8TH CIRCUIT REJECTS "GOTCHA" POLICY CLAUSES. In the new case of Century Surety Co. v. Jim Hipner LLC, et al, No. 15-2120 (8th Cir. Nov. 23, 2016) the insurer denied a policyholder's claim due to late notice. The 8th Circuit panel chastised the insurer for its denial, stating that the insurance company was trying to have it both ways. What does this mean? Well, Dear Readers, let's dive in and [...]
The question for today, Dear Readers, is whether a primary carrier has a duty to notify an excess carrier of a loss that could potentially be covered by the excess carrier's policy. Of course you know, from our multiple and engaging discussions before, that the terms of the policy are what control the duties, obligations and actions of the insurers and the insured. So we should go straight to the insurance policy to [...]
THE BOTTOM LINE: BOTH! The policyholder has a duty to provide notice under the terms of the contract. The primary insurer has a duty under guidelines adopted by the industry. A standard form excess insurance contract contains a clause requiring the policyholder to notify the insurer of a loss. While the policyholder's duty may be excused - a topic for another blog post - courts have generally held that this notice is a condition precedent [...]
