Liability Insurance Posts
Insurance coverage is premised on the concept of fortuity – a loss that occurs by chance or accident. When an insurance company issues a policy, it insures against a risk of possible loss, not a certainty. Insurance carriers do not intend to provide coverage for a loss that has already occurred, is in progress, or is substantially certain to occur. Yet, situations will arise where policyholders attempt to obtain insurance coverage for a loss that has already occurred.
Project Reporter Kyle D. Logue discusses Long Tail Claims.
At its meeting in Philadelphia on January 18 and 19, the Council reviewed drafts for several projects, with the following outcomes:
Here are some recent and upcoming events featuring topics that may be of interest to our readers.
When last we addressed the American Law Institute’s (ALI) proposed Restatement, Law of Liability Insurance, we reported that the organization decided at its May annual meeting to table final consideration of the document until 2018.
While ALI postponed the vote on final approval of its “Restatement of the Law, Liability Insurance” until May 2018, at least seven courts have not let the lack of a bow on it stop them from citing it. In a few instances, the Restatement was relevant in the court’s decision. Translation: there is good reason to become familiar with the Restatement, even if it’s not officially in the books.
In a decision that discussed the issue of rescission of insurance contracts in cases of material misrepresentations in insurance applications by high-risk insureds, the Superior Court of the State of California, County of Los Angeles cited the Proposed Final Draft of Restatement of the Law, Liability Insurance.
In late May 2017, The American Law Institute met to approve its new Restatement of the Law, Liability Insurance. This is the first Restatement to address the law of insurance coverage.
The American Law Institute Postpones Final Vote On The Liability Insurance Restatement But That Hasn’t Stopped Six Courts From Already Citing It
For those not closely following the ALI Liability Insurance Restatement, the project, and its process, can seem mysterious. This decision by the ALI, to delay the final vote, hardly solves this problem. So, what does all this mean?
In Dalecroft Properties Ltd v. Underwriters  EWHC 1263 (Comm), Mr. Richard Salter QC (sitting as a Deputy Judge of the High Court) confirmed the defendant insurers’ right to avoid a property insurance policy following various misrepresentations relating to the state of repair of the insured property and non-disclosures relating to acts of vandalism to the property.