By Danielle Barondess on Posted in Notice of ClaimApplying New Jersey law, a federal district court has held that a specific entity exclusion in a claims-made policy barred coverage for a lawsuit filed against the excluded entity. JP Morgan Chase Bank, N.A. v. Scottsdale Ins. Co., 2019 WL 959698 (D.N.J. Feb. 27, 2019). The court also held that the insured complied with the… Continue Reading
By Ashley-Anne L. Criss on Posted in Notice of ClaimApplying Virginia law, the United States Court of Appeals for the Fourth Circuit has held that a Virginia statute imposing a forty-five day deadline for a coverage denial based on an insured’s breach of a liability policy does not apply to a denial based on a claim reported outside the policy period under a claims… Continue Reading
By Emily S. Hart on Posted in Notice of ClaimThe United States District Court for the Central District of California, applying California law, has held that coverage is unavailable for a whistleblower action and subpoena noticed after the end of the reporting period of a claims-made policy. PAMC, Ltd. v. Nat’l Union Fire Ins. Co. of Pittsburgh, PA, 2019 WL 666726 (C.D. Cal. Feb.… Continue Reading
By Emily S. Hart on Posted in Bad faith/duty to settle,Notice of ClaimThe Supreme Court of Delaware has held that under Delaware law, the three-year statute of limitations period applicable to a statutory bad faith action governed by Louisiana law commences when the insured could plead a prima facie case and was therefore barred. Homeland Ins. Co. of New York v. Corvel Corp., 2018 WL 6061261 (Del.… Continue Reading
By Emily S. Hart on Posted in Allocation,“Claim”,Notice of Claim,Wrongful ActThe United States District Court for the District of Rhode Island has concluded that a stockholder demand letter for legal expenses in connection with a dispute regarding the rights of different classes of stockholders constitutes a covered claim for a wrongful act. Twin River Worldwide Holdings, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh,… Continue Reading
By Nicole Audet Richardson on Posted in “Claim”,Notice of ClaimAn Illinois appellate court has held that a trial court properly awarded judgment to an insurer because it had no duty to defend or indemnify its insured under its claims-made-and-reported policy where notice of the underlying negligence lawsuit came in more than nine months after the policy was cancelled. Southwest Disabilities Services and Support v.… Continue Reading
By Hume Ross on Posted in Notice of ClaimThe United States Court of Appeals for the Eleventh Circuit, applying Georgia law, has held that mishandling of mail by an insured’s employee which led to noncompliance with a notice requirement in an insurance policy cannot, as a matter of law, excuse the noncompliance. Johnson & Bryan, Inc. v. Utica Mut. Ins. Co., 2018 WL… Continue Reading
By Edward R. Brown on Posted in Bankruptcy,Notice of ClaimThe United States Court of Appeals for the Third Circuit, applying Pennsylvania law, has held that an insured’s failure to provide timely notice of a claim under a claims-made policy barred coverage for that suit. Frazier v. Exide Techs., No. 17-2399, 2018 WL 2727396 (3d Cir. June 6, 2018).… Continue Reading
By Nathan Lovett on Posted in Notice of Claim,Related Claims and associated exclusionsThe Louisiana Court of Appeals has held that a claims-made policy affords coverage for a lawsuit filed before the policy period because an amended complaint alleging a new legal theory was filed during the policy period. Billeaudeau v. Opelousas Gen. Hosp. Auth., 2018 WL 1835510 (La. Ct. App. Apr. 18, 2018). The court also rejected… Continue Reading
By Bonnie Thompson on Posted in Notice of ClaimA Virginia federal court, applying Virginia law, has held that an insurer was entitled to summary judgment that no coverage was available under its claims made and reported policy for a claim noticed to it after the policy expired. Gateway Residences at Exch., LLC v. Illinois Union Ins. Co., 2018 WL 1629107 (E.D. Va. Apr.… Continue Reading
By Nathan Lovett on Posted in Notice of ClaimThe United States District Court for the Northern District of Georgia, applying Georgia law, has held that there is no coverage for multiple lawsuits under employment practices liability insurance policies where the insured failed to comply with the policies’ notice requirements. Nat’l Cas. Co. v. Fulton Cnty., Ga., 2018 WL 1523089 (N.D. Ga. Mar. 28,… Continue Reading
By Nathan Lovett on Posted in “Claim”,Notice of ClaimThe United States District Court for the Southern District of Mississippi has held that notice of an underlying accident sent to the insured’s three insurance carriers represented a timely “claim” under the claims-made general liability policies at issue in light of the insurers’ course of conduct upon receipt of the notice. Jordan v. Maxfield &… Continue Reading
By Margaret Thomas on Posted in “Claim”,Notice of ClaimThe United States District Court for the Middle District of Florida has held that an errors and omissions policy does not provide coverage for a criminal investigation of an insured individual where the affidavit identifying the individual as a target of the investigation was not unsealed or reported to the insurer until after the policy’s… Continue Reading
By Emily S. Hart on Posted in Defense Costs,Notice of Claim,Wrongful ActThe United States District Court for the District of Oklahoma has held that a lawsuit filed by a company against its former president did not implicate its policy’s Employment Practices Liability coverage because the lawsuit was not filed by or on behalf of an employee, as required by the policy. Statton v. Allied World Specialty… Continue Reading
By Jessica N. Gallinaro on Posted in Notice of ClaimIn a win for Wiley Rein’s client, the United States District Court for the Eastern District of North Carolina, applying North Carolina law, has held that an insurer owed no coverage for two underlying lawsuits because the insured failed to provide notice of the EEOC charges of discrimination that arose from the same facts at… Continue Reading
By Emily S. Hart on Posted in “Claim”,Notice of Claim,Prior Knowledge/Warranty ExclusionThe United States District Court for the District of Maryland has held that where notice of a potential claim is not reported during the first policy period and the insured knew about, but failed to disclose, the potential claim prior to the second policy period, coverage is precluded under both policies. James River Ins. Co.… Continue Reading
By Margaret Thomas on Posted in Notice of ClaimA Massachusetts federal court has held that, absent special circumstances, an insurance broker does not owe a fiduciary duty of care to its client and therefore is entitled to accept its clients’ representation that all known claims had been reported in its application and has no duty to investigate whether potential claims were not reported. … Continue Reading
By on Posted in Notice of Claim,Related Claims and associated exclusionsA federal district court, applying Texas law, has held that an insured is not entitled to coverage for subsequent related claims when the insured gave late notice of the first claim. ADI Worldlink, LLC v. RSUI Indem. Co., 2017 WL 4112112 (E.D. Tex. Sept. 18, 2017).… Continue Reading
By on Posted in Notice of ClaimThe Ninth Circuit, applying Alaska law, has held that coverage was not afforded under a company’s professional errors and omissions insurance policy for a claim made against the company during the policy period but not reported until the renewal policy period. Alaska Interstate Constr., LLC v. Crum & Forster Specialty Ins. Co., 2017 WL 3601728… Continue Reading
By Nicole Audet Richardson on Posted in Consent to settle/incur defense costs,Defense Costs,Notice of ClaimApplying Delaware law, a federal court in New York has held that where an insured waited more than a year to report a lawsuit to its insurer and during that period incurred more $3.5 million in legal fees, the insurer had no obligation to pay pre-tender defense costs, without regard to whether the insurer could… Continue Reading
By Matthew W. Beato on Posted in Notice of ClaimA Wisconsin intermediate appellate court has held that coverage was unavailable for a claim reported after the termination date of an extended reporting period purchased by the policyholder. Sheffield v. Darwin Nat. Assur. Co., 2017 WL 3149792 (Wisc. Ct. App. July 25, 2017). … Continue Reading
By on Posted in Notice of ClaimThe United States Court of Appeals for the Sixth Circuit, applying Ohio law, has held that an insurer does not need to show prejudice resulting from late notice under a claims made and reported policy in order to deny coverage. McCarty v. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa, 2017 WL 2781561 (6th Cir.… Continue Reading
By Margaret Thomas on Posted in “Claim”,Notice of ClaimThe Appellate Court of Illinois, applying Illinois law, has held that an insurer has no duty to defend or indemnify an insurance agent under an errors and omissions liability policy where the agent failed to provide notice of the claim during the policy period in which the claim was first made. James River Ins. Co.… Continue Reading
By Matthew W. Beato on Posted in “Claim”,Notice of ClaimIn a significant victory for Wiley Rein’s client, a Tennessee federal court has held that an insured’s “general, boiler-plate . . . broad, [and] non-specific” notice that purported to give notice of a potential claim was untimely and insufficient to provide notice of an actual claim made during the policy period and omitted from the… Continue Reading
