Justia Insurance Law Opinion Summaries

The Supreme Court answered certified questions brought to it by the Ninth Circuit Court of Appeals as to whether, in Nevada, the insured or the insurer has the burden of proving that an exception to an exclusion of coverage provision applies.The Ninth Circuit asked whether, under Nevada law, the burden of proving the applicability of an exception to an exclusion of coverage in an insurance policy falls on the insurer or the insured and whether the party that bears that burden may rely on extrinsic evidence to carry its burden. The Supreme Court answered (1) the burden of proving the applicability of an exception to an exclusion for coverage in an insurance policy falls on the insured; and (2) the insured may rely on any extrinsic evidence that was available to the insurer at the time the insured tendered the defense to the insurer. View "Zurich American Insurance Co. v. Ironshore Specialty Insurance Co." on Justia Law

Petitioner AmGUARD Insurance Group (Carrier), insurer of Pelmac Industries, Inc. (Pelmac), appealed a New Hampshire Compensation Appeals Board (CAB) decision awarding workers’ compensation death benefits to the respondent, the decedent-employee’s estate. The Carrier argued that the decedent’s original June 5, 2018 injury was not a work-related injury, and, in the alternative, that his subsequent death by suicide did not result from the original injury. The Carrier also argued that the CAB violated its due process rights. Finding no reversible error, the New Hampshire Supreme Court affirmed. View "Appeal of Pelmac Industries, Inc." on Justia Law

After a fire at James and Suzanne Skinner's house, their insurer sought a judgment declaring that it did not owe either of them coverage. The circuit court entered summary judgment for Suzanne while the claim against James remained pending. A year later, with the claim against James still pending, the circuit court certified the judgment in Suzanne's favor as final and thus immediately appealable under Rule 54(b), Ala. R. Civ. P. Because the circuit court exceeded its discretion in doing so, the Alabama Supreme Court set aside the Rule 54(b) certification and dismissed this appeal. View "Alabama Insurance Underwriting Association v. Skinner" on Justia Law

The Supreme Judicial Court remanded these consolidated actions against two insurance companies to the superior court for further proceedings, holding that inherent diminished value (IDV) damages, if adequately proved, are recoverable under part 4 of the standard Massachusetts automobile insurance policy, 2008 edition.The three plaintiffs in these actions each owned an automobile that was involved in a collision with an automobile owned or operated by a party insured by either of the two insurance company defendants. Defendants compensated Plaintiffs' for the cost to repair their automobiles to their precollision condition but did not pay Plaintiffs for alleged IDV damages to the vehicles. The judge granted summary judgment in favor of Defendants. The Supreme Judicial Court vacated the judgment in part and affirmed in part, holding (1) the motion judge erred in allowing summary judgment with respect to Plaintiffs' claims of breach of contract; and (2) the motion judge properly granted summary judgment in favor of Defendants on Plaintiffs' unfair business practices claims. View "McGilloway v. Safety Insurance Co." on Justia Law

The Fifth Circuit affirmed the denial of insurance benefits in an action brought by plaintiff, seeking benefits in the amount of $300,000 following her husband's death. The court concluded that plaintiff's estoppel claim failed where her reliance on NOV's statements and deductions were not reasonable because the provision of the group life insurance policy that required her husband to complete an Evidence of Insurability form before coverage could begin was unambiguous. In this case, plaintiff's husband was on notice that coverage applied for during an annual enrollment period began at midnight following the later of two conditions: (1) the first day of the next plan year; and (2) the date Unum approved his evidence of insurability form for life insurance. Furthermore, the Summary of Benefits made clear that this was also the case for changes in coverage, and that NOV's representations were not Unum's. Therefore, the district court did not err in granting summary judgment to NOV on plaintiff's estoppel claim. View "Talasek v. National Oilwell Varco, LP" on Justia Law

The Eighth Circuit affirmed the district court's judgment holding that Safeco was not liable for coverage for a claim stemming from an accident involving an uninsured driver. In this case, the insured was killed when her motorcycle collided with a car driven by the uninsured driver. The court concluded that the district court did not err in determining that coverage for the accident was excluded under the insurance policy's motorcycle exclusion. Therefore, the policy unambiguously excluded coverage for the insured's accident. View "Safeco Insurance Co. of Illinois v. Palazzolo" on Justia Law

Peggy Baltar’s home was destroyed by wildfire in 2014. She had a new house built on the same property. Her insurer, CSAA Insurance Exchange (CSAA), paid the full amount charged by her contractor for construction of the new house. Altar sued for breach of contract and breach of the implied covenant of good faith and fair dealing. According to Baltar, CSAA breached the policy by, among other things, failing to provide her with a complete and accurate estimate for replacing the original house, which would have provided her with a budget for the construction of the new house. Without such a budget, she claimed she was forced to build a cheaper house than the one destroyed by the fire. She claimed this, and other asserted breaches of the policy, amounted to bad faith and entitled her to punitive damages. The trial court granted CSAA’s motion for summary judgment and entered judgment in favor of the company. Baltar appealed, but finding no reversible error, the Court of Appeal affirmed. View "Janney v. CSAA Insurance Exchange" on Justia Law

The Travelers Indemnity Company of Connecticut (Travelers) appealed an order sustaining demurrers filed by Navigators Specialty Insurance Company (Navigators) and Mt. Hawley Insurance Company (Mt. Hawley) to the third amended complaint. Travelers sought to recover from other insurance carriers some or all of the amounts it paid to defend TF McGuckin, Inc. in an underlying construction defect litigation. Travelers contended the trial court incorrectly concluded that the causes of action for equitable contribution and equitable indemnity failed to state a claim. Travelers also argued that, in the event the Court of Appeal contends the trial court properly sustained the demurrers, the appellate court should order that Travelers be given leave to amend its complaint to plead a claim for equitable subrogation. The Court of Appeal concluded the trial court erred in sustaining the demurrers to both the equitable contribution and equitable indemnity causes of action. Accordingly, judgment was reversed and the matter remanded for further proceedings. View "The Travelers Indemnity Co. v. Navigators Specialty Ins. Co." on Justia Law

Plaintiff-appellant Kevin McGrath challenged a superior court’s decision granting summary judgment to appellee Progressive Northern Insurance Company. Specifically, he argued the court erred in concluding that he was not “occupying” a vehicle, as that term is defined in the insurance policy at issue, when he was struck and injured by an underinsured motorist. Plaintiff was driving the vehicle’s owner in the owner’s vehicle to the airport. Plaintiff stopped at a gas station/convenience store on the way; he got out to pump gas and paid for it at the pump. The owner went inside the store for coffee. As the two returned to the car, but before they got inside, a pickup truck struck both plaintiff and the owner. Plaintiff filed for underinsured motorist benefits with the owner’s insurance company, Progressive, asserting he qualified for coverage under the terms of the policy. Progressive denied the claim, contending Plaintiff was not operating or occupying the car at the time of the accident. Plaintiff sued for a declaratory judgment on stipulated facts and no discovery. Summary judgment was entered in favor of the insurer. The Vermont Supreme Court affirmed, finding that while Plaintiff intended to enter the car, he did not, thus he did not occupy it under the terms of the policy at issue. View "Progressive Northern Insurance Company v. McGrath" on Justia Law

The First Circuit affirmed the judgment of the district court ruling against defendant Massachusetts Mutual Life Insurance Company (MassMutual) and against Plaintiff's class action claims in this insurance dispute, holding that the district court did not err.In 2003, MassMutual decided to cut the minimum guaranteed interest rates paid to purchasers of some of its annuities. MassMutual chose to change the interest rate by an endorsement that its staff warned would result in consumer confusion and introduce ambiguity into its annuity certificate. Plaintiff in this case believed that he had bought an annuity that guaranteed him three percent annual interest, but MassMutual claimed that it promised only 1.5 percent annual interest. The district court ruled against MassMutual and against Plaintiff's class action claims. The First Circuit affirmed, holding (1) the annuity did not unambiguously set the minimum guaranteed interest rate at 1.5 percent; (2) the district court did not err in denying Plaintiff's motion for class certification; and (3) MassMutual waived its challenge to prejudgment interest. View "Aronstein v. Massachusetts Mutual Life Insurance Co." on Justia Law