Burke’s Law News

New York Court Reverses Decision in K2 Investment Group

The Court of Appeals of New York recently revisited its decision in K2 Inv. Group, LLC v. American Guar. & Liab. Ins. Co., reversing its prior ruling and finding that an insurer that breaches its duty to defend is not …

Iowa Court Says Third-Party Beneficiary Bound by Policy Limitations

The Iowa Supreme Court recently held that a third-party beneficiary is granted no greater rights under an insurance policy and is bound by the same limitations as the policyholder. In Osmic v. Nationwide Agribusiness Ins. Co., No. 12-1295 (Iowa Jan. …

Recent Decisions Limit Recovery From State Guaranty Funds

Two recent decisions have clarified the applicability and limitations of coverage available from state insurance guaranty funds. Guaranty funds are designed to protect insureds when an insurer becomes insolvent and is unable to pay claims, but the obligations of guaranty …

Seventh Circuit Says Replacement Cost Claim Survives Sale of Property

The Seventh Circuit Court of Appeals recently held that a claim for replacement costs under a property insurance policy survives the insured’s sale of the damaged property. In Edgewood Manor Apartment Homes, LLC v. RSUI Indem. Co., 2013 U.S. App. …

Sixth Circuit Highlights the Importance of Policy Definitions

In one of the more unusual cases interpreting terms of an insurance policy, the Sixth Circuit Court of Appeals has highlighted the importance of policy definitions. In Bennett v. State Farm Mut. Auto Ins. Co., 2013 U.S. App. LEXIS 19494, …

Florida Clarifies That Extrinsic Evidence May Not Be Used to Resolve Policy Ambiguities

The Florida Supreme Court recently issued an important decision on the use of extrinsic evidence to resolve ambiguities in policy language. In Wash. Nat’l Ins. Co. v. Ruderman, No. SC12-323 (Fla. Jul. 3, 2013), the Florida Supreme Court answered a …

New York Insurers Breaching Duty to Defend May Not Assert Policy Exclusions

The New York Court of Appeals has reaffirmed the importance of the insurer’s duty to defend its insureds, holding that when an insurer breaches its duty to defend, it may not rely on exclusions in the policy to avoid coverage …

The Insurer’s Duty to Provide Independent Counsel in Illinois

Illinois law requires insurers to provide independent counsel for their insured when a conflict of interest arises. The duty developed from balancing the insurer’s obligation to defend the insured with the ethical obligations of appointed attorneys, and is firmly grounded …

The Insurer’s Duty to Provide Independent Counsel in California

This is part one of a three part series focusing on an insurer’s duty to provide independent counsel in Alaska, California and Illinois. Under liability insurance policies, an insurer has a duty to indemnify the insured for loss as well …

Court Determines Priority of Coverage Where Employer is Vicariously Liable

A California appellate court recently clarified the priority of coverage where multiple insurers are implicated for the acts of a negligent employee. In GuideOne Mutual Insurance Company v. Utica National Insurance Group, 2013 Cal. App. LEXIS 148, the court held …