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Denial of Insurance Coverage Reservation of Rights

Rivkin Radler LLP

January 2025 New York Insurance Coverage Law Update

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The insured owned premises located in Huntington Station, NY. The Claimant was allegedly injured when she slipped and fell at the premises. The Claimant sued the insured and the insured sought coverage under her homeowners...more

Butler Weihmuller Katz Craig LLP

Sexual Assault Is Not A Professional Service

Not many cases in Florida analyze Professional Services Exclusions in general liability policies.  However, on September 16, 2022, the Eleventh Circuit Court of Appeals released an order providing some clarification about the...more

White and Williams LLP

Delaware District Court Holds D&O Policy Does Not Cover Acts Prior to Insured’s Formation, and Rejects Attempt to Obtain Coverage...

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In a decision addressing several coverage issues under a directors and officers liability policy, a Delaware federal court held that coverage did not extend to claims based on acts alleged to have taken place before the...more

Lowenstein Sandler LLP

Settling a Claim: Get Comfortable With Being Uncomfortable

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Although the time may be right to settle that underlying action, issues can arise when your insurer is not on the same page, especially if the insurer has agreed to defend the claim subject to a reservation of rights on...more

Rivkin Radler LLP

Appellate Division Affirms Summary Judgment Dismissal Of Legal Malpractice Claim

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The Appellate Division, First Department recently affirmed a trial court’s decision granting summary judgment in favor of the defendant law firm, holding that the plaintiff could not prove the proximate cause element of its...more

Cozen O'Connor

Extrinsic Evidence and the Duty to Defend in Texas: To Be or Not to Be?

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In July of 2020, the United States Court of Appeals for the Fifth Circuit revisited and affirmed its prediction that Texas courts will not allow extrinsic evidence to determine an insurer’s duty to defend where such evidence...more

Wiley Rein LLP

Insurer Estopped from Denying Coverage for Legal Malpractice Action But Not Subsequent Disgorgement Action

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The U.S. District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that an insurer is estopped from denying coverage for a legal malpractice action after defending the action for over a year...more

Gould + Ratner LLP

Suburb's Citizens Out of Luck Against Contractor's Insurer for Contaminated Water

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Under established Illinois law, an insurer must defend a legal action filed against its insured unless it is clear from the face of the underlying complaint that the allegations fail to state facts which bring the case...more

White and Williams LLP

Connecticut Supreme Court Finds Duty to Defend When Case Law is Uncertain

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The Connecticut Supreme Court recently addressed whether an insurer has a duty to defend when faced with legal uncertainty as to whether coverage is owed: for example, when there is no Connecticut case law on point, and...more

Pillsbury - Policyholder Pulse blog

Policyholders Caught in a Reservation of Rights Catch-22 May Still Be Able to Get Out of the Bind

As coverage counsel, we witness firsthand the precarious positions policyholders are often left in due to the actions (or inactions) of their insurance carriers. A prime example of such a catch-22 scenario is when an insurer...more

Carlton Fields

Pennsylvania Court Ices General Reservation of Rights Letters: Insurers Must Specify “Emergent Coverage Issues”

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In Selective Way Insurance Co. v. MAK Services Inc., the Superior Court of Pennsylvania reversed an insurer-favorable summary judgment after finding that its reservation of rights letter was insufficient....more

Hinshaw & Culbertson - Insights for Insurers

Appellate Court Rules Insurers Have Duty to Defend Illinois Biometric Privacy Claim

An Illinois state appellate court recently ruled that a customer's biometric privacy class action claims against an insured tanning salon potentially fell within two insurer's personal injury coverage. See, West Bend Mutual...more

Pillsbury - Policyholder Pulse blog

Are Denials of Coverage and Belated Defense Payments a Breach of the Duty to Defend? In Wisconsin—Not Necessarily.

When an insurer pursues a judicial determination on its duty to defend and agrees to defend its insured retroactively only five months after its insured initially requested a defense, has it breached its duty to defend? In...more

Cozen O'Connor

Insurers Must Inform Washington Insureds of the Availability of Insurance Commissioner Assistance

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As of August 1, 2020, Washington will join the growing number of jurisdictions requiring insurers to inform insureds that they may seek guidance from state insurance regulators — in this case, the Washington Insurance...more

Carlton Fields

So, What Was Reserved? Potential Claims Handling Pitfalls Under a Reservation

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It is common claims handling practice to use reservations of rights. Whether during an initial investigation, providing the insured with a defense, or even in the context of a denial of coverage, claims handlers routinely...more

Carlton Fields

Look No Further Than the Insuring Clause: Ill-Gotten Gains Do Not Constitute Covered “Loss”

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On August 26, 2019, the Eleventh Circuit Court of Appeals, applying Florida Law, held that ill-gotten gains do not constitute covered “loss” within the meaning of a D&O policy. In Philadelphia Indemnity Insurance Co. v. Sabal...more

Carlton Fields

Seventh Circuit Reverses Prior Ruling After Reexamining Exclusion Clause

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After a panel rehearing, the Seventh Circuit in Emmis Communications Corp. v. Illinois National Insurance Co., No. 18-3392 (7th Cir. Aug. 21, 2019), vacated a prior judgment and withdrew an opinion issued in July 2019,...more

Farella Braun + Martel LLP

Claims-Made Policy Note: Policy’s Use of Defined Terms May Expand or Limit Coverage Under Related Acts Provision

In an unpublished decision, the Ninth Circuit affirmed the Central District of California’s interpretation of the related acts provision in a professional liability policy, holding that related acts reported in a prior policy...more

Butler Weihmuller Katz Craig LLP

Recent Federal Court Decision May Alter the Reservation of Rights Landscape in South Carolina

The Current Precedent: Harleysville Group Insurance v. Heritage Communities, Inc. Only 15 months ago, in Harleysville Group Insurance v. Heritage Communities, Inc., the South Carolina Supreme Court fundamentally changed...more

Butler Snow LLP

Do you really need a court to tell you what the insurance policy covers? Litigating insurance coverage issues? When and how to...

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In part one of this blog I discussed intervention, one option insurers may have when coverage questions arise. As I noted in my prior blog, procedures for intervention vary by state, and some states simply do not allow an...more

Butler Weihmuller Katz Craig LLP

Assault And Battery Exclusion In Florida - Dead Or Alive?

A lawsuit filed by Danielle Roland against Klub Kutter’s Bar & Lounge alleged that on September 6, 2015, Roland was a “business invitee” at Klub Kutter’s in Fort Lauderdale, Florida....more

White and Williams LLP

Another Court Broadly Construes “Interrelated Wrongful Acts” Provision

A key component to any claims-made policy is the existence of an “interrelated wrongful acts” provision. Claims-made policies typically provide coverage only for claims first made during the given policy period. Interrelated...more

White and Williams LLP

Complex Insurance Coverage Reporter – February 2018

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An Insurer’s Guide to Reserving Rights: Tips for Avoiding Waiver and Estoppel - Insurers know all too well that the penalties for an ineffective reservation of rights letter can be severe...more

Butler Weihmuller Katz Craig LLP

Holy Harleysville! – The Rules Governing RORs, Intervention, and More in South Carolina Have Just Changed

For insurers, litigating third-party coverage disputes in South Carolina has always proved formidable. Insurers can be liable for “bad faith” even if there is no coverage; they may be required to pay an insured’s attorney’s...more

Rumberger | Kirk

What's a Coverage Defense? 11th Circuit Addresses Coverage Defenses under the Florida Claims Administration Statute

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When coverage is at issue, the interplay between a policy’s language and an insurer’s duties under the Claims Administration Statute, Florida Statute Section 627.426, becomes a key factor in claims handling for insurers. In...more

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