On Friday, August 9th, an Indiana Court of Appeals reversed a trial court’s ruling and allowed an insureds’ claim for bad faith based on misrepresentations in the insurer’s quote for coverage to proceed to trial.
Continue Reading Bad Faith Insurance Quote Defeats Summary Judgment
Misrepresentation
Alabama Jury Finds Policyholder Entitled To $10M Under “Key Person” Policy
By Lawrence J. Bracken II on
Posted in Industry News
An Alabama state court recently ruled that Protective Life Insurance wrongly denied California-based Apex Parks Group’s claim for unpaid key person death benefits. Apex, an amusement park company, insured its founder and CEO Alexander “Al” Weber Jr., who died unexpectedly in November 2016 while on vacation. Eight months earlier, Apex purchased “key person” insurance coverage from Protective. According to the complaint, Protective’s medical examiner had received Mr. Weber’s medical history prior to issuing the policy.
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Continue Reading Alabama Jury Finds Policyholder Entitled To $10M Under “Key Person” Policy
Product Recalls: Keeping Your Insurance Coverage Intact
By Michael S. Levine on
Posted in Property
Product recalls are on the rise in many industries. As regulatory and consumer protection standards are getting tougher, product supply chains are becoming more complex. This increases the risk of errors, defects and contamination at all levels of operation. Too often, these problems do not manifest themselves until after a product hits the market. All of this can lead to staggering expenses for food and product manufacturers facing the risks and realities of product recalls.
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Third Circuit Pours Salt In The Wound, Holds Heinz Policy Void Due To Application Misrepresentations
Posted on
Posted in Property
Last February, a Pennsylvania federal court ordered rescission of an accidental contamination and government recall insurance policy issued to the H.J. Heinz Company after Heinz sought $25 million from its insurer for its business interruption losses sustained due to lead in its baby cereal. The district court based the rescission on findings that Heinz materially misrepresented its claim history when it purchased the policy. Heinz claimed the incorrect information was an inadvertent error by its new Global Insurance Director. Although a jury agreed that Heinz’s errors were unintentional, the district court found that even unintentional material misrepresentations were sufficient to void the contract.
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Continue Reading Third Circuit Pours Salt In The Wound, Holds Heinz Policy Void Due To Application Misrepresentations