Notice of Potential Claim (Timeliness)

An Illinois federal district court has ruled that a technology company’s failure to provide timely notice of a computer outage and related email demand barred coverage for a later-filed lawsuit.  Hartford Fire Ins. Co. v. iNetworks Servs., LLC, 2020 WL 1491139 (N.D. Ill. Mar. 27, 2020).

Continue Reading Untimely Notice of Server Outage and Related Client Communications Bars Coverage for Claim Filed against Technology Service Provider

Applying Arizona and New York law, an Arizona trial court has held that a claims-made-and-reported policy unambiguously does not apply where the insured failed to notify the insurer of a claim before the policy’s reporting deadline.  Southwest Energy Systems LLC v. Underwriters at Lloyd’s, London, Case No. 2017-015010 (Ariz. Super. Ct., Maricopa Cnty. Mar. 15, 2018).  Wiley Rein represented the insurer in this case.

Continue Reading Unambiguous Claims-Made-and-Reported Professional Liability Policy Bars Coverage for Late Noticed Claim

The Ohio Court of Appeals, applying Ohio law, has held that a medical malpractice insurer correctly denied coverage where the insured did not provide notice of the claim until after the policy expired even though the insurer had actual knowledge of the claim from another insured.  Wright State Physicians, Inc. v. The Doctors Company, 2016 Ohio App. LEXIS 5183 (Ohio Ct. App. Dec. 23, 2016).

Continue Reading Notice by One Insured Does Not Satisfy Notice Requirement for Different Insured

The Court of Appeals for the Tenth Circuit, applying Colorado law, has held that an insurer’s denial of coverage to the Federal Deposit Insurance Corporation (FDIC), standing in the shoes of an insured as receiver, does not violate public policy where the insured’s rights under a policy have not vested.  FDIC v. Kan. Bankers Sur. Co., 2016 WL 6440367 (10th Cir. Nov. 1, 2016).  The court also held that the FDIC forfeited two arguments related to policy interpretation on appeal.

Continue Reading Bank’s Failure to Submit Proof of Loss Precludes FDIC’s Claim as Receiver Under Crime Bond

A federal district court in Illinois has granted an insurer’s motion for summary judgment rescinding three consecutive professional liability policies.  This comes after the court determined under Illinois law that the insured attorney made material misrepresentations in each of the renewal applications.  Minn. Lawyers Mut. Ins. Co. v. Schulman, 2016 WL 4988006 (N.D. Ill. Sept. 19, 2016).

Continue Reading Lawyer’s Material Misrepresentations in Policy Renewal Applications Justify Rescission

The United States District Court for the Southern District of Texas has held that notice of a potential claim provided to an insurance agent is not considered notice to an insurer for the purposes of determining when a claim is first reported.  Evanston Ins. Co. v. Cheetah, Inc., 2016 WL 4494440 (S.D. Tex. Aug. 26, 2016).
Continue Reading Notice to Insurance Agent Does Not Constitute Notice to Insurer