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TODAY'S TOP DEVELOPMENTS Thursday, June 20, 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.


Homeowner’s Insurance
“Actual Cash Value” Policy Did Not Include Cost of Upgrades to Meet Post-Loss Building Code Changes, Court Finds
A federal district court in Arizona has ruled that an insurer that issued owners of a mobile home a policy that covered property losses on an “actual cash value” basis was not obligated to pay for the cost of upgrades to comply with post-loss building code changes. The court ruled that the “plain and ordinary meaning” of the phrase “actual cash value” did not include the cost of repairs to upgrade damaged property to comply with building codes that were not in place at the time that the property was damaged. The court pointed out that the policy specified that actual cash value was to be calculated “at the time of the loss.” In the court’s view, “[n]o plain reading of this provision would stretch it to encompass the cost of repairing the property to a better condition than it was in at the time of the loss. Had the loss not occurred, the [insureds] would have had to pay for the upgrade to bring their mobile home up to code themselves.” Read More

Personal Umbrella
Georgia Supreme Court Finds Requirements of Georgia Uninsured Motorist Law Inapplicable to Renewed Umbrella Policy
In response to two certified questions from the U.S. District Court for the Northern District of Georgia, the Georgia Supreme Court has ruled that neither the offer/rejection requirements of the Georgia Uninsured Motorist Act nor the statute’s notice requirements applied to an umbrella insurance policy renewed on or after January 1, 2009. Read More

Homeowner’s Insurance
Arson for Insurance: Anatomy of a Conviction
How much circumstantial evidence is sufficient to uphold an arson conviction of an insured charged with starting a fire in his home in an effort to collect insurance? The Supreme Court of Wyoming explained, in Montee v. State of Wyoming, No. S–12–0166 (Wyo. June 17, 2013) – a decision in which it found sufficient evidence to affirm the conviction of Nicholas M. Montee on a charge of second degree arson. Read More

Professional Liability Insurance
Appeals Court Rules that Accounting Malpractice Action Alleged a Single Claim under Firm’s Policy
An appellate court in California has affirmed a trial court’s decision that an underlying action against an accounting firm and a partner at the firm alleged a single claim under the applicable policy, thus triggering the per-claim limit of liability only and not the aggregate policy limit. The case is Flowers v. CAMICO Mutual Ins. Co., No. A134890 (Cal. Ct. App. June 12, 2013).  Read More

View All Case Law Developments

Alternative Risk and Captives

Cook Islands Passes Captive Insurance Act
As part of its long term strategy to grow the international financial services industry through new services and new client markets, the Parliament of the Cook Islands has passed the Captive Insurance Act 2013. Read More

Health Insurance
Emergency Regulation Requires California Health Insurers to Provide Coverage for Essential Health Benefits
California Insurance Commissioner Dave Jones has approved an emergency regulation filed by the Department of Insurance with the Office of Administrative Law requiring health insurers to cover all essential health benefits for new policies in effect after January 1, 2014. The categories of benefits that make up the essential health benefits coverage include ambulatory patient services; emergency services; maternity and newborn care; prescription drugs; hospitalization; laboratory services; pediatric services, including oral and vision care; rehabilitative and habilitative services and devices; and preventive and wellness services and chronic disease management. Read More

View All Legislative/Regulatory Developments
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
Law Firms See Rise in Malpractice Claim Frequency and Severity, Survey Finds Read More

Andrew Torrance Named President and Chief Executive Officer of Fireman’s Fund Insurance Read More

ACE Appoints Arturo Martinez to Lead Latin America Surety Operations Read More
USA Business Insurance Announces Drywall Contractor Insurance Designed to Protect Smaller Sub-Contractors Read More
Lori Dickerson Fouché Joins Prudential Group Insurance as President and Chief Operating Officer Read More

View All Industry News
Insurance Forms & Resources

Abuse or Molestation Exclusion Explained
June, 2013


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

Employment Practices Liability Insurance Read More

HarrisMartin’s Superstorm Sandy Insurance Coverage Litigation Conference Read More

Asbestos Claims & Litigation  
Read More

View Full Calendar


Focus On: Inadvertent Omission of Exclusion Created Only the Appearance of Coverage, Circuit Finds in Upholding Decision Overturning Jury Verdict in Insured’s Favor  Read More

State Responses to Superstorm Sandy and Other Natural Disasters: Implications for Ceding Companies and their Reinsurers  Read More

Insurance Certificates and Evidence of Insurance for Lease Transactions  Read More

View Entire June Insurance Coverage Law Report
View Insurance Coverage Law Report Archives


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