Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Georgia

Georgia Court Reaffirms Longstanding Rule on Conflicting “Other Insurance” Provisions

Posted in Other Insurance
On a certified question from the U.S. District Court for the Northern District of Georgia, the Supreme Court of Georgia has held that the traditional rule of pro rata allocation of coverage applied when two policies’ “other insurance” provisions conflict, regardless of the fact that one of the coverages was from a state-regulated insurance program. … Continue Reading

Fraudulent Voucher Redemption Scheme Perpetrated by Phone Involves “Use of Computer” but Does Not “Directly Result” in Covered Loss

Posted in Cyber Policies and Issues
The United States Court of Appeals for the Eleventh Circuit, applying Georgia law, has affirmed a district court’s ruling that a fraudulent scheme using telephones to exploit a computer coding vulnerability in the insured’s system that ultimately led to a loss was not covered under a computer fraud provision in a commercial crime policy.  Interactive… Continue Reading

No Coverage for Underlying Lawsuits Due to Insured’s Failure to Provide Notice as Soon as Practicable

Posted in Notice of Claim
The 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

Loss Caused by Fraudulent Exploitation of Coding Error Does Not Implicate Computer Fraud Coverage

Posted in Cyber Policies and Issues
A Georgia federal district court has held that a fraudulent scheme using telephones to exploit a computer coding vulnerability in the insured’s system that ultimately led to a loss was not covered under a computer fraud provision in a commercial crime policy.  Incomm Holdings, Inc. v. Great Am. Ins. Co., 2017 WL 1021749 (N.D. Ga.… Continue Reading

Rescission Voids All Policy Provisions, Including Innocent Insured Provision

Posted in Rescission
Applying Georgia law, a federal district court has held that rescission of an insurance policy based on a material misrepresentation in the application voids all provisions of the policy, including the “innocent insured” provision, such that the insureds who had no knowledge of the fraud cannot rely on that provision to preserve coverage for themselves. ProAssurance… Continue Reading