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29 Oct, 2014

2 Ways An Insurer Can Be Liable for Bad Faith

2018-04-23T20:59:42-05:00October 29th, 2014|Bad faith, Commercial General Liability (CGL), Midwest Insurance Law Guide|

1.  By failing to provide the policyholder with a proper and effective reservation of rights letter. 2.  By failing to handle the claim in good faith, even if coverage is later denied.  I agree with you.  Both situations are compelling, my dear Readers.  Nonetheless to protect your vulnerability we shall review only Rule #1 for today.  It is considered prudent in polite society to refrain from biting off more insurance meat than one can chew in a [...]

16 Jul, 2014

BAD FAITH BETWEEN PRIMARY & EXCESS CARRIER:

2018-04-23T20:59:42-05:00July 16th, 2014|Bad faith, Excess and umbrella policies, Midwest Insurance Law Guide|

What is the burden of proof? In most jurisdictions that allow such a claim, the case resounds in tort.  Thus, the standard burden of proof applies:  duty, breach of duty, causation and damages.  Today we will focus on the third element - causation. How is this proven?  Courts differ in specifics, but all agree that an excess carrier must show that the claimed damages are proximately caused by the primary's bad [...]

30 Dec, 2013

Primary Carrier v. Excess Carrier – What Duty Is Owed In A Loss?

2018-04-23T20:59:43-05:00December 30th, 2013|Bad faith, Excess and umbrella policies, Midwest Insurance Law Guide, Subrogation|

THE BOTTOM LINE:   An excess carrier has five viable claims against the primary carrier.      Both a primary and excess insurer contract with a policyholder for coverage, but they do not contract with each other.  Despite this lack of privity, when a verdict is rendered that exceeds the primary coverage, what claims can an excess insurer make against the primary insurer in order to avoid coverage? 1.  Breach of implied duty of [...]

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