Insurance Online : Background of a Coverage Lawyer

    Thanks to "Coverage Opinions" and Randy Maniloff, Esq. for a write-up on my background as a coverage lawyer and otherwise in the current edition. The piece is here.     "Coverage Opinions" is a free, monthly electronic newsletter covering recent insurance coverage opinions and other areas of interest to the insurance coverage community. More information here.

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : Assignment of Insured's Policy Ineffective

   An assignment of policy rights made before the policy was issued was ineffective. W. Alliance Bank v. Nat'l Union Fire Ins. Co., 2016 U.S. Dist. LEXIS 19936 (N.D. Cal. Feb. 18, 2016).    The bank issued a loan to Sorrento Networks, Inc. in 2011. As collateral, Sorrento gave the bank a continuing security interest in all of Sorrento's personal property, including its inventory, commercial tort claims and insurance proceeds. The loan agreement authorized the back to act on Sorrento's behalf in collecting any money owed to Sorrento and prosecuting any claims that Sorrento might have.    In 2012, National Union issued a commercial crime policy that named Sorrento as an insured. The policy provided $1 million of coverage for different forms of crime, including employee theft and theft of money and securities inside the premises. The policy included a non-assignment clause, which said that the insured's rights and duties under the policy could not be transferred without National Union's written consent.     In January 2014, Sorrento announced it was going out of business. Employees at a subsidiary were instructed to leave property in the premises. When the CEO arrived at the subsidiary's office a month later, all of the property was missing.     The bank then brought suit against National Union in its own name. National Union moved to dismiss. The court found that the bank could not sue as an assignee of Sorrento's benefits under the policy because Sorrento never assigned to the bank its contractual rights. Sorrento borrowed money from the bank in April 2011, over a year before the National Union policy took effect. Sorrento could not have assigned away its rights under a policy that it had not yet purchased.    Further, the non-assignment clause barred any assignment that took place before the loss occurred. This precluded Sorrento from assigning away its rights. A non-assignment clause was void only as to transfers that occurred after a loss happened. The purported assignment took place in 2011, years before Sorrento suffered the loss.     Therefore, the complaint was dismissed with leave to amend.    

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : Umbrella Policy Deemed Excess Over Pooled Self-Insurance

   The municipal league's argument that an umbrella policy should contribute to a settlement funded by a municipal risk-pooling organization failed before the Illinois Court of Appeal. Illinois Municipal League Risk Management Ass'n v. State Farm Fire and Casualty Co., 2016 Ill. App. LEXIS 45 (Ill. Ct. App. Feb.2, 2016).    Roel Valle, a city clerk for the Village of Lynwood, was insured under an umbrella policy issued by State Farm. Lynwood belonged to the Illinois Municipal League Risk Management Association (Association), a municipal risk-pooling organization.     Valle was involved in an accident while driving a car owned by Lynwood. The other driver sued Valle and Lynwood. Valle and Lynwood notified the Association and State Farm about the lawsuit. The Association defended and settled with the other driver for $5.8 million. State Farm did not assist in the defense and did not contribute to the settlement.     The Association, as subrogee of Valle and Lynwood, sued State Farm, alleging State Farm breached its contract by failing to contribute its policy limits to the settlement. Both parties moved for summary judgment.    The State Farm umbrella policy required Valle to purchase automobile liability insurance as a primary policy. The policy noted under its "Other Insurance" provision that "[t]he coverage provided by this policy is excess over all other insurance and self insurance." The Association's contract with Lynwood provided, Other Coverage or Insurance: If any other valid and collectible coverage, whether by commercial insurance, self-insurance or other funding mechanism, applicable to any loss or expense covered by the Association is available to the Members, the coverage afforded by the Association shall be in excess of and shall not contribute with such other coverage.     The trial court found that the Association, by contract, agreed to pay the liability of Lynwood and Valle, up to the contract limits of $8 million, and State Farm's umbrella policy provided coverage for the accident only if the liability exceeded $8 million. Because the underlying lawsuit settled for less than $8 million, the trial court held that State Farm owed the Association nothing.    The appellate court affirmed. An umbrella policy, in contrast to a primary policy that contains an other insurance clause, was recognized as providing unique and special coverage.The court construed the umbrella policy to provide insurance coverage only when the loss exceeded available limits of insurance and self-insurance, including pooled self-insurance.     State Farm's coverage was "excess over all other insurance and self insurance." Because the Association provided coverage for the accident by self-insurance, the Association provided coverage for the losses up to $8 million, and State Farm's policy would cover losses only in excess of that amount.     

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : State Data Breach Laws & Cyber Risk Insurance

State statutes dictate how an organization must respond to a data breach, and Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage) is typically structured to provide financial support for compliance with these Data Breach Laws. A summary of the laws is available on the BakerHostetler site here. Most states have passed laws setting out requirements for any organization which experiences a breach of personal information. While the regulations vary, most states define a breach and require some level of notice to both a responsible party, usually the Attorney General, and to potential victims. Importantly, these statutes generally apply to the location of the victim, not just the location of the organization. So a company doing...

Follow our page in Facebook "Insurance Online". from Specialty Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Damage to Plaintiffs' Home Caused By Unmoored Boats Survives Surface Water Exclusion

   The magistrate's recommended decision found that damage to plaintiffs' home caused by boats that became loose during Hurricane Sandy was not barred as  "water borne material" under the surface water exclusion. Spindler v. Great N. Ins. Co., 2016 U.S. Dist. LEXIS 16532 (E.D. N. Y. Feb. 2, 2016).    Plaintiffs' home abutted the East Bay. The property had an exterior deck and a long dock that floated on the bay. Hurricane Sandy damaged plaintiffs' home and dock. A neighbor witnessed two boats, driven by the storm, repeatedly strike plaintiffs' dock, house, and deck. There was no dispute that water infiltrated plaintiffs' yard prior to the entry of the boats. Plaintiffs spent $286,280 to repair damaged items from the storm.     Plaintiffs had an all risk-policy with Great Northern. The policy did not cover loss caused by flood. The surface water exclusion stated the policy did not cover "flood, surface water, tidal water, overflow of water from a body of water, or water borne material from any of these . . ." An ensuing loss provision stated, "but we do insure ensuing covered loss unless another exclusion applies."    Great Northern denied coverage and plaintiffs filed suit. Cross-motions for summary judgment were filed. Great Northern argued that the boats constituted "water borne material." The policy did not define the phrase. The court found that the usage of "water borne material" suggested that it referred to something other than marine conveyances. The use of "water borne material" commonly included "enter," back up," "discharge," "overflow" or "located in the ground," processes one would generally associate with materials such as sand, silt and sewage. Therefore, "water borne material" appeared to exclude fugitive sailing vessels.    Further, the policy had multiple provisions dealing with "watercraft," a term that plainly incorporated vessels like those that damaged plaintiffs' property. Having failed to clearly define "water borne material" as including watercraft, Great Northern's reliance on this language of the surface water exclusion was misplaced.    Next, Great Northern argued that, even if the "water borne material" language was inapplicable, the damage inflicted by the storm-driven vessels constituted damage from flood, and was therefore excluded. There was evidence, however, that the property was undamaged by flood waters. Instead, the damage was caused by the physical collision with the watercraft, a peril distinct and separate from flood, and therefore not specifically excluded by the surface water exclusion.     Finally, the ensuing loss provision rendered the question of coverage beyond doubt. Because damage caused by the boats followed the entry of water, the boat damage was an ensuing loss to property that was not excluded by the policy.       The district court subsequently overruled Great Northern's objections to the magistrate's recommended decision. Spindler v. Great N. Ins. Co., 2016 U.S. Dist. LEXIS 30255 (E.D. N. Y. March 9, 2016).

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : Sports Injury Insurance Gives Student-Athletes an Assist

The final seconds are ticking off the shot clock. The senior point guard drives down the lane hoping to get the shot and draw a foul to tie the game and potentially take the lead. When he goes up for the layup, he’s fouled and falls hard to the court. The arena goes silent, wondering how badly he’s been injured. The coaches and trainer run to his side to provide assistance. And joining them in spirit, if not in person, is an insurance agent.

Although very few college sports injuries are severe enough for surgery, many of them do require a level of treatment beyond bandages and braces. And when the subject turns to medical care, insurance coverage inevitably follows.

With the men’s and women’s National Collegiate Athletic Association (NCAA) basketball tournaments kicking off this month, several hundred student-athletes will be pushing their bodies to their limits. What happens to the ones who get injured? How does injury insurance work? And, perhaps most importantly, who pays for it?

The Basics of Student-Athlete Insurance

Insurance for college sports injuries differs from regular health care coverage. The NCAA calls it accident insurance, and it applies specifically to injuries and illnesses that take place while playing sports.

Colleges and universities must verify that their student-athletes have coverage for medical expenses before they can compete, or even practice. Coverage can be provided in one of three ways:

1. By the college or university. NCAA institutions have the option to provide coverage but aren’t required to.
2. By parents or guardians.
3. By the student-athletes themselves.

Student-athletes and families who purchase their own insurance coverage must bear in mind that regular medical insurance policies may exclude sports injuries. Fortunately, a number of companies can provide injury protection for college and high school athletes.

The NCAA has insurance coverage for big events such as March Madness, which can assist with medical expenses up to $90,000.

 

Special Cases and Elite-Level Athletes

What happens when injuries result in medical costs that exceed $90,000? In those cases, the NCAA Catastrophic Injury Insurance Program applies. This program, paid for entirely by the NCAA, can cover all student-athletes competing in special events, such as March Madness.

The NCAA’s catastrophic coverage can be implemented when serious injuries occur, such as an athlete becoming disabled and unable to compete. The coverage can have a maximum payout of $20 million, according to the NCAA, which can include funds for the student-athlete to complete his or her degree. The deductible for the catastrophic protection is set at $90,000.

When you think of injuries and March Madness, it’s nearly impossible to forget the horrific injury to Louisville guard Kevin Ware during the 2013 NCAA men’s basketball tournament. Ware was chasing down the ball during the Elite Eight game versus Duke when he sustained a compound fracture to his right tibia – causing the bone to snap and protrude through the skin. Ware was rushed into surgery, which consisted of resetting the bone and inserting a rod to act as a splint. After surgery, he spent time in the hospital so doctors could observe him and make sure he was on the road to recovery before starting the long road of rehabilitation.

With Ware’s injury, his family’s insurance policy, combined with Louisville’s, would only begin to cover the medical expenses. The NCAA’s supplemental coverage – in place for the tournament – stepped in to pay for the remainder, up to $90,000. Ware did not have to pay out of pocket for his medical needs.

What about college athletes with the potential to play at the professional level? The NCAA’s Exceptional Student-Athlete Disability Insurance Program can allow competitors in certain sports, including basketball, to purchase a disability insurance contract that could offer protection if an injury ended their chances of turning pro.

This disability coverage differs from “loss-of-value” insurance, which the NCAA does not provide. An elite athlete predicted to be a high draft pick can purchase a loss-of-value policy before becoming draft-eligible. This type of policy can come in handy if an athlete is significantly injured during his or her season and is either picked much later than projected prior to the injury, or the athlete decides to wait another year to enter the draft. The policy’s underwriters may be obligated to provide compensation if an injury substantially lowers the athlete’s position in the draft.

Some elite athletes who elect to stay in school past their draft eligibility purchase loss-of-value policies as a way to minimize risk. However, cases of former student-athletes collecting on loss-of-value claims are exceedingly rare.

Providing Coverage on the Court

When players take the court for the Big Dance this month, risking harm on the hardwood as they vie for glory, they can have peace of mind knowing their policies, any coverage provided by their respective schools and the NCAA’s protection can help pay for medical expenses that may be necessary in the event of an injury.

So as you enjoy college basketball’s biggest spectacle, remember the role that insurance plays in helping protect student-athletes, their dreams and their futures. You might even think of injury insurance as a “sixth man” — ready to come off the bench and contribute if needed.

Follow our page in Facebook "Insurance Online". from Home Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Sports Injury Insurance Gives Student-Athletes an Assist

The final seconds are ticking off the shot clock. The senior point guard drives down the lane hoping to get the shot and draw a foul to tie the game and potentially take the lead. When he goes up for the layup, he’s fouled and falls hard to the court. The arena goes silent, wondering how badly he’s been injured. The coaches and trainer run to his side to provide assistance. And joining them in spirit, if not in person, is an insurance agent.

Although very few college sports injuries are severe enough for surgery, many of them do require a level of treatment beyond bandages and braces. And when the subject turns to medical care, insurance coverage inevitably follows.

With the men’s and women’s National Collegiate Athletic Association (NCAA) basketball tournaments kicking off this month, several hundred student-athletes will be pushing their bodies to their limits. What happens to the ones who get injured? How does injury insurance work? And, perhaps most importantly, who pays for it?

The Basics of Student-Athlete Insurance

Insurance for college sports injuries differs from regular health care coverage. The NCAA calls it accident insurance, and it applies specifically to injuries and illnesses that take place while playing sports.

Colleges and universities must verify that their student-athletes have coverage for medical expenses before they can compete, or even practice. Coverage can be provided in one of three ways:

1. By the college or university. NCAA institutions have the option to provide coverage but aren’t required to.
2. By parents or guardians.
3. By the student-athletes themselves.

Student-athletes and families who purchase their own insurance coverage must bear in mind that regular medical insurance policies may exclude sports injuries. Fortunately, a number of companies can provide injury protection for college and high school athletes.

The NCAA has insurance coverage for big events such as March Madness, which can assist with medical expenses up to $90,000.

 

Special Cases and Elite-Level Athletes

What happens when injuries result in medical costs that exceed $90,000? In those cases, the NCAA Catastrophic Injury Insurance Program applies. This program, paid for entirely by the NCAA, can cover all student-athletes competing in special events, such as March Madness.

The NCAA’s catastrophic coverage can be implemented when serious injuries occur, such as an athlete becoming disabled and unable to compete. The coverage can have a maximum payout of $20 million, according to the NCAA, which can include funds for the student-athlete to complete his or her degree. The deductible for the catastrophic protection is set at $90,000.

When you think of injuries and March Madness, it’s nearly impossible to forget the horrific injury to Louisville guard Kevin Ware during the 2013 NCAA men’s basketball tournament. Ware was chasing down the ball during the Elite Eight game versus Duke when he sustained a compound fracture to his right tibia – causing the bone to snap and protrude through the skin. Ware was rushed into surgery, which consisted of resetting the bone and inserting a rod to act as a splint. After surgery, he spent time in the hospital so doctors could observe him and make sure he was on the road to recovery before starting the long road of rehabilitation.

With Ware’s injury, his family’s insurance policy, combined with Louisville’s, would only begin to cover the medical expenses. The NCAA’s supplemental coverage – in place for the tournament – stepped in to pay for the remainder, up to $90,000. Ware did not have to pay out of pocket for his medical needs.

What about college athletes with the potential to play at the professional level? The NCAA’s Exceptional Student-Athlete Disability Insurance Program can allow competitors in certain sports, including basketball, to purchase a disability insurance contract that could offer protection if an injury ended their chances of turning pro.

This disability coverage differs from “loss-of-value” insurance, which the NCAA does not provide. An elite athlete predicted to be a high draft pick can purchase a loss-of-value policy before becoming draft-eligible. This type of policy can come in handy if an athlete is significantly injured during his or her season and is either picked much later than projected prior to the injury, or the athlete decides to wait another year to enter the draft. The policy’s underwriters may be obligated to provide compensation if an injury substantially lowers the athlete’s position in the draft.

Some elite athletes who elect to stay in school past their draft eligibility purchase loss-of-value policies as a way to minimize risk. However, cases of former student-athletes collecting on loss-of-value claims are exceedingly rare.

Providing Coverage on the Court

When players take the court for the Big Dance this month, risking harm on the hardwood as they vie for glory, they can have peace of mind knowing their policies, any coverage provided by their respective schools and the NCAA’s protection can help pay for medical expenses that may be necessary in the event of an injury.

So as you enjoy college basketball’s biggest spectacle, remember the role that insurance plays in helping protect student-athletes, their dreams and their futures. You might even think of injury insurance as a “sixth man” — ready to come off the bench and contribute if needed.

Follow our page in Facebook "Insurance Online". from Home Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Policy's Plain Language Bars Business Interruption Coverage

   There was no coverage based upon the plain language of a contingent time element provision regarding business interruption coverage. Directv v. Factory Mut. Ins. Co., 2016 U.S. Dist. LEXIS 12320 (C.D. Cal. Feb. 1, 2016).     The insured, Directv. contracted with four companies to provide "set-top boxes" (STBs) or receivers, to pick up satellite signals that were transmitted to a subscriber's television. The four STB manufacturers used hard drive disks made by one of two companies, Western Digital Technologies, Inc. and Seagate Technology LLC. Directv did not purchase any hard drives directly from Seagate or Western Digital.     Monsoonal flooding in northern Thailand damaged two of Western Digital's hard drive manufacturing facilities. Although the flooding did not affect any of the four STB manufacturer's facilities, Directv alleged that the damage to the Western Digital facilities reduced the supply of hard drives. Directv further claimed that the resulting price increase in Western Digital hard drives, as well as the expense of obtaining substitute hard drives from Seagate, cost Directv approximately $22 million in losses and extra expense.    Directv's property insurance policy with Factory Mutual provided coverage for both property damage and time element, or business interruption, losses. Coverage was extended, including business interruption and extra expense coverage, beyond Directv's own property to certain "contingent time element locations." The policy's definition of such locations included any location "of a direct supplier, contract manufacturer or contract services provider to Directv."     Factory Mutual denied Directv's claim for contingent time element losses because Western Digital was not Directv's "direct supplier." Directv argued that, despite the lack of any contractual relationship between Directv and Western Digital, the latter was nevertheless a "direct supplier" because of the direct working relationship between the two.     The court disagreed with Directv. Directv argued that the phrase "direct supplier" should be defined according to its usage in the "electronics supply chain industry" based on the context of the policy and the parties' usage of the phrase. But Directv pointed to no evidence that the parties intended "direct supplier" to have some technical or industry-specific definition. While the policy defined many terms, such as "location," "occurrence," etc., not defining "direct supplier" anywhere in the policy suggested that the parties did not intend the term to carry any technical or specialized meaning.The ordinary meaning of "direct supplier" did not apply to a situation where Directv never received anything form Western Digital.

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : Cross Motions for Summary Judgment in Construction Defect Case Denied

   The court denied the insurer's and the contractor's cross motions for summary judgment. Core Construction Servs. Southeast v. Crum & Forster Specialty Ins. Co., 2016 U.S. Dist. LEXIS 11487 (M.D. Fla. Feb. 1, 2016).     Core Construction was the general contractor for the Artisan Club Condominium Community project. Core Construction hired a subcontractor to install windows at Artisan Club. The subcontractor was identified as "Dunn Lumber & Overhead Door Co.," but Core Construction contends that the subcontractor was The Dunn Corporation, which was doing business as Dunn Lumber & Overhead Door Co. The subcontract provided that Core Construction was to be named as "Additional Insured on your General Liability policy."    Dunn Corporation was insured under a CGL policy issued by Crum & Forster. The policy had a self-insured retention which provided that Crum & Forster's "Total limit of liability . . . shall apply in excess of the retained limit as stated in the endorsement, and the Named Insured agrees to assume this retained limit." The SIR amount was $250,000 per claim.    In October 2009, the Artisan Club Condominium Association sued Core for damages allegedly arising from the construction and sale of units at Artisan Club. Core Construction tendered to Crum & Forster, but coverage was denied. Core sued Crum & Forster. Both parties moved for summary judgment.    Crum & Forster first argued that Core Construction was not an additional insured because the entity it subcontracted with, Dunn Lumber & Overhead Door Co., was not an insured under the policy because it was not included in the endorsement's list of additional named insureds.    Core Construction argued that the other party to the subcontract was actually the Dunn Corporation, which was simply doing business under the fictitious name of Dunn Lumber & Overhead Door Co. The subcontract had been signed by an officer of the Dunn Corporation and a number of documents attached to the subcontract (such as a Form W-9) were signed by officers of the Dunn Corporation. The court found that the evidence produced by Core Construction as to the identity of the other party to the subcontract was enough to raise a genuine issue of material fact.     The court could not conclude, however, whether the $250,000 SIR had been satisfied. The SIR endorsement provided that Crum & Forster's obligation to defend or indemnify only arose when "the amount of the Self-Insured Retention has been exhausted by the insured's payment of damages or 'Claims Expense' that would be covered by this policy but for the application of the Self-Insured Retention." Without more information, the court could not determine whether the money spent by the other insurers was paid toward items that would have been covered by the CGL policy but for the application of the SIR. It was possible that the money was spent on litigation expenses related to work performed by other subcontractors, or by Core Construction directly, which did not appear to be covered by the CGL policy. 

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : EMV & Cyber Risk Insurance

The shift to credit cards embedded with chips and the related technology, called EMV, is already having an impact on Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance) underwriting and rating. Some Cyber Risk Insurance underwriters have increased their rates for retail organizations and some are underwriting accounts more closely. While EMV technology is expected to reduce point of sale credit card fraud, it is unclear when this will happen. Only a small percentage of retail merchants are fully using the new technology and those that are not face liability for any credit card fraud within their system. Cyber Risk underwriters are concerned that insurance may pick up claims for merchants that have not adopted the...

Follow our page in Facebook "Insurance Online". from Specialty Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Two Deductibles From Two Occurrences Equal No Benefits

   The Fifth Circuit found that two storms causing damage to a drilling rig constituted two occurrences, mandating payment of two deductibles. Seahawk Liquidating Trust v. Certain Underwriters at Lloyds London, 2016 U.S. App. LEXIS 871 (5th Cir. Jan 19,2016).    Seahawk's rig was three-legged, and rose from the seabed by jacking up of 375 foot-legs. In February 2010, while moving the rig, the Seahawk encountered severe weather and jacked up the rig out of the water for several days. Nevertheless, the rough seas caused the legs to become misaligned.     Between February and April, Seahawk repaired the hydraulic-jacking system on several occasions. In April, the rig was moved to perform another drilling contract. The legs were misaligned and the rig failed to jack up to a sufficient height to perform the contract. Seahawk had to provide a replacement rig at a cost of $1,092,000. Attempts were made to repair the original rig in dry dock. Seahawk learned the legs were misaligned but did not fix them because of the expense.    In July, the rig was used for another drilling contract after using an unorthodox method to jack it up - the rig was jacked up one side of the hull at a time, rather than jacking up the entire hull uniformly.     On July 21, 2010, the rig arrived to perform another drilling contract at East Cameron Island. The crew attempted to jack up the rig in rough seas, even though the operating manual forbade such a practice in the inclement weather. The rig because disengaged from the hull, and sustained further damage. After the July storm, the rig went into dry dock until December 2010 for further repairs.    Seahawk submitted a claim to its insurers for $16,969,860 for the cost of repairs. The claim was rejected and Seahawk filed suit. The district court determined that the claim was properly rejected because there were two occurrences, meaning two $10 million deductibles had to be met, so Seahawk could recover nothing.     The $10 million deductible provision read, "Each occurrence shall be treated separately, but it is agreed that a sequence of losses or damages arising from the same occurrence shall be treated as one occurrence." The district court reasoned there were two occurrences because the sequence of losses (the damages and subsequent repairs) between February and July was proximately caused by the February storm, but the sequence of losses after the July storm was proximately caused by that latter storm. There were two separate proximate causes of two different series of losses, making two occurrences.    On appeal, Seahawk argued that the February storm was an occurrence that damaged the rig's legs and was a but-for cause of the damages suffered after the July storm because the damaged legs slowed down the jacking-up process.Because the rig's damaged legs contributed to the damages after the July storm, all of the losses between February and December arose from the same February occurrence.    The insurers argued that any damages after the July storm arose from that storm, not the February storm. The phrase "arising from" required that the occurrence be the proximate cause of the "sequence of losses or damages." Even if the February storm damaged the legs and thereby contributed to the losses after July, the July storm would be the proximate cause of - and the occurrence giving rise to - the sequence of losses thereafter.    The Fifth Circuit agreed there were two occurrences. Evidence supported the determination that the July storm, not the February storm, was the proximate cause of the sequences of losses after July. For example, the misaligned legs caused by the February storm did not prevent the rig from jacking up in calm weather. Further, five months elapsed between the February and July storms, and although Seahawk knew of the misaligned legs for at least two months before the July storm, it did not repair the legs. Thus the July storm was an intervening and proximate cause of the losses, constituting a second occurrence.

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : This Morning's Seminar

From our presentation this morning at ABA's Insurance Coverage Litigation Committee's annual meeting in Tucson. Our panel addressed withdrawal of the duty to defend. My co- presenters were Rina Carmel, Demetrius Rush, and Karin Aldama. Sent from my iPhone

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : [No Title]

Sent from my iPhone

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online :

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo

Insurance Online : Don’t Rely on the Luck of the Irish: Make Sure Your Property is Protected on St. Patrick’s Day

St. Patrick’s Day is one of the most popular holidays in the United States, with roughly 97% of the population planning to celebrate each year, according to Survey Analytics and PR Newswire. Ranked as the second most popular drinking day of the year by Time magazine, the excessive alcohol consumption involved with the holiday’s festivities can result in poor decisions and questionable behavior by many of those who choose to celebrate.

Because this is one of the country’s wilder holidays, many people who live in cities known for raucous St. Patrick’s Day celebrations – think Savannah, Boston, Chicago – choose to rent out their residences for the weekend to make some extra cash. If you’re one of these residents and don’t have adequate insurance for mishaps that may ensue, getting covered as soon as possible is a must.

Protection for the unexpected

Short-term home rental services, such as Airbnb and VRBO, offer property protection that could help replace your wood floors in certain instances – such as your guests getting too inebriated and deciding to turn your hallway into a slip ‘n slide. Although this is an extreme scenario, you wouldn’t want to be caught without insurance if a renter damages your property. If additional coverage would make you feel more comfortable, consider adding an endorsement or rider – a separate policy that provides additional liability or another specified coverage – to your existing homeowners or renters policy for an extra layer of protection.

It’s better to be safe than sorry if you’re planning on opening your home to strangers. Crime, including theft and vandalism, spikes during this holiday. Keep all valuables in your home or car locked away and out of sight to deter thieves. You should also consider getting a floater policy to insure high-value items, as standard home insurance policies typically wouldn’t cover the replacement of expensive jewelry or works of art.

Most importantly, follow your instincts—if you’re feeling uneasy about a possible guest, chances are your gut is probably right. And if you live in one of the aforementioned cities that people flock to for St. Patrick’s Day, you can be picky about who stays in your residence for a few days.

If your town is a hotspot for St. Patrick’s Day festivities and you’d rather head out of town to avoid the inevitable drunk crowds and chaos, make sure your insurance can protect you no matter what traveling nightmare may be thrown your way. Purchasing travelers insurance may be a wise choice, as it can protect your assets, including your luggage and airline tickets, and may help you maintain peace of mind.

Planning on celebrating with a brew? Drink responsibly.

With 13 million pints of Guinness traditionally consumed during this Irish holiday, St. Paddy’s can be dangerous if participants are not committed to drinking responsibly. According to the National Highway Traffic Safety Administration, a total of 276 lives were lost in drunk driving crashes on St. Patrick’s Day from 2009 – 2013. What’s worse? Eighty percent of drivers involved in these collisions had a blood alcohol concentration (BAC) amounting to two times more than the legal limit (.08).

If you plan to celebrate St. Patrick’s Day by imbibing, please keep yourself and others safe by not getting behind the wheel under any circumstances. Instead, have a designated driver in place, call a cab or use a ride share service, such as Uber or Lyft. If you choose to drink and drive and are convicted of a DUI – even if you don’t harm another party – auto insurers will see you as a high risk. When you become a high-risk policyholder, you could see your premium costs increase tremendously – that is if your auto insurer is still willing to cover you.

May the road rise up to meet you, and may you always be properly insured.

The chaos of St. Patrick’s Day isn’t just limited to crime, vandalism or automobile-related incidents. When alcohol and large crowds are combined, mishaps can—and sometimes will—occur. Unless you’re confident you’ll find the proverbial pot of gold at the end of the rainbow this St. Patrick’s Day, you probably won’t want to pay out-of-pocket to cover any mishaps to your property.

Be sure to speak with your insurance provider to analyze your coverage and purchase additional protection if needed so you can travel, or simply celebrate, worry-free. Most importantly, may the blessing of the Irish be upon you, and may you have a memorable and safe holiday.

Sláinte!

Follow our page in Facebook "Insurance Online". from Home Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Don’t Rely on the Luck of the Irish: Make Sure Your Property is Protected on St. Patrick’s Day

St. Patrick’s Day is one of the most popular holidays in the United States, with roughly 97% of the population planning to celebrate each year, according to Survey Analytics and PR Newswire. Ranked as the second most popular drinking day of the year by Time magazine, the excessive alcohol consumption involved with the holiday’s festivities can result in poor decisions and questionable behavior by many of those who choose to celebrate.

Because this is one of the country’s wilder holidays, many people who live in cities known for raucous St. Patrick’s Day celebrations – think Savannah, Boston, Chicago – choose to rent out their residences for the weekend to make some extra cash. If you’re one of these residents and don’t have adequate insurance for mishaps that may ensue, getting covered as soon as possible is a must.

Protection for the unexpected

Short-term home rental services, such as Airbnb and VRBO, offer property protection that could help replace your wood floors in certain instances – such as your guests getting too inebriated and deciding to turn your hallway into a slip ‘n slide. Although this is an extreme scenario, you wouldn’t want to be caught without insurance if a renter damages your property. If additional coverage would make you feel more comfortable, consider adding an endorsement or rider – a separate policy that provides additional liability or another specified coverage – to your existing homeowners or renters policy for an extra layer of protection.

It’s better to be safe than sorry if you’re planning on opening your home to strangers. Crime, including theft and vandalism, spikes during this holiday. Keep all valuables in your home or car locked away and out of sight to deter thieves. You should also consider getting a floater policy to insure high-value items, as standard home insurance policies typically wouldn’t cover the replacement of expensive jewelry or works of art.

Most importantly, follow your instincts—if you’re feeling uneasy about a possible guest, chances are your gut is probably right. And if you live in one of the aforementioned cities that people flock to for St. Patrick’s Day, you can be picky about who stays in your residence for a few days.

If your town is a hotspot for St. Patrick’s Day festivities and you’d rather head out of town to avoid the inevitable drunk crowds and chaos, make sure your insurance can protect you no matter what traveling nightmare may be thrown your way. Purchasing travelers insurance may be a wise choice, as it can protect your assets, including your luggage and airline tickets, and may help you maintain peace of mind.

Planning on celebrating with a brew? Drink responsibly.

With 13 million pints of Guinness traditionally consumed during this Irish holiday, St. Paddy’s can be dangerous if participants are not committed to drinking responsibly. According to the National Highway Traffic Safety Administration, a total of 276 lives were lost in drunk driving crashes on St. Patrick’s Day from 2009 – 2013. What’s worse? Eighty percent of drivers involved in these collisions had a blood alcohol concentration (BAC) amounting to two times more than the legal limit (.08).

If you plan to celebrate St. Patrick’s Day by imbibing, please keep yourself and others safe by not getting behind the wheel under any circumstances. Instead, have a designated driver in place, call a cab or use a ride share service, such as Uber or Lyft. If you choose to drink and drive and are convicted of a DUI – even if you don’t harm another party – auto insurers will see you as a high risk. When you become a high-risk policyholder, you could see your premium costs increase tremendously – that is if your auto insurer is still willing to cover you.

May the road rise up to meet you, and may you always be properly insured.

The chaos of St. Patrick’s Day isn’t just limited to crime, vandalism or automobile-related incidents. When alcohol and large crowds are combined, mishaps can—and sometimes will—occur. Unless you’re confident you’ll find the proverbial pot of gold at the end of the rainbow this St. Patrick’s Day, you probably won’t want to pay out-of-pocket to cover any mishaps to your property.

Be sure to speak with your insurance provider to analyze your coverage and purchase additional protection if needed so you can travel, or simply celebrate, worry-free. Most importantly, may the blessing of the Irish be upon you, and may you have a memorable and safe holiday.

Sláinte!

Follow our page in Facebook "Insurance Online". from Home Insurance Blog

Read more.. bloggeradsenseo

Insurance Online : Bodily Injury and Property Damage Sufficiently Alleged to Invoke Duty to Defend

   The district court determined there was a duty to defend based upon allegations that the insured's pillows and mattresses emitted an odor causing bodily injury and property damage to the underlying plaintiffs. Hartford Fire Ins. Co. v. Tempur-Sealy Int'l, Inc., 2016 U.S.Dist. LEXIS 6706 (N.D. Cal. Jan. 20, 2016).    The insured faced a class action lawsuit, alleging it failed to inform consumers that its pillows and mattresses emitted an odor containing formaldehyde, a known human carcinogen. There were numerous allegations regarding injuries to persons and property suffered by purchasers of the insured's products.     Hartford denied coverage. It argued there was no duty to defend because the underlying complaint did not allege specific claims for bodily injury or property damage. According to Hartford, the duty to defend did not extend to any imaginable claim. The court disagreed. The underlying complaint contained 18 pages of allegations detailing the factual basis for a potential covered claim.      The exclusions relied upon by Hartford did not support its denial of a defense. While Exclusion k barred coverage for any property damage to the insured's products, i.e., the mattresses, the underlying complaint alleged extensive damage to property other than the insured's product. Exclusion m was also inapplicable. While property damage arising out of a defect or dangerous condition in "your product" was excluded, the exclusion did not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" after it was put to its intended use. The underlying complaint contained numerous allegations of loss of use of property due to the sudden and accidental odor produced by the insured's product.      Hartford also argued there was no occurrence because the insured knew its product was harmful, failed to disclose this fact, and misrepresented the safety of its products. But Hartford ignored the causal series of events leading to the damage sustained as a result of the insured's alleged misrepresentation. The underlying complaint did not provide a reason to think that the alleged mattress defects were expected by the insured. This was sufficient to demonstrate potential liability for an occurrence.

Follow our page in Facebook "Insurance Online". from Insurance Law Hawaii

Read more.. bloggeradsenseo