Second Circuit Says Two Year Statute of Limitation Language in Policy Enforceable

O&E Growers, Inc. v. Selective Ins. Co. of America

U.S. Ct. of App. (2nd Circuit, June 1, 2009)


Insurance policy’s two year statute of limitation period barred claim brought six years after the loss, not from the date of jury verdict.


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By Sharon Angelino

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TIMELINESS OF NOTICE AND/OR DISCLAIMER – Issues of fact existed regarding insured’s reasonable belief in non-liability.

Preferred Mutual Ins. Co. v. New York Fire-Shield, Inc.

N.Y.A.D. (3d Dept., June 4, 2009)

Manufacturer was aware its fire-retardant spray was used on a product worm by two Marines when they suffered severe burns, but failed to provide notice to its insurer for two years.  The appellate court found issues of fact existed regarding insured’s reasonable belief in non-liability and should be resolved by a jury.


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By Kimberly E. Whistler and Joseph A.Olivia

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Disability insurer had no obligation to provide further disability benefits where participant breached the policy.

Paul Revere Life Ins. Co. v. Cahn

U.S. Ct. of App. (2nd Circuit, June 2, 2009)

The participant’s willful failure to provide insurer relevant information related to the first-party benefits claim breached the policy conditions, justifying the insurer’s disclaimer.


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By Daniel W. Gerber and Kimberly Whistler

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The Growing Potential Of Green Building Coverage Claims

Everyone is going green. The problem is who will pay for failures to meet complaince with new green building standards? The authors examine the potential scenarios that may arise and the potential for insurance coverage related issues.

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By Daniel W. Gerber and Brian R. Biggie

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Chinese Drywall Insurance Coverage Litigation Begins

As claims mount and federal and state agencies have begun a quest to determine who is responsible for the Chinese drywall fiasco, insurance disputes regarding coverage for the claims are beginning to make their way through the courts. In March 2009, the first complaint regarding homeowner’s insurance for drywall claims was filed.  Two Florida policyholders sued their homeowners’ insurer, seeking coverage for property damage resulting from Chinese drywall in their home.  See Baker v. American Home Assurance Company, filed in the United States

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Seventh Circuit Rules Policyholder not Entitled to Coverage for Counsel Chosen Without Insurer Approval

National Cas. Co. v. Forge Industrial Staffing Inc.

(7th Cir. [ Ill.] June 3, 2009)

A policyholder declined to accept insurer-appointed counsel to defend it against claims before the Equal Opportunity Employment Commission because it was fearful that the insurer would control the defense in such a way that would preclude coverage.  The court held that the underlying claims were not mutually exclusive, one of which would be covered and one of which would not be covered.  As such, appointment of conflict counsel was

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GS Insurance CaseWatch – Bi-Weekly Update of Recent Appellate Insurance Decisions in U.S.

Update of All New Coverage Decisions in U.S.for June 8, 2009

CaseWatch: Insurance is free and provides timely summaries of and access to insurance law decisions from all the appellate courts of the United States. It is distributed bi-weekly. For ease of reference, CaseWatch is organized by topic. Jurisdictional information and links to full text decisions, where available, are found in individual case titles.

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By Daniel W. Gerber

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Court Holds Insurer Did Not Act In Bad Faith By Not Obtaining Release Of Its Insured As Part Of Settlement Payment

ACCC Ins. Co. v. Tammy Renee Carter et al,

(United States District Court, Northern District of Georgia, May 26, 2009)

This action involved a unique question under Georgia law regarding an alleged bad faith refusal to pay claim and whether an insurer acts in bad faith in paying the policy limits of its insured’s policy without conditioning payment on the release of its insured where claimants’ counsel demanded payment of the face amount of its insured’s policy, but expressly refused to release the insured in

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Legislative Update for All U.S. States


Senate Bill 212

(Introduced Jan. 21, 2009; Last Action May 19, 2009)

This bill prohibits insurers from charging a cancellation fee when an insured cancels its automobile liability insurance policy if the insured has been a customer of the insurer for at least one year.


House Bill 845

(Introduced Feb. 11, 2009; Last Action May 19, 2009)

This bill relates to self insurance funds and requires an application for Workers Compensation coverage issued by a group self insurance fund to notify applicants that

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Madoff Related Suit Against Fairfield Greenwich Group for $3.5 billion

Irving Picard, trustee for Bernard Madoff's business and representatives of investors, sued the Connecticutbased company, Fairfield Greenwich Group (“FGG”) for $3.5 billion.  FGG was the largest feeder fund and the allegations are that it therefore should have been aware Madoff was engaged in fraud.  The monetary calculation of $3.5 billion represents money that FGG received from Madoff on behalf of clients.This suit is one of many brought or to be brought by the trustee in charge of liquidating the assets of

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