Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Washington

Defense Cost Recoupment Provisions Enforceable Under Washington Law

Posted in Defense Costs
The United States District Court for the Western District of Washington, applying Washington law, has held that no Washington state public policy prevents an insurer from enforcing a defense cost recoupment provision.  Massachusetts Bay Ins. Co. v. Walflor Indus., 2019 WL 1651659 (W.D. Wash. Apr. 17, 2019).  The court resolved the issue based on precedent… Continue Reading

Insurer Must Defend Utility in Suit Based on Outage, Despite Exclusion for Property Damage and Resulting Loss of Use

Posted in Bad Faith
A Washington federal district court, applying Washington law, has held that an insurer who issued a public officials and employment practices liability policy to a utility had a duty to defend the insured in an action stemming from damages to a refinery after a power outage, despite the policy’s property damage exclusion.  Indian Harbor Ins.… Continue Reading

Exclusion Bars Coverage for Fraudulent Instruction Loss when Employee with Authority to Initiate Wire Transfer Enters Fraudulent Account Information

Posted in Cyber Policies and Issues
The U.S. Court of Appeals for the Ninth Circuit has held that an exclusion for loss “resulting directly or indirectly from the input of Electronic Data by a natural person having the authority to enter the Insured’s Computer System” barred coverage under a Computer Fraud insuring clause for a business email compromise/fraudulent instruction scheme.  Aqua… Continue Reading

Washington Court Holds that Statutory Notice of Intent to Sue Letter is Not a “Claim”

Posted in “Claim”
The U.S. District Court for the Eastern District of Washington has held that a statutory notice of intent to sue letter received by an insured prior to a claims-made policy period did not constitute a “claim,” because it was not a “written demand for monetary, non-monetary or injunctive relief.”  Tree Top, Inc. v. Starr Indem.… Continue Reading

Washington Court Finds Coverage for Fraudulently Originated Loans Repurchased by Now-Defunct Bank

Posted in Loss
A Washington federal court has denied an insurer’s motion for summary judgment regarding coverage under a fidelity bond issued to a now-defunct bank for losses incurred in connection with fraudulently originated loans the bank purchased, resold, and ultimately repurchased pursuant to contractual obligation. The court held that the loan originators were “Employees” under the policy,… Continue Reading

Insured’s Failure to Provide Notice of Demand Letter Precludes Coverage for Related Lawsuit Noticed in Subsequent Policy Period

Posted in “Claim”, Notice of Claim, Related Claims and associated exclusions
A Washington federal court has held that an insured’s failure to provide notice of a demand letter to its insurer during the policy period in which the letter was received precludes coverage under a claims-made and reported policy for a related lawsuit filed during a subsequent policy period. National Union Fire Ins. Co. v. Zillow,… Continue Reading

Contract Exclusion Bars Coverage for Suit Alleging Breach of Special Relationship and Conversion

Posted in Breach of Contract – coverage for amounts due pursuant to contract, exclusions, Exclusions
The United States Court of Appeals for the Ninth Circuit, applying Washington law, has held that a contract exclusion precluded defense or indemnity coverage for a suit alleging breach of special relationship and conversion torts that were predicated on premature termination of a contract. X2 Biosystems, Inc. v. Federal Ins. Co., 2016 WL 4120694 (9th… Continue Reading

Insurer Did Not Breach Duty to Defend Where it Refused to Defend Insured’s Husband and Marital Community

Posted in Bad Faith, Defense Costs
The United States District Court for the Western District of Washington, applying Washington law, has held that insurers did not breach their duty to defend where they refused to provide a defense for an insured’s husband and marital community.  Staheli v. Chicago Ins. Co., 2016 WL 2930444 (W.D. Wash. May 19, 2016).  The court also… Continue Reading

Environmental Claims Arose from Prior Orders and Deemed Not First Made During Relevant Policy Period

Posted in “Claim”, Related Claims and associated exclusions
A federal district court in Washington has held that an insurer had no duty to defend four environmental claims brought against an insured by state and federal agencies because the claims at issue were either first made prior to the policy period or fell within the scope of an exclusion barring coverage for claims related… Continue Reading