Westlaw Topical Highlights: Insurance, March 4, 2016

March 4, 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.

Excess and Umbrella: Self-insured retention was “other applicable liability insurance” under other insurance clause, and thus was primary and not excess insurance.  Burgraff v. Menard, Inc. 2016 WL 717684 (Wis.) A store’s self-insured retention under its commercial general liability (CGL) policy constituted “other applicable liability insurance” under the other-insurance clause in its customer’s automobile policy, which provided that if there were other applicable liability insurance, the automobile insurer would pay only the proportion that its limit of liability bore to the total of all applicable limits. Thus, the self-insured retention would be treated as primary coverage rather than excess coverage in an action by the customer for injuries allegedly sustained when a store employee loaded materials onto the customer’s trailer. The store gained the benefit of lower premiums with the risk of self-insured retention, and the CGL policy explicitly stated that its excess coverage attached only after the store’s self-insured retention had been exhausted. 2016 WL 717684. (The full-text of the rest of the Topical Highlights is available within Thomson Reuters Westlaw, subscription required).   

Automobile: Insured is entitled to determination of liability and damages in uninsured motorist case prior to filing bad faith action.  Fridman v. Safeco Ins. Co. of Illinois 2016 WL 743258 (Fla.)

Jurisdiction: District court in Massachusetts had jurisdiction over insured’s New York-resident widow, on claim for reimbursement under group life insurance policy.  Ng v. Prudential Insurance Company of America 2016 WL 424956 (D.Mass.)

Arbitration and Appraisal: Insurer’s appointed special deputy receiver was required to arbitrate common law claims against insurer’s attorney for breach of fiduciary duty.  Rich v. Cantilo & Bennett, L.L.P. 2016 WL 611804 (Tex.App.-Austin)

Automobile: Minnesota had most significant relationship to claim for UIM benefits.  Kipling v. State Farm Mutual Automobile Insurance Company 2016 WL 409314 (D.Colo.)

Liability: Underlying claim did not seek damages for wrongful diversion of funds from client service agreements, and thus was not covered under liability policy.  Payroll Management, Inc. v. Lexington Ins. Co. 2016 WL 791617 (C.A.11 (Fla.))

Liability: insured waived any obligation that insurer may have had under “pay on behalf of” provision to make payment directly to underlying claimants.  United National Insurance Company v. Indian Harbor Insurance Company 2016 WL 482708 (E.D.Pa.)

Judgment: Insurer was entitled to credit against final judgment for advance payment made to insured in uninsured motorist suit.  Doe v. Pak 2016 WL 364949 (W.Va.)

Liability: Ingredient suppliers’ policies provided no coverage for liability for providing defective ingredient for probiotic supplement tablets.  Wisconsin Pharmacal Co., LLC v. Nebraska Cultures of California, Inc. 2016 WL 785203 (Wis.)

Life: requirement of disclosure of, and consent to, compounded interest as applied to insurance companies had not been repealed.  Wishnev v. Northwestern Mutual Life Insurance Company 2016 WL 493221 (N.D.Cal.)