If you read only one article in this issue of Coverage Opinions, make it the one about my webinar – “The Definitive Reservation of Rights Checklist: 50 Things That Every ROR Needs.” If you read two, make this one the other. There have been a lot of cases over the past few years,...