Jeffrey L. Kingsley, Author at The Insurance & Reinsurance Report

August 19, 2014 Emerging Issues

Sixth Circuit: ‘Advertising Idea’ Must Involve ‘Plan, Scheme, or Design’ to Bring Public Attention; Standing Alone Customer List is Not a ‘Plan’

On Friday, August 15, The 6^th Circuit Court of Appeals upheld an order from the Eastern District of Kentucky, granting Liberty Corporate Capital Limited’s declaratory judgment determining it has no duty to indemnify or defend the plaintiff firearms retailer.

Security Safe Outlet (SSO), a firearms retailer in Kentucky, acquired BudsGunShop.com LLC’s (the website) customer information database through their employee, Matthew Denninghoff, who previously worked in IT for the website. Denninghoff allegedly maintained a copy of the website’s customer database and supplied it to his …

August 17, 2014 Emerging Issues

Motor Carrier Act Does Not Expand Policy Definitions Where Coverage Exceeds Statutory Minimums, Sixth Circuit Says

On August 5, the Sixth Circuit Court of Appeals reversed and remanded a lower court ruling granting an insurer a Rule 12(c) dismissal in a declaratory judgment action based on the district court’s premature determination of what constituted an “employee” under the policy at issue.

The Estate of Donald Underwood sued Expeditor’s Express, a trucking company for whom Underwood was driving, after Underwood’s truck veered off the road, burst into flames, and killed him. Expeditor asked its insurer, Gramercy Insurance Company, to defend the lawsuit …

July 14, 2014 Policy Conditions, Considerations, Construction, and Formation

11th Circuit Rejects ‘Complaint Taken as a Whole’ Analysis of Insurer’s Duty to Defend, Places Reinsurer on Hook for Defense Costs

In Public Risk Management of Florida v. One Beacon Insurance Co., the 11th Circuit Court of Appeals reversed a decision relieving primary insurer Public Risk Management of Florida (PRM) of its duty to defend the City of Wintergarden because the underlying “Complaint taken as a whole” failed to state that the City committed a covered wrongful act. As a result, reinsurer OneBeacon Insurance Company was forced to pay PRM’s defense costs.

PRM is an intergovernmental risk management association that insures various local governmental entities …

June 25, 2014 Emerging Issues

Mining Operations Exclusion Applies, but Only to Excess Layers

The Tenth Circuit overturned the lower court’s decision that would have freed a liability insurer from covering damages allegedly caused by its insured brine well operator. Specifically, the insured was alleged to have been negligent in causing destabilization of various structures caused by an underground cavern. This insurer issued primary and numerous excess/umbrella policies.

Initially, the insurer was not responsible for providing coverage due to an umbrella provision that excluded coverage due to damage or loss of use of property resulting from depressions in the …

January 27, 2014 Emerging Issues

Eleventh Circuit Blows Away $4M Verdict in Hurricane Wilma Case

The Eleventh Circuit recently reduced a $4 million jury verdict to $1,600 after finding that the policyholder, a property management company, lacked an insurable interest in the ownership of the property to justify any higher award.

The plaintiff, Banta Properties (Banta), served as the property management company for three apartment complexes in Broward County, Florida. The three complexes were all separate legal entities that were not owned by Banta. In exchange for managing the complexes, the owners paid Banta 4 percent of gross income.

Banta …

January 8, 2014 Emerging Issues

Cuse Wins Again: Appellate Court Ruled that Investigative Subpoenas Involving Syracuse University Coach Bernie Fine are Covered Under Policy

A New York appellate court recently affirmed a lower court’s ruling that a claims-made policy issued to Syracuse University covered the university’s cost of responding to investigative subpoenas issued in connection with sexual abuse allegations against its former Associate Basketball Coach, Bernie Fine.

In November 2011, Syracuse University became aware of public media reports of allegations that Bernie Fine sexually abused two former participants in the university’s basketball program (referred to as “ball boys”) over a period of years while acting in his capacity as …

November 19, 2013 Policy Conditions, Considerations, Construction, and Formation

Employee Exclusion Applies to “Statutory Employees” Even if Not Technically Employed by Additional Insured

The Eleventh Circuit recently held that a standard employee exclusion in a liability policy bars coverage to an additional insured where the injured claimant is a “statutory employee” of the additional insured for purposes of workers’ compensation law, even if the injured claimant is not technically employed by the additional insured.

The estate of an employee of a third-tier subcontractor on a construction project sued the project’s general contractor after the employee fell at the construction site and died as a result. The general contractor …

November 11, 2013 Emerging Issues

Tolling Agreements Cause Coverage Concern

An insurance coverage dispute has arisen in connection with litigation involving a robotic surgery medical device maker. A declaratory judgment action seeking rescission of product liability insurance policies issued to the manufacturer was filed in the U.S. District Court for the Northern District of California. If successful, the insurer may avoid obligations under its primary and excess insurance policies providing $15 million per occurrence and $50 million aggregate.

To read the rest of this article, authored by Sean T. Stadelman, please visit Life Science …

October 21, 2013 Policy Conditions, Considerations, Construction, and Formation

“Personal and Advertising Injury” Coverage Insures Property Damage, Not Just Physical Harm

An Illinois appellate court recently held that insurance coverage for wrongful eviction claims, typically part of “personal and advertising injury” provided by Coverage B in CGL policies, includes coverage for property damage as a result of the eviction, not just physical harm to a person.

The insured property owners leased commercial space to a tenant who worked as an architect, painter, and sculptor. The tenant used the space as a rent storage and work space. During the lease term, the owners sold the space and, …

October 2, 2013 Policy Conditions, Considerations, Construction, and Formation

Rule Followed by NY Federal Court for Damages Outside NY

Indian Harbor Insurance Company v. The City of San Diego
(Case No. 12-cv-5787) (S.D.N.Y., September 25, 2013)

A New York federal court continued to honor the line of New York cases that stand for the proposition that a showing of prejudice is not required for the late notice defense on policies issued or delivered prior to January 17, 2009.

This case arose as a result of multiple underlying claims made against a California State municipality by two homeowners associations and a real estate construction company. …