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Posts Categorized: Insurance

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 »

Posted: February 27, 2017

Equitable Subrogation Not Available Against Third Party Whose Liability Arises By Contract; Case Remanded For Consideration of Contractual Subrogation Claim

On January 17, 2017, the First Department issued a decision in Millennium Holdings LLC v. Glidden Co., 2017 NY Slip Op. 00258, holding that the doctrine of equitable subrogation did not permit an insurance carrier to recover against a third-party whose liability to the insured arose only by contract, and remanding the case to the… Read more »

Posted: February 16, 2017

Broad Coverage Exclusion Does Not Render Insurance Policy “Illusory” Where Some Coverage Is Afforded

On February 14, 2017, the Court of Appeals issued a decision in Lend Lease (US) Construction LMB Inc. v. Zurich American Insurance Co., 2017 NY Slip Op. 01141, holding that a broad coverage exclusion in a builder’s risk insurance policy did not render the policy “illusory” because it did not “defeat all of the coverage… Read more »

Posted: February 9, 2017

Court of Appeals Accepts Certified Question on Interpretation of Reinsurance Contracts

On January 10, 2017, the Court of Appeals accepted a certified question from the Second Circuit in Global Reinsurance Corporation of America v. Century Indemnity Company, concerning the interpretation of reinsurance contracts. At issue is whether the amount specified in a “Reinsurance Accepted” clause of a reinsurance certificate is an absolute cap, applying both to… Read more »