declaratory judgment News

Insurer Paid Claim to Avoid Bad Faith; Reimbursed Because of Misrepresentation

The 10th Circuit Court of Appeals endorsed a clever way for an insurer to avoid a bad faith claim where there were potential misrepresentations in the policy application. In Evanston Insurance Company v. Aminokit Labs, Inc., the court affirmed a …

9th Circuit Finds Carrier Not Liable to Defend in Sexual Abuse Case

A federal appellate court reversed a ruling that would have forced a homeowner’s insurer to pay up to $300,000 in damages to a woman who had been sexually abused by its policyholder, despite exclusions in the policy for intentional acts. …

Insurer Says it Shouldn’t Have to Pay for Mississippi Building Collapse

An insurer says it shouldn’t have to pay for the collapse of a building in a southwest Mississippi city. Hudson Specialty Insurance has sued in federal court in Natchez to nullify its policy, saying the policy was voided after the …

Ohio Homeowner Charged With Murder, Arson Declined EUO

Court records filed in June show a property owner, recently charged with murder and aggravated arson, declined to cooperate with an insurance company investigation of his claim for a house fire that resulted in an Ohio firefighter’s death nearly a …

Axis Insurance Denies Coverage for Tony Stewart in Ward Race Car Death

Axis Insurance says the lawsuit brought against racing star Tony Stewart, whose car struck and killed another racer during a New York event in 2014, is not covered by the insurance policies it issued for Stewart. Axis maintains that its …

Right to Intervention Upheld by Montana Supreme Court

In Abbey/Land, LLC v. Interstate Mechanical, Inc., 378 Mont. 372, 345 P.3d 1032 (2015), the Court held that an insurance company has the right under Montana law to intervene in order to present its arguments and evidence concerning the reasonableness …

A Little Knowledge Goes A Long Way Against Defense and Indemnity Reimbursement

When faced with a mixed complaint against the insured, including covered and uncovered claims, insurers oftentimes will reserve their right to seek reimbursement for defense and indemnification payments attributable to the uncovered portion of the claim. The question of reimbursement …

It’s a Fine Line: Interpreting Status-Based Exclusions

Insurance companies and their adjusting staff are well aware of basic policy interpretive rules. When determining whether the insurance company has a duty to defend a tendered complaint, the rules are stacked against the insurance company, and in favor of …