Westlaw Topical Highlights: Insurance, October 18, 2013

October 18, 2013

insuranceWestlaw Topical Highlights for Insurance provides summaries of significant federal and state judicial decisions and legislative and administrative activities affecting Insurance law.  A Westlaw subscription is required to access the documents linked from this page.

Sureties: Surety bonds are not “insurance contracts” within meaning of Pennsylvania statute authorizing damages for insurer’s bad-faith. Upper Pottsgrove Tp. v. International Fidelity Ins. Co.  2013 WL 5467696  (E.D.Pa.)  Under Pennsylvania law, as predicted by the district court, surety bonds are not “insurance contracts” within the meaning of a Pennsylvania statute authorizing an award of damages for an insurer’s bad faith in an action arising under an “insurance policy.” The parties to an insurance contract share a direct relationship, while a surety and a protected party do not. Also, although Pennsylvania’s Unfair Insurance Practices Act (UIPA) defined “insurance policy” to include suretyship, the bad-faith insurance statute created a private right of action, while the UIPA did not, UIPA’s remedial scheme was aimed at systemic violations, and, given the difference in the Acts’ remedial schemes, it was unnecessary to infer that General Assembly intended the Acts’ divergent penalties to apply to identical actors.  Upper Pottsgrove Tp. v. International Fidelity Ins. Co.  2013 WL 5467696  (E.D.Pa.)

Title: Letter from previous lender that it was owed no funds was not payoff statement on which title insurance agent could rely. Fidelity National Title Company v. First American Title Insurance Company 2013 WL 2286947 (Colo.App.)

Property: Delay of 15 days in notifying insurer of horse’s lameness violated equine mortality policy’s immediate notice provision.  Hauser v. Great American Assurance Company 2013 WL 5433499 (N.D.Ill.)

Liability: Common-law no-prejudice rule still applied although New York adopted “notice-prejudice” rule by statute. Indian Harbor Ins. Co. v. City of San Diego 2013 WL 5340380 (S.D.N.Y.)

Title: Exclusion did not apply to lender’s claim for defense under title insurance policy for first-priority mortgage lien.  Regions Bank v. Commonwealth Land Title Ins. Co. 2013 WL 5603469 (S.D.Fla.)

Liability: Each insured carried separate aggregate limit under medical malpractice insurance policies.  Medical Assur. Co., Inc. v. Weinberger 2013 WL 5407200 (N.D.Ind.)

Liability: Named insured that vacated shopping center premises was still “tenant” for purposes of landlord’s additional-insured status.  Federal Ins. Co. v. Hanover Ins. Co. 2013 WL 5339210 (N.D.Tex.)

Property: Manufacturer of garage door bracing system failed to satisfy zone-of-interest element to establish standing.  Office of Ins. Regulation and Financial Services Com’n v. Secure Enterprises, LLC 2013 WL 5584266 (Fla.App. 1 Dist.)