Insurance Bad Faith And Consumer Protection Act Claims Against Individual Insurance Adjusters Deemed Valid

November 6, 2018
Ceslie Blass - Ahlers Cressman & Sleight PLLC Blog

The Washington State Court of Appeals has further tipped the scales in favor of insureds in insurance bad faith and Consumer Protection Act (CPA) litigation. The Court of Appeals held in Keodalah v. Allstate Ins. Co.[1], that (1) RCW 48.01.030 imposes a duty of good faith on “all persons” engaged in the business of insurance, and (2) the CPA does not require a contractual relationship to exist between the parties in order for a claim to be valid. In other words, bad faith and CPA claims against an individual insurance adjuster will be viable.

Ms. Blass may be contacted at ceslie.blass@acslawyers.com


“Crypto-Property:” Ohio Court Says Crypto-Currency is Personal Property Under Homeowners’ Policy

October 30, 2018
Michael S. Levine - Hunton Insurance Recovery Blog

In what appears to be a case of first impression, an Ohio trial court ruled in Kimmelman v. Wayne Insurance Group, that the crypto-currency, Bitcoin, constitutes personal property in the context of a first-party homeowners’ insurance policy and, therefore, its theft would not be subject to the policy’s $200 sublimit for loss of “money.”

Mr. Levine may be contacted at mlevine@HuntonAK.com


Denial of Coverage for Late Notice Upheld

October 23, 2018
Tred R. Eyerly - Insurance Law Hawaii

The insurer's denial of coverage for receipt of late notice of a claim was upheld by the federal district court. Evanston Ins. Co. v. Yeager Painting, LLC, 2018 U.S. Dist. LEXIS 130316 (N.D. Ala. Aug. 3, 2018).

Yeager Painting was in the business of sandblasting and painting. Yeager Painting was hired as a subcontractor to sandblast water tanks in the city of Pelham, Alabama. Yeager Painting subcontracted the work to Delgado Painting. An employee of Delgado Painting was seriously injued when he fell 25 to 30 feet to the ground from a man-lift basket.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Florida Supreme Court’s Application of Insurance Bad Faith in Third-Party Context

October 16, 2018
David Adelstein - Florida Construction Legal Updates

What happens when an insured receives a judgment in excess of his/her insurance policy limits when the matter could have been resolved within the insured’s policy limits? Think of a personal injury scenario where the insured received a claim by an injured party and tenders the claim to his/her insurer. What if that matter could get resolved within policy limits but it does not and exposes the insured to a judgment in excess of the policy limits? This could be where insurance bad faith comes into play in the third-party liability insurance context based on the totality of circumstances—the insurer acted in bad faith in failing to settle this third-party claim and exposed the insured to a judgment in excess of the insured’s policy limits.

Mr. Adelstein may be contacted at dma@kirwinnorris.com


Uncertainty About Hurricane Florence’s Impact Zone Has Caused Widespread Event Cancellations. Insurance May Cover The Financial Loss

October 9, 2018
Michael S. Levine & Tae Andrews - Hunton Andrews Kurth

Hurricane Florence has yet to make landfall, but the storm has already wreaked havoc on this weekend’s college football schedule, concerts, and other events. West Virginia and NC State postponed their Saturday game indefinitely. Rescheduling remains to be seen. UCF and North Carolina cancelled their game outright, as did East Carolina and Virginia Tech. Other teams relocated their games or changed dates and start times, with many offering free tickets to fans who can accommodate the last-minute changes. The NFL also is keeping a close eye on the situation, as the storm could impact Sunday’s game between the Washington Redskins and the Indianapolis Colts at FedEx Field. Meanwhile, non-sporting events also have been cancelled, including Alan Jackson’s concert at the North Charleston Coliseum, the Zac Brown Band’s concerts in Charlotte and Raleigh, and J. Cole’s Dreamville Festival, which alone will require the refunding of some 30,000 tickets.

Reprinted courtesy of Michael S. Levine, Hunton Andrews Kurth and Tae Andrews, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Andrews may be contacted at tandrews@HuntonAK.com


The Right Endorsement: Additional Insureds

October 2, 2018
Christine Cowan - Construction Executive

Adding other parties as an additional insured on to a general liability policy has become increasingly popular during the past 20 years. Almost every contract, especially in the construction industry, includes this requirement. To keep up with demand and pressure from the insurance industry, the Insurance Services Office has issued various versions of the standard endorsements, CG 20 10 and CG 20 37, which have not always been advantageous to additional insureds, especially in the construction industry. Therefore, it is important to review construction contracts in full and pay special attention to the wording revolving around the additional insured endorsements.

Reprinted courtesy of Christine Cowan, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Hurricane Florence Causes Estimated $2.5 Billion in Insured Losses

September 25, 2018
Ivan Levingston - Bloomberg

Hurricane Florence, which made landfall in North Carolina Friday as a Category 1 storm, is estimated to have caused insured losses totaling $2.5 billion, according to catastrophe modeler Karen Clark & Co.

That figure includes privately insured wind, storm surge and inland flooding damage, while excluding losses covered under the federal government’s National Flood Insurance Program, the Boston-based company said in its advisory.


Assignment of Benefits Provision in Homeowner’s Policy is Enforceable

September 18, 2018
David Adelstein - Florida Construction Legal Updates

When it comes to property insurance claims, particularly those under a homeowner’s insurance policy, an insured will oftentimes assign its benefits under the policy to a restoration contractor. The request for the assignment may likely be prompted by the contractor that does not want to perform the work without the assignment of benefits. The assignment of benefits (also known by the acronym “AOB”) allows the third-party contractor (as the assignee of the insured) to sue the insurer directly for benefits under the policy associated with the restoration work.

Mr. Adelstein may be contacted at dma@kirwinnorris.com


SBA Cuts Surety Guarantee Fees, for One Year

September 10, 2018
Tom Ichniowski – Engineering News-Record

The U.S. Small Business Administration will be trimming the fees it charges for its surety bond guarantees for one year, the first reduction in the charges in 12 years.

Mr. Ichniowski may be contacted at ichniowskit@enr.com


Over One Hundred Charged in Fraudulent Sandy Relief Fund Applications

September 5, 2018
David Suggs – Bert L. Howe & Associates, Inc.

Recently, the number of false claims in New Jersey Sandy Relief Fund Applications has grown to 120, according to Property Casualty 360. Furthermore, “[t]he 120 people charged by the Attorney General’s Office allegedly were responsible for diverting more than $8 million in relief funds.”

Attorney General Gurbir S. Grewal explained what has been done to reclaim the alleged diverted funds: “We have recovered over $2.2 million through these prosecutions and we also have sent a strong message that should deter this type of fraud during future disaster relief efforts.”


Insurer's Motion to Dismiss Case for Collpase Coverage Denied

August 29, 2018
Tred R. Eyerly - Insurance Law Hawaii

In yet another collapse case from Connecticut, the federal district court denied the insurer's motion to dismiss. Maki v. Allstate Ins. Co., 2018 U.S. Dist. LEXIS 102708 (D. Conn. June 20, 2018).

In February 2016, the insureds noticed a series of cracks throughout the basement walls of their home. The insureds believed the problem was due to tainted concrete, likely obtained from the J.J. Mottes Concrete Company, which had caused similar problems in homes throughout Connecticut. A chemical compound in the Mottes concrete would eventually cause the home to cave in on itself, and there was no known method to prevent the continuing deterioration.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Insurer's Denial of Claim for Faulty Workmanship Does Not Survive Summary Judgment

August 21, 2018
Tred R. Eyerly - Insurance Law Hawaii

The court granted the insured's motion for summary judgment despite the insurer's denial based upon faulty workmanship. Engineered Structures, Inc. v. Travelers Prop Cas. Co. of Am., 2018 U.S. Dist. LEXIS 102822 (D Idaho June 18, 2018).

Engineered Structures, Inc. (ESI) contracted with Fred Meyer Stores, Inc. to build a fuel center. The contract called for the installation of two underground storage tanks (USTs) for storage and sale of fuel. ESI contracted with 3 Kings Environmental, Inc. (3 Kings) to install the Liquid Fuel Distribution and Electrical systems.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Arizona Upholds Assignment of Post-Loss Benefits

August 15, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Arizona Court of Appeals upheld the insured's assignment of benefits despite the policy's anti-assignment provision. Farmers Ins. Exchange v. Honorable David Udall, 2018 Ariz. Ct. App. LEXIS 94 (Ariz. June 12, 2018).

Farmers issued homeowners' policies to four homeowners who later required water damage mitigation and restoration services. Each of the policies included an anti-assignment provision stating that the insured's "interest in this policy may not be transferred o another person without [Farmers'] written consent." Each insured, however, signed a "Work Order Agreement & Assignment of Benefits" authorizing the remediation company, EcoDry Restoration of Arizona, LLC, to perform emergency water mitigation services and then assign insurance rights under the policies to EcoDry. The assignment authorized and instructed the insurance company to pay directly to EcoDry the amount shown in the final billing for work done by EcoDry.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Is the New York Scaffolding Law Driving Up Insurance Costs?

August 8, 2018
Beverley BevenFlorez-CDJ STAFF

Construction Drive reported that critics are blaming New York’s Scaffold Safety Law for insurance increases for “New York City's $11.2 billion East Side Access tunnel has risen 557% from original cost estimates to $584 million.” However, others are claiming “much of the increase is due to a decade's worth of project delays, and insurance costs have risen along with the extended coverage period. In addition, as part of its last insurance policy renewal, the authority has to pay a $15 million penalty to its insurer because personal injury claims exceeded the policy's $40 million cap.” Construction Dive suggested “[i]f personal injury claims for falls is what is driving up a construction company's insurance costs, then that contractor should probably evaluate its safety program, and implement policies that will reduce the rate of accidents.”


Current Trends in Construction Insurance Industry

July 31, 2018
Beverley BevenFlorez-CDJ STAFF

Insurance Journal interviewed construction insurance professionals to see what’s new in the market. First, there seems to be confidence in the construction market as a whole: “It’s a healthy construction market outlook,” Danette Beck, national construction practice leader at USI, an insurance brokerage and consulting firm, told Insurance Journal. “There aren’t any projections right now that there is going to be a slowdown.” Other topics discussed include Meaningful Risk Management, Construction Utilizing Technology, and Coverage Trends.


Questions Home Buyers Should Ask Regarding Coastal Flooding

July 21, 2018
Beverley BevenFlorez-CDJ STAFF

According to Property Casualty 360, coastal flooding issues are on the rise: “A national research analysis from the Union of Concerned Scientists (UCS) predicts that 311,000 coastal homes are at risk of flooding, which is 26 times or more per year within the next 30 years, a phenomenon called a “chronic inundation.” By 2100, that number will exceed 2.4 million homes in the U.S.” The article recommends home buyers to “ask smart questions about coastal and tidal flooding.”


Can Workers With Sun-Related Skin Issues File Workers' Compensation Claims?

July 18, 2018
Scott Van Voorhis, Scott Blair, & Jonathan Barnes – Engineering News-Record

Shade tents and frequent water breaks are part of the strategies Kris Comon uses for dealing with 100°-plus temperatures and a punishing sun at a two-story building being constructed in Phoenix. Comon is project manager for UEB Builders, prime contractor for the Helios Education Foundation, and to beat the heat, work starts at 6 a.m. and ends in the early afternoon, he says.

Reprinted courtesy of ENR attorneys Scott Van Voorhis, Scott Blair and Jonathan Barnes
Mr. Blair may be contacted at blairs@enr.com


Hurricane-Proof Homes Are Real. Why Isn’t Anyone Buying Them?

July 11, 2018
Christopher Flavelle - Bloomberg

In a private waterfront resort on the northern tip of Key Largo, nestled between tropical forest and the Caribbean, Eric Soulavy is marketing luxury for the age of climate change: Coastal homes that are all but hurricane proof.

The Florida-based developer is finishing a three-story condominium project with overlapping defenses, a hydrological Fort Knox where prices start at $5 million for a four-bedroom apartment.


Hurricane Prevention Reduces Business Loss Exposures

July 2, 2018
Beverley BevenFlorez-CDJ STAFF

For every dollar spent on Hurricane protection, businesses saved $105, according to research completed by FM Global, as reported by Property Casualty 360. The statistic was derived from “over 10,000 wind- and flood-related investments and their associated reduction in property loss and business disruption exposure for 1,800 clients around the world from 2008 to 2017.” FM Global is a commercial and industrial property insurer.


Issues of Fact Require Denial of Insurer's Summary Judgment Motion in Collapse Case

June 13, 2018
Tred R. Eyerly - Insurance Law Hawaii

The insurer's motion for summary judgment to establish there was no coverage for the collapse of the front wall in the insured's home was denied. Desvarieux v. Allstate Prop. & Cas. Ins. Co., 2018 US. Dist. LEXIS 71230 (E.D. Pa. April 26, 2018).

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Coverage Found for Water Damage Caused by Collapsed Plumbing System

June 6, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Eleventh Circuit, following Florida law, reversed the district court's granting of summary judgment to the insurer for water damage caused by a collapse in the dwelling's plumbing system. Cameron v. Scottsdale Ins. Co., 2018 U.S. App. LEXIS 9800 (11th Cir. April 16, 2018).

A pipe in the plumbing system of the insureds' dwelling collapsed, causing water damage to the interior and necessitating additional damage to access and repair the plumbing. The cause of the plumbing problem was the age of the plumbing system that carried wastewater out of the building.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Hawaii Legislature Passes Six Insurance-Related Bills

May 30, 2018
Tred R. Eyerly - Insurance Law Hawaii

The 2018 session of the Hawaii Legislature recently concluded after enacting six insurance-related measures. Each of the bills have been sent to the governor for signature.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Coverage for Loss Caused by The Big Island's Volcanic Eruptions

May 24, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Puna District of the Big Island of Hawaii continues to experience volcanic eruptions causing extensive loss of property. The recent eruptions have opened 14 separate vents. covering 104 acres of forest land and home sites with lava in the Leilani Estates neighborhood, located approximately ten miles from the source at the Puu Oo Crater. Twenty-seven homes have been destroyed. Most of the neighborhood's 1800 residents have moved from the area. The damage is approaching the $1.9 million threshold for the federal government to declare a major disaster area.

Mr. Eyerly may be contacted at te@hawaiilawyer.com


Insurer Must Defend Claims of Faulty Workmanship That Damage Another's Work

May 16, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Nebraska Court of Appeals ruled that the insurer must defend claims of faulty workmanship causing property damage to something other than the insured's work product. Grinnell Mut. Reinsurance Co. v. Fisher, 2018 Neb. App. LEXIS 47 (Neb. Ct. App. March 13, 2018).

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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