INCONTESTABILTY CLAUSE IN LIFE INSURANCE POLICY RENEWED UPON POLICY REINSTATEMENT

Insurance companies may rescind an insurance policy that was issued based upon fraud. When a party has been induced by fraud to enter into a contract, the party may rescind the contract and recover restitution or it may affirm the contract and recover damages caused by the fraud. Situations may... Read more →


INSURER LIABLE FOR PRE-TENDER DEFENSE FEES AND PREJUDGMENT INTEREST

I recently wrote an article published in the Connecticut Law Tribune about the Massachusetts Supreme Court’s decision in Boyle v. Zurich American Ins. Co., 36 N.E.3d 1229 (Mass. 2015), in which the Court held Zurich Insurance Company liable for a default judgment entered against its insured notwithstanding that the insured... Read more →


When is Property Damage Caused by Vandalism vs. Theft?

In a case of first impression in Connecticut, a Connecticut federal court recently addressed when property damage caused by intruders breaking into a building while stealing items from within the building constitutes damage from vandalism covered under a property policy versus damage from theft excluded under the policy. Mercedes Zee... Read more →


Extrinsic Evidence May Not be Used to Avoid Duty to Defend Additional Insured

A Connecticut trial court recently ruled that a liability insurer breached its duty to defend the City of Waterbury as an additional insured under a tenant’s liability insurance policy. The insurer failed to defend the city in a lawsuit seeking damages for personal injuries sustained by a patron of a... Read more →


Is an Excess Liability Insurer Required to Provide Coverage When the Primary Insurer is Insolvent?

Corporations and property owners faced with toxic tort and environmental claims arising from alleged exposure to toxins spanning many years often need to evaluate insurance coverage available under multiple insurance policies issued by different insurance companies over different years. Issues arise when one or more insurance companies who issued such... Read more →


Insured’s Detention of Employee in Home Office Following Intrusion Falls within Business Pursuits Exclusion in Homeowner Policy

The Connecticut Appellate Court recently interpreted a “business pursuits” exclusion in a homeowner’s umbrella liability policy broadly and held that a claim for coverage for tortious conduct related to or connected with one’s business pursuits falls within the exclusion and that a direct proximate causal connection to the business is... Read more →


Insurance Coverage Action Filed With Court But Not Timely Served Barred by Insurance Policy Suit Limitations Clause

In a previous entry I referenced the fact that there are many lawsuits pending in Connecticut against insurance companies that involve disputed claims arising from damage that homeowners in Northeast Connecticut have suffered due to defective concrete used in the construction of their homes. A Connecticut federal court recently dismissed... Read more →


Negligent Misrepresentation Claims Not Covered Under Homeowner Liability Policy

The Connecticut Appellate Court recently ruled that claims of negligent misrepresentation against the seller of a home arising from the sale of house with water drainage problems which were not disclosed to the purchasers were not covered under the seller's homeowner liability policy because the claimed economic damages were not... Read more →


Insurer Not Entitled to Dismissal of Claim Arising from Cracking and Decay of Basement Walls Under Homeowner Property Policy

According to recent Connecticut news reports, many homeowners in Northeast Connecticut have suffered damage to their homes caused by severe cracking of concrete in the basement walls of their homes that is believed to be the result of a chemical compound known as pyrrhotite in stone used as concrete Reports... Read more →