Insurance | Virginia Lawyers Weekly

Below-Limit Settlement Can Trigger Excess Policy

By Deborah Elkins
Published: May 15, 2012
Tags: Insurance, Judge Leonie Brinkema, U.S. District Court - Eastern District

An Alexandria U.S. District Court dismisses defendant insurance carrier’s counterclaim against plaintiff business seeking a declaration that plaintiff’s excess insurance coverage has not been triggered because plaintiff has not exhausted its coverage with lower-tier insurance carriers, which did not pay their respective policies’ limits of liability.
Plaintiff Maximus holds professional liability insurance policies with five companies, [...]

Justice warns insurance case may paint courts ‘into a corner’

By Peter Vieth
Published: May 7, 2012
Tags: Insurance, Justice William C. Mims, Supreme Court of Virginia News

Insurance companies scored a win at the Supreme Court of Virginia with a coverage decision last month that could limit available insurance in some tort cases.
Revisiting an earlier opinion hailed by insurers, the court stuck to its position denying coverage to electric utilities blamed for greenhouse gases. But its opinion after rehearing used language calculated [...]

‘Pollution Exclusion’ Applies to Formula Loss

By Deborah Elkins
Published: May 1, 2012
Tags: Insurance, Justice S. Bernard Goodwyn, Supreme Court of Virginia

In this suit for insurance coverage for a multi-million dollar loss of plaintiff’s infant formula due to infiltration of filter elements into the formula during the manufacturing process, the Virginia Supreme Court upholds judgment for the carriers because the policies’ pollution exclusion endorsements do not limit the exclusion to traditional environmental or atmospheric contamination losses.
Plaintiff [...]

Global Warming Harm Not Policy ‘Occurrence’

By Deborah Elkins
Published: May 1, 2012
Tags: Insurance, Justice S. Bernard Goodwyn, Supreme Court of Virginia

A civil complaint filed by a Native village on an Alaska barrier island alleging an energy company’s intentional release of emissions caused harmful effects from global warming did not allege an “occurrence” as that term is defined in the energy company’s CGL policies with Steadfast Insurance Company, and the Supreme Court of Virginia affirms a [...]

Jury Verdict Triggers ‘In Fact’ Exclusion

By Deborah Elkins
Published: May 1, 2012
Tags: Insurance, Judge Leonie Brinkema, U.S. District Court - Eastern District

An Alexandria U.S. District Court says a former president of a mortgage company, convicted of conspiracy and fraud, is not entitled to coverage under the company’s Directors, Officers and Private Company liability policy for defense of executive’s criminal prosecution.
Defendant National Union Fire Insurance Company issued a Directors, Officers and Private Company liability policy to plaintiff’s [...]

Carriers balk at plan for payee notification

By Peter Vieth
Published: April 16, 2012
Tags: Insurance, Payee Notification, Virginia State Bar

Insurance companies have registered their opposition to the payee notification plan under consideration by a Virginia State Bar task force, but the chairman says the issue for the panel is “how” not “whether” a client protection statute will be proposed.
The payee notification plan would have insurance companies send letters to personal injury claimants to advise [...]

Carrier Must Defend Drywall Case

By Deborah Elkins
Published: April 11, 2012
Tags: Insurance, Judge Mark Davis, U.S. District Court - Eastern District

In an insurance carrier’s declaratory judgment action alleging it has no obligation to defend or indemnify defendant builder, Parallel Design and Development LLC, in a state court law suit filed by a homeowner complaining about the noxious effects of Chinese drywall used in his home, the Newport News U.S. District Court concludes the carrier does [...]

Carrier’s Dec Action Not Stayed

By Deborah Elkins
Published: April 6, 2012
Tags: Insurance, Judge Mark Davis, U.S. District Court - Eastern District

In an insurance company’s action for a declaratory judgment that it has no duty to defend or indemnify a builder against claims related to the use of Chinese drywall, the Norfolk U.S. District Court declines to stay this dec action pending resolution of a state court suit [VLW 011-8-084] filed by homeowners against the builder.
Plaintiff [...]

No Benefits After Nondisclosure of Medical Tests

By Deborah Elkins
Published: April 3, 2012
Tags: Insurance, Judge James R. Spencer, U.S. District Court - Eastern District

A decedent’s failure to disclose on a life insurance application his abnormal liver function tests, abnormal abdominal ultrasound and a doctor’s recommendation for a GI workup and his symptoms of sleep apnea, made material misrepresentations on his application, and his beneficiary is only entitled to a refund of the policy premium, says a Richmond U.S. [...]

Plaintiff recovers on bad faith claim against insurer – $13,187 Verdict

By Virginia Lawyers Weekly
Published: April 2, 2012
Tags: General District Courts, Insurance

Plaintiff was involved in a motor vehicle accident and incurred over $24,000 in medical bills. At the time of the accident she had insurance coverage with USAA which provided medical payments benefits up to $10,000. After repeated requests for payments and many denials for various reasons, plaintiff filed suit for breach of contract and demanded [...]

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