Applying Iowa law, a federal district court has held that an insured’s failure to give notice of a letter seeking information in connection with a
Continue Reading Insurer Could Not Assert Late Notice Defense Because Letter from Department of Labor Did Not Allege a “Fiduciary Claim” for a “Wrongful Act”

An Iowa federal district court, in a case of first impression, has held that a medical record request did not constitute a “Claim” under a claims-made medical malpractice policy.  Capson Physicians Ins. Co. v. Yates, 2017 WL 6997897 (S.D. Iowa Nov. 8, 2017).

Continue Reading Iowa Court Holds that Medical Record Request Does Not Constitute a “Claim”

The Illinois Intermediate Appellate Court, applying Iowa law, has affirmed that a professional liability insurer must provide a defense for an attorney who allegedly mishandled funds that he was holding in escrow related to the plaintiff’s transaction with another company for which the attorney was vice president and legal counsel. Willey v. Minn. Lawyers Mutual Ins. Co., 2017 IL App (5th) 160452 (Ill. App. Dec. 6, 2017). In so doing, the court first determined that the claim was properly interpreted as one for a breach of duty as an escrow agent, which was within the grant of coverage for “professional services.” The court then found a business enterprise exclusion inapplicable because it required that damages arise from certain conflicts of interest that were not present.

Continue Reading Breach of Fiduciary Duty Claim Against Lawyer Acting as Both Escrow Agent and Attorney for Counterparty Triggers Duty to Defend Notwithstanding Business Enterprise Exclusion

Applying Iowa law, the United States Court of Appeals for the Eighth Circuit has held that an insurer can rescind an E&O policy because the insured failed to disclose the existence of a claim made after the submission of the application but before the insured agreed to purchase coverage. Capson Physicians Ins. Co. v. MMIC Ins. Inc., 2016 WL 3902654 (8th Cir. July 19, 2016). The court also held that the insurer’s failure to attach a copy of the application to the policy did not prevent the insurer from rescinding the policy.
Continue Reading Insurer Entitled to Rescind Policy Based on Insured’s Failure to Disclose Claim Made After Application Submitted but Before Coverage Bound