Bad Faith
California Court of Appeal Finds Reinsurance Brokers Cannot be Sued for Breach of Fiduciary Duty PDF Print
Bad Faith
Written by CBM   
Friday, 13 May 2011 00:00

In Workmen’s Auto Ins. Co. v. Guy Carpenter & Co, Inc., No. B211660 (May 4, 2011), the California Court of Appeal (Second District) affirmed a judgment finding that a reinsurance broker did not owe a fiduciary duty to its client, an insurance company. 

The court recognized that California agency law imposes a fiduciary duty on brokers when insurance law does not.  The court resolved that it must preserve the status quo of insurance law and not impose a new burden on insurance brokers.  As a result, the court found that insurance brokers cannot be sued for breach of fiduciary duty.  

Attachments:
 Workmens Case[ ]135 Kb
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9th Circuit Affirms Summary Judgment for Insurer Where Insured Failed to Comply with Policy's Pilot Warranty PDF Print
Bad Faith
Written by CBM   
Friday, 04 March 2011 00:00

In Trishan Air Co. v. Federal Ins. Co., 09-55317 (Feb. 16, 2011), the Ninth Circuit affirmed a summary judgment in favor of the insurer, finding (1) the policyholder did not strictly comply with a policy warranty as required by California law, and (2) the insurer was not in bad faith due to a genuine dispute between the parties regarding policy compliance.

Attachments:
 Trishan Air[ ]110 Kb
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California Court of Appeal Finds Tortious Bad Faith Claims Subject to 3 Year Statute of Limitations Based on Policy Language PDF Print
Bad Faith
Written by CBM   
Friday, 11 February 2011 15:30

In Blue Shield of Calif. Life & Health Ins. Co. v. Superior Court (Kawakita), 11 C.D.O.S. 1855 (Cal. Ct. App. Feb. 9, 2011), the California Court of Appeal for the Second District found a policyholder’s tortious bad faith claim against her health insurer was not subject to a two-year statute of limitations because language in the policy granted three years to sue for any matter arising out of the policy.  

Attachments:
 Blue Shield[ ]161 Kb
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7th Circuit Finds an Insurer's Failure to Advise Policyholder When a Claim Might Exceed Policy Limits Could Constitute Bad Faith PDF Print
Bad Faith
Written by CBM   
Friday, 21 January 2011 14:02

In R.G. Wegman Construction Co. v. Admiral Ins. Co., No. 09-2-22 (7th Cir. January 14, 2011),  Judge Posner of the Seventh Circuit Court of Appeals held that, under Illinois law, an insurer has a duty to notify the policyholder when it obtains information indicating a claim could exceed the policy limits. When an insurer fails to do so and a verdict or settlement exceeds the policy limits, the insurer could be in bad faith.

Attachments:
 Wegman v. Admiral Case[ ]124 Kb
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California Appellate Court Finds Insurer's Coverage Denial Cannot Be Retroactively Unreasonable When Substantial Case Law Supports Insurer's Position at the Time of Denial PDF Print
Bad Faith
Thursday, 06 August 2009 09:54

In Griffin Dewatering Corporation v. Northern Insurance Company of New York, 09 C.D.O.S. 9790 (Cal. Ct. App. July 31, 2009), a California appellate court reversed a judgment in favor of a policyholder and held than insurer's reasonable, albeit incorrect, denial of coverage could not be rendered retroactively unreasonable - and thus a breach of contract - as the result of a California Supreme Court decision issued after the insurer's denial.

Attachments:
 Griffin.pdf[ ]167 Kb
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