| Q&A of the Week |
Waste from Dogs Left Alone
A North Carolina subscriber recently asked the following question:
The landlord owns a home insured on a DP-3. The tenant dies off premises, leaving two dogs inside, unknown to the landlord. By the time the landlord discovers the presence of the dogs, waste is everywhere in the unit. The insurance company has denied the claim stating that the waste is a pollutant. What are your thoughts?
ANSWER: This answer is based on form DP 00 03 07 14. Exclusions in any policy are to be read narrowly. "Pollution" is defined as "any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed"; these items are generated by industrial actions and not bodily functions of humans or animals. The waste is a contaminant according to the definition on Merriam Webster Online of "to contaminate," which is "to soil, stain, corrupt, or infect by contact or association; to make inferior or impure by admixture."
While doggie waste will soil property, it does not fall in line with the examples given in the list. The principal of ejusdem generis applies, which is that where a class of things is followed by general wording that is not itself expansive, the general wording is usually restricted things of the same type as the listed items. Had the form writer wanted to include biological waste or other material it could have easily been done. The loss should be covered. Read More |
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| What's New This Week in FC&S |
ISO Dwelling Property Forms—Coverages
Insurance Services Office"s (ISO) dwelling property program was revised in 2014. Read More |
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| Litigation Watch |
Concurrent Proximate Cause Rule
The homeowners insurer filed a petition against the insured daycare providers, the child, and the child's parents for a declaratory judgment that the policy excluded coverage for the insureds' liability for negligent supervision of the child allegedly subjected to sexual contact by the insured's eleven-year-old son. This case is American Family Mutual Insurance Company v. Parnell, 478 S.W.3d 489 (2015).
The Parnells operated a daycare business in their home. A seven year old in their care was allegedly subjected to intentional unwanted sexual contact by the Parnells' son on multiple occasions. The mother of the seven year old filed a lawsuit against the Parnells for negligent supervision, alleging that the Parnells breached the duty to use ordinary care to protect the child against unreasonable risks of harm and this breach was the proximate cause of the child's injuries. Read More
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| Fraud of the Week |
Agent Fraud – Florida
AMOUNT: $1,000,000+
A Florida agent has been tried and convicted of stealing more than $1 million in premium payments from his clients. He is sentenced to seven years in prison and restitution of $1.3 million. Read More
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| FC&S Ask the Experts |
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