Posts Categorized: Insurance

Posted: July 19, 2017

Plaintiff’s Failure to Read Policy No Bar to Claim for Failure to Obtain Proper Insurance

On July 11, 2017, Justice Knipel of the Kings County Commercial Division issued a decision in 386 3rd Ave. Partners Ltd. Partnership v. Alliance Brokerage Corp., 2017 NY Slip Op. 31484(U), holding that an insured’s failure to read a policy was not a basis for dismissing the insured’s claim against a broker for failure to… Read more »

Posted: July 9, 2017

Insurers’ Repudiation of Liability Relieves Insured of Obligation to Cooperate

On June 27, 2017, the First Department issued a decision in J.P. Morgan Securities Inc. v. Vigilant Insurance Co., 2017 NY Slip Op. 05181, holding that an insurer’s repudiation of liability relieved the insured of its obligation to cooperate with the insurer, explaining: Defendants’ unreasonable delay in dealing with plaintiffs’ claims under the insurance contracts,… Read more »

Posted: June 16, 2017

Insurer Denied Summary Judgment for Failure to Show Material Misrepresentations by Insured

On June 7, 2017, the Second Department issued a decision in Indian Harbor Insurance Co. v SP&K Construction, 2017 NY Slip Op. 04427, denying an insurer’s motion for summary judgment for failure to show material misrepresentations by the insured in applying for insurance, explaining: To establish the right to rescind an insurance policy, an insurer… Read more »

Posted: June 13, 2017

Whether Subsequent Agreement Between the Insurance Company and the Insured Affected Arbitrability of Dispute Is A Question for the Arbitrator

On June 1, 2017, the Court of Appeals issued a decision in Town of Amherst v. Granite State Insurance Company, 2017 NY Slip Op 04321, ruling that the effect of a subsequent agreement to “litigate” on the arbitrability of a dispute under an insurance agreement should be decided by the arbitrator, rather than the Court…. Read more »

Posted: May 22, 2017

Insurance Law § 3105 Does Not Dispense with Requirement of Proving Reliance and Loss Causation

On May 16, 2017, the First Department issued a decision in Ambac Assurance Corp. v. Countrywide Home Loans, Inc., 2017 NY Slip Op. 03919, holding that Insurance Law Section 3105 does not dispense with the requirement to plead and prove reliance and loss causation, explaining: We agree with Countrywide that Ambac is required to prove… Read more »

Posted: April 26, 2017

Insurer Required to Provide Coverage Because of Flaws in its Letter Disclaiming Coverage

On April 19, 2017, the Second Department issued a decision in Unified Window Systems, Inc. v. Endurance American Specialty Insurance Co., 2017 NY Slip Op. 03036, holding that an insurer had to provide coverage because of defects in its letter disclaiming coverage, explaining: Endurance initially disclaimed coverage on the ground that the policy had been… Read more »

Posted: April 25, 2017

Communications With Insurance Brokers Not Privileged

On April 17, 2017, Justice Bransten of the New York County Commercial Division issued a decision in Mt. McKinley Insurance Co. v. Corning Inc., 2017 NY Slip Op. 30704(U), holding that an insured’s communications with its insurance brokers were not privileged, explaining: Corning did not produce approximately 50 confidential communications between and among it, its… Read more »

Posted: April 18, 2017

Extrinsic Evidence May be Admitted Prior to Exclusion Being Strictly Construed Against Insurer

On April 13, 2017, the First Department issued a decision in Heartland Brewery, Inc. v. Nova Casualty Co., 2017 NY Slip Op. 02908, holding that extrinsic evidence may be admitted prior to an exclusion being strictly construed against an insurer, explaining: The question of whether the terms of a contract, such as an insurance policy,… Read more »