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Posts Categorized: Insurance

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 »

Posted: December 24, 2016

Insurance Law § 3404 Does Not Bar Policy Condition That Insured Building Have Sprinklers

On December 9, 2016, Justice Oing of the New York County Commercial Division issued a decision in Illinois Union Insurance Co. v Grandview Palace Condominiums Association Corp., 2016 NY Slip Op. 32421(U), holding that an insurance policy condition requiring a building to have sprinklers did not violate Insurance Law § 3404. Insurance Law § 3404… Read more »

Posted: November 1, 2016

Additional Insured Endorsement Only Covered Parties That General Contractor Was Required By Written Contract to Name As Additional Insureds

On October 6, 2016, the First Department issued a decision in Three Boroughs, LLC v. Endurance America Specialty Insurance Co., 2016 NY Slip Op. 06554, holding that an additional insured endorsement in a general contractor’s liability policy only covered parties that the general contractor was required by written contract to name as additional insureds. The… Read more »