Property in 60 seconds: Insurers Prevail in PA Supreme Court COVID Litigation
On September 26, 2024, via two decisions, Ungarean v. CNA and MacMiles v. Erie Insurance Company, the Pennsylvania Supreme Court confirmed what we, as an industry, have known since March of 2020 – economic loss alone, with an absence of direct physical loss or damage, does not constitute a covered first party property claim. The …
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Property in 60 Seconds: Massachusetts Supreme Court Addresses Surface Water
On July 23, 2024, the Massachusetts Supreme Judicial Court held that an accumulation of rainwater on a roof is not considered “surface water.” Regarding a flood sublimit in a commercial policy, the policyholder argued that surface water only included water that reaches the surface of the earth. In contrast, the insurer argued that the term …
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Property in 60 Seconds: Michigan Department of Insurance and Financial Services Addresses Depreciation of Labor
On July 3, 2024, the Michigan Department of Insurance and Financial Services (DIFS) issued a bulletin, which expressly prohibits insurance companies from depreciating labor when calculating actual cash value (ACV), unless the insured as agreed to the depreciation of labor in exchange for a lower premium. According to DIFS: ACV is ordinarily understood to mean …
Property in 60 Seconds: Texas Supreme Court Rebukes Contractor Endorsing Public Adjuster Licensing Statute
On June 7, 2024, the Texas Supreme Court issued an opinion upholding the State’s Public Adjuster Licensing Statute against a constitutional challenge by a roofing contractor. The Court held that the statute’s licensing requirement, as well as the dual capacity prohibition, preventing a company from serving as both a contractor and a public adjuster in …
Looking Toward The 2024 Hurricane Season
The 2024 Atlantic hurricane season started June 1 and runs through November 30. The National Oceanic and Atmospheric Administration (NOAA) is predicting a “well-above-average” season. An “average” hurricane season consists of 14 named storms, 7 hurricanes, and 3 major hurricanes. For 2024, NOAA is expecting 17 to 25 named storms, 8 to 13 of which …
Property in 60 Seconds: Clear Vacancy Language Earns Insurer Summary Judgment
On May 14, 2024, the Eastern District of Pennsylvania held that the Vacancy provision in a commercial property policy applied, barring coverage for a policyholder’s claim of over $13 million in theft/vandalism damages, while simultaneously denying allegations of bad faith. In 4301 N Delaware QOB LLC v. Selective Insurance Company of South Carolina, the plaintiff policyholder sued Selective for breach of contract and …
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CONGRATULATIONS!!
HKR associate, Patrick Clawson has been admitted to practice law in the State of Ohio. Way to go, Patrick! We look forward to great things!
New Jersey Enacts Property Flood Risk Disclosure Law
A recently enacted New Jersey law may impact New Jersey property insurers. The new law went into effect on March 20, 2024, requiring landlords and sellers of real estate to disclose flood risk information to prospective buyers and tenants. Under the law, both sellers of real property and landlords must disclose whether the property is …
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Connecticut Insurance Department Addresses AI
The integration of Artificial Intelligence (“AI”) systems has become a forefront of potential innovation and efficiency, for insurers and insureds alike. Recognizing that AI systems may permeate all stages of the insurance life cycle, the Connecticut Insurance Department has issued a detailed Bulletin providing a comprehensive overview of the regulatory framework and expectations for insurers’ …