Westlaw Topical Highlights: Insurance, July 22, 2016

July 22, 2016

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.

Underwriting: Misrepresentation on insurance application about monitored central smoke and temperature alarm precluded insurance coverage.  Certain Underwriters at Lloyd’s London v. Jimenez. 2016 WL 3265750 (Fla.App. 3 Dist.) Insureds’ application for homeowners insurance designated a monitored central station alarm as a protection device on the property, monitoring smoke, temperature and burglary. Insureds’ home actually had only a centrally-monitored burglary alarm. Insurance coverage following kitchen fire was precluded on the basis of this material misrepresentation, which was detrimentally relied upon by the insurer. The insurance policy was also rescinded by the insurer, which refunded the premiums paid to insureds and was obligated to pay interest to insureds. 2016 WL 3265750  (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).     

Liability: Stunted chicken growth from food additive to prevent coccidiosis was property damage and occurrence within meaning of CGL and umbrella policies.  Phibro Animal Health Corp. v. National Union Fire Ins. Co. of Pittsburgh 2016 WL 3747538 (N.J.Super.A.D.)

Bad Faith and Unfair Practices: Insured could recover treble damages for insurer’s denial of allegedly fairly debatable claim arising out of underwriting practices.  Home Loan Investment Company v. St. Paul Mercury Insurance Company 2016 WL 3610054 (C.A.10 (Colo.))

Arbitration and Appraisal: Appraisal panel’s contractually assigned task under real property insurance policy was limited to determining value of damaged property.  St. Croix Trading Company/Direct Logistics, LLC. v. Regent Ins. Co. 2016 WL 2975032 (Wis.App.)

Arbitration and Appraisal: Court lacked jurisdiction over insurer’s interlocutory appeal from denial of motion to confirm appraisal award under Colorado Uniform Arbitration Act.  KCOM, Inc. v. Employers Mutual Casualty Company 2016 WL 3902590 (C.A.10 (Colo.))

Underwriting: Misrepresentation on insurance application about monitored central smoke and temperature alarm precluded insurance coverage.  Certain Underwriters at Lloyd’s London v. Jimenez 2016 WL 3265750 (Fla.App. 3 Dist.)

Property: Earth movement exclusion in property insurance policy precluded coverage for large rock which fell onto insured’s cabin.  Parker v. Safeco Ins. Co. of America 2016 WL 3911544 (Mont.)

Excess and Umbrella: Insurer’s failure to provide notice of change to requirements of underlying limits to automobile policy provided basis to reform umbrella policy.  Gotkin v. Allstate Ins. Co. 2016 WL 3606912 (N.Y.A.D. 2 Dept.)

Liability: State’s suit against distributor to recover damages caused by prescription drugs was within coverage of CGL policy.  Cincinnati Insurance Company v. H.D. Smith, L.L.C. 2016 WL 3909558 (C.A.7 (Ill.))