Michael Glascott, Author at The Insurance & Reinsurance Report

April 25, 2013 Environmental

Bad News for Insurers: Groundless Claims Must Be Defended

Illinois Tool Works Inc. et al. v. Travelers Casualty & Surety Co. et al.,
Circuit Court of Cook County, Illinois

In this insurance coverage action from the Circuit Court of Illinois, the plaintiffs, Illinois Tool Works, Inc. and ITW Finishing LLC (ITW) brought action against their insurers Travelers Casualty & Surety Co., the Travelers Indemnity Co. of Connecticut and Century Indemnity Co., (defendants) for insurance coverage in thousands of underlying toxic tort claims allegedly arising from exposure to harmful chemicals contained in the plaintiffs’ …

April 10, 2013 Policy Conditions, Considerations, Construction, and Formation

Indiana Appeals Court Finds Ambiguity in Umbrella Policy, Results in $2 Million in Coverage

Gary Hammerstone et al. v. Indiana Insurance Co., (06A04-1211-PL-595 Court of Appeals of Indiana)
In 2009, plaintiff Gary Hammerstone injured his right hand and arm while trying to clear a clog in a Trac-Vac lawn and leaf vacuum he purchased in 2004. Mr. Hammerstone brought a lawsuit against the vacuum’s manufacturer, Palmor Products Inc. (Palmor), and Palmor’s distributors Northampton Farm Bureau Cooperative Association, and Canns-Bilco Distribution Inc. claiming that they negligently designed, manufactured, marketed, and distributed the vacuum.

Palmor provided notice of the underlying …

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

No Coverage in Auto Accident Where Policy Was Cancelled for Failure to Pay Premiums

Scottsdale Ins. Co. v. Bounds, United States District Court for the District of Maryland, March 8, 2013

The defendant business procured commercial auto and excess policies from the plaintiff insurer through a premium finance company. The policies expressly provided that the insurance would be provided in return for the payment of policy premiums. The insured made the initial premium payments but failed to make subsequent premium payments to the premium financing company. The policies were therefore cancelled and the premium finance company notified the insured …

December 18, 2012 Policy Conditions, Considerations, Construction, and Formation

Interstate Fire & Casualty Co. Owes Defense Under Apartment Exception to Residential Construction Endorsement

Ment Bros. Iron Works Co. v. Interstate Fire & Casualty Co.
(2012 U.S. App. LEXIS 25310 (2d Cir. N.Y. Dec. 11, 2012)

In this declaratory judgment action, The Second Circuit Court of Appeals found that Interstate Fire & Casualty Co. owed its insured, Ment Bros. Iron Works Co., a defense in a New York state court action stemming from property damage allegedly caused by Ment during the construction of a building located at 40 Mercer St., in New York City.

The developer, WXIV/Broadway Grand Realty …

October 22, 2012 Policy Conditions, Considerations, Construction, and Formation

Ohio Supreme Court Finds Defective Construction is Not an ‘Occurrence’

Westfield Ins. Co. v. Custom Agri Sys., Inc.
(Ohio Oct. 16, 2012)

The Ohio Supreme Court finally addressed whether faulty workmanship constitutes an “occurrence” that triggers coverage under a CGL policy, and decided that it does not.

Younglove Construction entered into a contract with PSD Developments, wherein it agreed to construct a feed-manufacturing plant in Sandusky, Ohio. Younglove filed suit in federal court against PSD after PSD withheld payment. In its answer, PSD alleged that it sustained damages as a result of defects in a …

July 17, 2012 Uncategorized

Obama Extends Federal Flood Insurance Program, OK’s Use of Private Reinsurers

On July 6, 2012, President Obama signed the Biggert-Waters Flood Insurance Reform Act of 2012 extending the National Flood Insurance Program’s authority through September 30, 2017. The law extends the National Flood Insurance Program (NFIP) for five years and makes reforms to the program.

It also calls for reforms including the phasing out of subsidies for many properties, raising the cap on annual premium increases from 10 to 20 percent, allowing multifamily properties to purchase NFIP policies, imposing minimum deductibles for flood claims, requiring the …