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January 8, 2015 |
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Remembering Don Malecki
The insurance world in general and the National Underwriter Company in particular have lost a colleague and a friend. Don Malecki passed away on Friday, December 12th. Read More |
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| Q&A of the Week |
Blasting and Earth Movement
A Connecticut subscriber recently asked the following question:
Does the ISO HO–3 special form homeowners policy with the earthquake coverage endorsement provide coverage for a loss to the residence premises if blasting being conducted in the neighborhood caused cracking in the walls and windows of the homeowner's property?
ANSWER: An earthquake and earth movement are two different things. An earthquake is caused by sudden shaking of the ground caused by a disturbance deeper within the crust of the Earth. Most earthquakes occur when masses of rock straining against one another along fault lines suddenly fracture and slip. Blasting in the neighborhood does not constitute an earthquake, and therefor there is no coverage. Read More |
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| What's New This Week in FC&S |
What Happens After TRIA?
The Terrorism Risk Insurance Act (TRIA) is a federal law that was approved on November 26, 2002. The act created a federal backstop for insurance claims related to acts of terrorism. It was intended as a temporary measure to allow time for the insurance industry to develop its own solutions and products to insure against acts of terrorism. Read More |
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| Litigation Watch |
Defamation Claim and the Employment-Related Practices Exclusion
The issue in this case was whether the insurer had a duty to defend and indemnify four doctors who are defendants in a third-party defamation claim. This case is Khatib v. Old Dominion Ins. Co., No. 1D13-4652, 2014 WL 6851418 (Fla. App. Dec. 5, 2014).
This case stems from a dispute between Ashchi and Khatib and others. Khatib and his associates wrested control of the First Coast Cardiovascular Institute (FCCI) from Ashchi. Ashchi sued Khatib and the others, alleging that Khatib and his associates made baseless allegations and published defamatory statements against Ashchi.
The insurance policy under which Khatib sought coverage for the lawsuit was issued by Old Dominion, and the policy insured FCCI and its executive officers and directors, but only with respect to their duties as officers and directors. When Khatib sought coverage, Old Dominion denied the coverage based on the employment-related practices exclusion found in one of the endorsements. That exclusion states that there is no coverage for any claim for damages for personal injury caused by an offense arising out of an insured's business where the personal injury also arises out of any employment-related practices such as defamation.
Khatib sued for coverage and the trial court ruled in favor of the insurer. This appeal followed.
The District Court of Appeal of Florida, First District, noted that a cursory consideration of the facts in this case shows that at least some of the wrongs alleged against Khatib and the others were performed by them with respect to their duties as officers and directors. Some of the wrongs alleged occurred while they were either discharging their obligation at a shareholders meeting or executing other official duties. The court also found that there was no indication in the complaint that the alleged defamatory statements were employment-related at all.
The ruling of the trial court was reversed. The appeals court found that Old Dominion owes a duty of defense to Khatib and his associates. As for the duty to indemnify, the court said that this would be dependent on further factual developments through discovery or at trial.
Editor's Note: The District Court of Appeal of Florida ruled that, in this instance, the employment-related practices exclusion did not preclude coverage under Coverage B of the general liability policy. The court said that a defamatory utterance might easily arise out of a company's business while not being employment-related. Case law from around the country cited by the court supported this conclusion. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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| FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@ SummitProNets.com, to set one up! They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer. |
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| Contact Us |
As always, your comments and questions are welcome.
Contact us at:
FC&S Department
Phone: 800-543-0874
Fax: 859-692-2293
Email: eAlerts@nuco.com |
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| The Zalma Insurance Claims Library |
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Insurance Claims: A Comprehensive Guide
The only source you'll need to successfully handle insurance claims from start to finish. More Info |
Construction Defects Coverage Guide
Your single-source for identifying, insuring, investigating, prosecuting, and defending cases that result from construction defect claims. More Info |
Mold Claims Coverage Guide
This guide will allow you to handle mold insurance claims and litigation resulting from mold or fungi related disputes with confidence. More Info |
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| For more information about these titles Click Here |
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| FC&S Team |
Kelly Maheu, J.D.
Publisher
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Diane W. Richardson, CPCU
Consulting Editor
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Christine G. Barlow, CPCU
Managing Editor, FC&S
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Diana B. Reitz, CPCU, AAI
Consulting Editor
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David D. Thamann, J.D., CPCU, ARM
Managing Editor, FC&S Bulletins
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Katherine S. Caudill, J.D.
Manager of Product Development
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Susan L. Massmann, CPCU
Managing Editor, Electronic Publications
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Emily Brunner
Online Print/Production Editor
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Donald S. Malecki, CPCU
Contributing Editor
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Tosha Brinkman
Marketing Manager
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Barry Zalma, Esq., CFE
Contributing Editor
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Donna Cozatchy
Creative Director
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This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional service. If legal advice is required, the services of a competent professional person should be sought.
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