Insurance

By Daniel Veroff on October 19, 2019

Our Northern California office is battling the big insurers for their conduct in response the 2017 NorCal Wildfires, and recently some of our clients received letters purporting to be a “friendly reminder” from their insurance company. Well, they were actually not so friendly. Instead, they are kind of a punch to the gut.…

The Policyholder Perspective

Will your EPLI policy cover “wage and hour” claims in the wake of the California Court of Appeal’s decision in Southern California Pizza?

By Lilit Asadourian, Maisie McDonald & Lavinia S. Osilesi on October 18, 2019

It has long been acknowledged that typical Employment Practices Liability Insurance (EPLI) policies exclude coverage for “wage and hour” claims.[1] [2] However, a recent California Court of Appeal decision, Southern California Pizza Co., LLC v. Certain Underwriters at Lloyd’s, London Subscribing to Policy Number 11EPL-20208,[3] narrows the definition of what is a wage and hour claim, and improves the possibility of obtaining coverage for broad-brush wage and hour claims that tack on…

Executive Summary Blog

Third Circuit Finds Major Shareholder Exclusion Ambiguous as Applied to Company Acquiring All of Insured’s Stock after Policy Period

By Ashley-Anne L. Criss on October 18, 2019

The United States Court of Appeals for the Third Circuit, applying Delaware law, has held that a D&O policy’s Major Shareholder Exclusion, barring claims brought against the insured entity by a company owning five percent or more of the entity, was ambiguous as applied to a company acquiring one hundred percent of the insured’s stock after the policy period. EMSI Acquisition, Inc. v. RSUI Indem. Co., 2019 WL 4511948 (3d Cir. Sept. 19, 2019). …

It Pays to Be Covered™

Insurance Services Organization Revises Policy Forms to Address Cannabis

By Heather Howell Wright on October 18, 2019

The Insurance Services Office, Inc. (ISO), which develops standard insurance policy forms for use by insurers, recently released its first cannabis-related endorsements (Cannabis Endorsements) to the businessowner policy form. This new release provides five cannabis exclusion endorsements; two of the endorsements change property coverage for cannabis, and the other three endorsements change liability coverage for cannabis. As with any insurance policy or endorsement, understanding the specific language of these new cannabis endorsements is critical to…

Property Insurance Coverage Law Blog

What Does the Insurance Industry Teach Itself About Public Insurance Adjusters?

By Chip Merlin on October 18, 2019

Insurance companies have never embraced people or professionals helping their own customers obtain what they are owed or laws that may expose insurance claim abuses by insurers. The obligation to treat the insurance customer with utmost good faith is one that is taught, but not one the insurance claim industry wants to be held accountable to follow. They especially do not want their own customers to have free-market accountability through private lawsuits enforcing this agreed…

Zalma on Insurance

The Information Needed by Every Insurer Deceived by an Insured

By Barry Zalma on October 18, 2019

“Rescission of Insurance – 2nd Edition” Read about this and other insurance books by Barry Zalma at https://zalma.com/blog/insurance-claims-library/ Newly updated and expanded, “Rescission of Insurance – 2nd Edition” provides the insurance coverage lawyer, policyholder lawyer and claims professionals with everything needed to understand and enforce the equitable remedy of rescission. Everyone involved in or with the business of insurance must understand that rescission is an equitable remedy as ancient as the common law of Britain.…

Zalma on Insurance

Avoid Penalties: Only Assert Bona Fide Disputes!

By Barry Zalma on October 18, 2019

Denial Based on Reasonable Interpretation of Policy Wording Avoids Penalties The plaintiff, Jeffrey Patzius, sought sanctions pursuant to section 155 of the Illinois Insurance Code (Code) (215 ILCS 5/155 (West 2016)) against the defendant, American Family Insurance, for what he alleged were the defendant’s vexatious and unreasonable delay in making payment on the plaintiff’s insurance claim. On August 7, 2018, the trial court denied the plaintiff’s request for sanctions, finding that, because there was a…

The D&O Diary

Securities Suits Filed Against Companies Involved in E-Cigarette Business

By Kevin LaCroix on October 17, 2019

Just about everyone who has been active in the D&O insurance arena for a while knows that every now and then one industrial segment or another will suddenly find itself in the midst of a securities litigation blitz. Years ago after the Internet bubble burst, it was the dot com companies. Further back than that, as at least some of us can remember, there were all of the failed banks in the S&L Crisis (and,…

Zalma on Insurance

Why do Courts Let Insureds Vex and Annoy Insurers?

By Barry Zalma on October 17, 2019

Evidence is Needed to Prove the Tort of Bad Faith Some people simply refuse to accept a claim denial, even after a trial court, three times found that the insured had no case. In Timothy A. Mohney v. American General Life Insurance Company, As Successor by Merger to American General Assurance Company, As Successor in Interest to U.S. Life Credit Insurance Company, J-A08011-19, No. 760 WDA 2018, Superior Court of Pennsylvania (October 10, 2019) Timothy…