Problems viewing this email? Click Here October 22, 2015      Q&A of the Week Vehicle Engine Damage Question A Washington subscriber recently asked the following question: I am trying to determine if there is coverage for a loss. I also do not know if the mechanical breakdown exclusion applies. The loss arises out of an allegation that an insured employee placed diesel exhaust fluid in the gas tank of the 2014 Dodge Ram. As a result, the engine of the vehicle was damaged. The policy states: b. Specified Causes of Loss Coverage Caused by: (1) Fire, lightning or explosion; (2) Theft; (3) Windstorm, hail or earthquake; (4) Flood; (5) Mischief or vandalism; or (6) The sinking, burning, collision or derailment of any conveyance transporting the covered "auto". The policy also has an exclusion for loss due and confined to "a. Wear and tear, freezing, mechanical or electrical breakdown." ANSWER: If the insured only has the specified causes of loss coverage, this damage is not covered. Comprehensive coverage would apply. The mechanical breakdown exclusion would not apply since that refers to some problem inherent in the vehicle, that is, a mechanical breakdown that occurs from inside the vehicle itself and not due to some outside force. In this instance, the damage occurred because of the negligent actions of the employee and not because of some problem within the car itself. Read More    What's New This Week in FC&S Duty to Defend It is a long-held axiom that an insurer's duty to defend is broader than the duty to indemnify. But what encompasses that duty? Read More    Litigation Watch Number of Accidents The insurer appeals from a summary judgment granted to claimants. The question on appeal is whether the district court erred in determining that a series of events constituted three separate accidents. This case is National Liability & Fire Insurance Company v. Itzkowitz, 2015 WL 5332109. The relevant series of events began when a dump box attached to a dump truck struck and damaged an overpass owned by the thruway authority. After hitting the overpass, the dump box separated from the truck and landed in the highway. Between thirty seconds and five minutes later, the vehicle occupied by Itzkowitz struck the box. At some point between a few seconds and twenty minutes later, another vehicle occupied by other individuals struck the same dump box. The insurer, National Liability $ Fire argued that this series of events constituted one accident under the terms of the policy. The claimants countered that three accidents occurred. Read More    Fraud of the Week Multiple Claims for the Same Damage—Pennsylvania AMOUNT: Unknown A Pennsylvania man was sentenced to probation for submitting multiple claims to different insurers for the same damage to the same vehicle. Read More        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.    Maximize Your FC&S  Online Subscription! FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@alm.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.    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 The Zalma Insurance Claims Library   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 For more information about these titles Click Here

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