CGL Does Not Cover Abu Ghraig Torture Claims

CACI International Inc. v. St. Paul Fire and Marine Ins. Co.

(11th Cir. ( Va.), May 14, 2009)

The policies at issue limited coverage to the United States and Canada, the policyholder argued that claims regarding negligent hiring happened in the United States.  The 11th Circuit held that the underlying complaints cannot be read to allege that the events happened within the coverage territory based on established principals of insurance law where the place of the injury, in this case Iraq, determines

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When is Expert Testimony Appropriate for Bad Faith Claims?

There is a decision out of the Eastern District of Kentucky which deals with the qualifications of an expert in a bad faith case. In applying Daubert and its progeny, the court excluded the testimony of a former judge that had been offered as an expert on bad faith issues. See Sullivan v. AIG, 2008 U.S. Dist. LEXIS 56446. Contrast this case with holding of the a case out of the Western District of Wisconsin where the court allowed the testimony of an attorney on

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Claims Made During Extended Reporting Period Deemed Uncovered

James River Insurance Co. v. Alliance Children's Servs., Inc.

(D. Mass. May 8, 2009)

A CGL insurer sued its policyholder, seeking a declaration that it was not obligated to defend or indemnify it in an underlying wrongful death action because the claim was not made during the policy period. The court granted the insurer summary judgment, finding that the policy expressly required that, to be covered, a claim must be made during the policy period, not during the extended reporting period.


By Carrie Appler

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Life Insurance Carrier Waived Right to Rescind Policy, Despite Finding Action was Timely Commenced

Security Mutual Life Ins. Co. v. Rodriguez

(New York State, Appellate Division, 1st Dept.)  May 26, 2009

Although life insurer’s action was not barred by the incontestability clause, the court held it waived its right to rescind the policy after it continued to collect premiums.  There, the insurance carrier commenced an action seeking to rescind a life insurance policy based on the policyholder’s alleged false and misleading representations.  Pursuant to the statutory requirement of New York Insurance Law §3203, the policy

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Court Finds That Insurer Has a Duty to Defend Under Claims-Made Pollution Liability Policy

N. Yamhill Station, LLC. v. Great American Alliance Ins. Co.

(District Court, Oregon, May 21, 2009)


Effective October 6, 2006, plaintiffs’ gas station was covered by a pollution liability policy.  In November 2006, a leak in a gasoline storage tank was discovered.  The insurer denied coverage because the leak commenced before the inception date of the policy.  However, the court disagreed, holding that the underlying complaint could be reasonably interpreted as alleging that an environmental incident occurred after the inception date

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Cases Cited in Goldberg Segalla’s Reinsurance Review – June 2009 Edition

Supreme Court Decision – Download Andersen.v.Carlisle

Tenth Circuit Decision – Download Mid-Continent v. General Re

Eighth Circuit Decision – Download In re Acceptance Insurance Co.

Third Circuit Decision – Download Swiss Reinsurance v. Airport

Northern District of California Decision - Download The Flintkote Co. v. General Accident Assurance Co.

Eastern District of Louisana Decision  - Download Imperial Trading Co. v. Travelers

Supreme Court of Ohio Decision  - Download Olympic Holding Co. v. ACE Limited

Supreme Court of New Hampshire Decision  - Download In the Matter

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Recent Insurance Related Legislation

California Senate Bill 119

(Introduced Feb. 2, 2009, Last Action May 5, 2009)

This bill deletes the expiration date for existing law that prohibits the bringing of an action for statements made in bad faith against an insurer issuing professional liability insurance policies to health care providers unless the statement was made under a specified circumstance.

Connecticut Senate Bill 212

(Introduced Jan. 21, 2009, Last Action May 5, 2009)

This bill prohibits the cancellation fee for certain automobile liability insurance policyholders.

Connecticut Senate Bill 961

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High Court Reasons that Global Umbrella Policy Does Not Drop Down

Flexsys America LP v XL Insurance Company Ltd

[2009] EWHC 1115 (Comm) (20 May 2009)

The policyholder maintained that it exhausted its $1M limits under a primary policy issued by XL in Ohio. It then claimed tan XL global policy, with limits of $25M and subject to U.K. law, should apply to cover remaining expenses and claims. The court found that the "drop down" of excess policy was subject to a determination of whether the primary policy would apply to the particular claim. The excess insurer

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