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TODAY'S TOP DEVELOPMENTS Wednesday, July 3, 2013

Industry news, expert analysis, and daily updates on the most significant insurance coverage legal developments—from the insurance and legal experts of The National Underwriter Company.


Commercial General Liability
Application's "Knowledge and Belief" Standard Dooms Insurer's Efforts to Rescind Policy for Alleged Misstatements
The U.S. Court of Appeals for the Eleventh Circuit has affirmed a district court's decision that an insurer was not entitled to rescind a policy based on material misstatements in the application, where the application contained a "best of knowledge and belief" standard and the insured had provided truthful answers to the questions as he had reasonably interpreted them. Read More

Automobile Insurance

In Absence of Insured's Affirmative Decision to Choose UM Coverage Lower than Statutory Default Amount, UM Limits Were the Default Amount
An appellate court in Georgia has reversed a trial court's decision and ruled that, in the absence of proof of an insured's affirmative decision to choose uninsured/underinsured coverage in an amount less than the statutory minimum, the amount of UM coverage was the statutory default amount, i.e., the bodily injury limits in the policy. Read More

Damage Caused by Dead Body's Decomposition in Apartment Excluded by Both Microorganism and Seepage Exclusions, Court Holds
A federal district court in Pennsylvania has ruled that both a microorganism and a seepage exclusion in an "all risks" policy issued to the owner of an apartment building barred coverage for property damage caused by the decomposition of a dead body in the bathroom of one of the apartments. The court first found that there was "uncontroverted evidence" that bacteria was present in the deceased person's bodily fluids and that it had caused the damage. Accordingly, it found, coverage for the damages was precluded by the policy's microorganism exclusion. It then decided that the seepage exclusion also barred coverage, determining that that there was "seepage" of the bodily fluids, which fluids were "designated or defined as toxic, dangerous, hazardous or deleterious to persons ... under ... Federal ... law." Read More

Commercial General Liability
"Your Product" Exclusion Bars Coverage – Even Where "Product" Allegedly Was Another Company's Goods
The U.S. Court of Appeals for the Fourth Circuit has ruled that the "your property" exclusion in a commercial general liability insurance policy barred coverage for claims that the insured had negligently converted and sold another company's product. Read More

View All Case Law Developments

Insurance Fraud

Florida Awards Tipsters $35,000 for Helping Uncover $3.7 Million in Insurance Fraud
Florida Chief Financial Officer Jeff Atwater has announced a total of $35,000 in rewards divided among four Floridians who provided what he said was "key information" that led to arrests and convictions in several major insurance fraud cases. According to CFO Atwater, the rewards were: $20,000 to a Ft. Myers individual whose assistance led to the conviction of 12 individuals in a personal injury protection ("PIP") fraud ring and the closure of 12 unlicensed accident clinics with $3 million in potential insurance fraud losses; $10,000 to a St. Petersburg individual whose assistance led to the conviction of an annuity scammer who defrauded nine elderly victims out of more than $580,000; and $5,000 divided between two Tampa individuals whose assistance led to the conviction of four PIP fraudsters and the closing of a PIP accident clinic. Read More


Association of British Insurers and U.K. Government Sign Memorandum of Understanding on Flood Insurance
The Association of British Insurers and the government of the United Kingdom have signed a memorandum of understanding on how to develop a not-for-profit scheme – "Flood Re" – that would "ensure flood insurance remains widely affordable and available." Read More

View All Legislative/Regulatory Developments
GEICO Names Bill Roberts President and COO Read More

DIMA Elects Board Members at Annual General Meeting 
Read More

Sun Life Financial Launches Voluntary Critical Illness and Cancer Employee Benefits 
Read More

Insurance Board Seeking President/CEO 
Read More

July 4 Continues as Deadliest Day on the Road for All Americans 
Read More

View All Industry News

Ask the Experts
Intentional Act and the Expected or Intended Injury Exclusion July, 2013


Browse our entire library of over 2,500 insurance resources and forms.

View Entire July Insurance Coverage Law Report
View Insurance Coverage Law Report Archives
60px_newMeyerowitz Steven A. Meyerowitz, ESQ.
Director, FC&S Legal
60px_newSpears Victoria Prussen Spears, ESQ.
Associate Director, FC&S Legal
FC&S Legal Editorial Advisory Board
Mitchell J. Auslander, Willkie Farr & Gallagher LLP
Carrie Cope, Schuyler, Roche & Crisham, P.C.
Anjali C. Das, Wilson Elser
John F. Finnegan, Chadbourne & Parke LLP
Michele L. Jacobson, Stroock & Stroock & Lavan LLP
Timothy P. Law, Reed Smith LLP
Donald S. Malecki, Malecki, Deimling, Nielander &
Associates, LLC
Cort T. Malone, Anderson Kill & Olick, P.C.
D. Milone, Kelley Drye & Warren LLP
Joseph P. Monteleone, Tressler LLP
Anne M. Murray, Rivkin Radler LLP
Jerold Oshinsky, Kasowitz, Benson, Torres &
Friedman LLP
Seth B. Schafler, Proskauer Rose LLP
David D. Thamann, The National Underwriter Company

FC&S Daily Legal Report ($795 annual subscription) is included as part of your subscription to FC&S Legal: The Insurance Information Center. FC&S Daily Legal Report and The Insurance Coverage Law Report are publications of The National Underwriter Company. For more information on how to subscribe to FC&S Legal, please contact customer service at 1-800-543-0874 or [email protected].

FC&S Legal: The Insurance Coverage Law Information Center

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