Jonathan Schapp, Author at The Insurance & Reinsurance Report

December 4, 2014 Policy Conditions, Considerations, Construction, and Formation

“Test Drive” Ambiguous

In Exotic Motorcars and Jewelry, Inc. v. Essex Insurance Co., a Florida appeals court found the trial court interpreted material policy terms too narrowly in denying coverage of the vehicle collision at issue.

In this coverage dispute, the insured Exotic Motorcars and Jewelry, Inc. (Exotic) sued its insurer Essex Insurance Co. (Essex) to recover its loss from a vehicle collision. The collision occurred while the insured, an exotic car dealer, drove a newly acquired vehicle to another location for inspection. The insured’s policy only …

September 6, 2014 Other Insurance

Insured Settles for Less from Insurers, and Excess Coverage Still Must Indemnify: “Ultimate Net Loss Liability” Could Apply to Settlement Amounts with Lower Level Insurers

On Friday, August 29, 2014, the Eleventh Court of Appeals in Texas reversed the trial court’s summary judgment order finding that an excess insurance policy was triggered though the underlying policies had not exhausted their full coverage limit.

Plantation Pipe Line Co. operates pipelines transporting petroleum throughout the southern and eastern United States. In 1990, a leak was found in North Carolina, and Plantation was required to remediate the site. Plantation spent almost $12 million to clean and restore the area. Plantation sought defense and …

December 9, 2013 Policy Conditions, Considerations, Construction, and Formation

In Motor Vehicle Accident, Insurer of Vehicle Owner Owes Primary Coverage Despite “Other Insurance” Provisions

In October 2008, Jayme Lynn Jones, an employee of Hook & Anchor (H&A) was involved in a collision with Alexander Kosaka while Jones was driving a truck owned by Chemical Weed Control, Inc. (Chemical Weed). American States Insurance Company (American) insured H&A. ACE American Insurance Company (ACE) insured Chemical Weed. American tendered the defense of H&A in the ensuing litigation to ACE, which ACE denied.

American defended H&A, and subsequently commenced this declaratory judgment action seeking defense costs and attorneys’ fees and a declaration that …