Archives: Coverage

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Is a Reinsurance Contract an Insurance Contract for Discovery Purposes?

Litigators know that in federal court initial disclosures are required. Under FRCP 26(a)(1)(A)(iv), parties must provide to the other side for inspection and copying “any insurance agreement under which an insurance business may be liable to satisfy all or part of a possible judgment in the action or to indemnify or reimburse for payments made … Continue Reading

New York Court of Appeals Reaffirms Contract Language Controls Allocation and Exhaustion Methodologies

Long-tail claims from asbestos and other toxic exposures have plagued policyholders and their insurers for decades. Myriad issues arise when trying to determine when injuries are incurred, how policies are triggered, how liability should be allocated among multiple policies and when excess policies are required to cover the losses. None of this is easy and … Continue Reading

The Wellington Agreement’s Confidentiality Provision Lives On

You remember the Wellington Agreement don’t you? This was the settlement agreement entered into back in 1985 to resolve numerous coverage disputes between Owens-Corning Fiberglass Corp. and its producers and insurers over pending asbestos litigation. Confidential arbitrations took place as part of the Wellington Agreement to resolve these coverage disputes. Much evidence was created as … Continue Reading

Construing Collapse Under a Homeowners’ Insurance Policy

Homeowners’ policies have become more complex as more and more homes have been built around the country. With the increase in natural and other disasters, including construction defect claims, homeowners have looked to their policies for coverage when disasters have destroyed or nearly destroyed their homes. A recent case highlights a couple of the issues … Continue Reading

Timing Is Everything for Late Notice In New York

Nearly every liability policy has a provision that requires the policyholder to notify the insurer promptly of any accident or incident that might become a claim and of any lawsuit or other claim filed against the policyholder by a claimant. And many of these notice provisions are couched in language that the courts have construed … Continue Reading

The Dichotomy Between Intent to Injure and Intentional Conduct

Most liability policies require that the claim arise from an accident or occurrence typically defined in a way that the accident or occurrence is a fortuitous event and not an intentional act. The typical automobile accident or slip and fall are accidents; nothing premeditated or planned, no intent to cause harm, no intent to drive … Continue Reading

OCIP and CCIP Policies and the Duty to Reimburse for Defense Costs

I have run across a number of interesting situations involving owner controlled or contractor controlled insurance programs (“OCIP” or “CCIP”) that have developed into actual coverage disputes or potential disputes (can’t talk about the potential one!). For those who don’t know, an owner controlled or contractor controlled insurance policy or program is essentially a way … Continue Reading

Judgment Based Partly on Florida Civil Theft Statute Neither Covered nor Insurable by Directors and Officers or Property Policies

A Florida federal court in Miami awarded D&O and property insurers summary judgment in a declaratory action, ruling in their favor on essentially every coverage issue, while also ruling that the damages for which their insured was found liable were uninsurable.  Twin City Fire Ins. Co. v. CR Technologies, Inc., 25 F.L.W.Fed. D113a (SDFL Mar. … Continue Reading
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