Eleventh Circuit Refuses to Infer “Follow the Fortunes” Clause in Reinsurance Contract

Reinsurance

A “follow the fortunes” clause is an agreement within a reinsurance contract that imposes a duty on the reinsurer to honor and reimburse good-faith payouts by the insurer to the underlying claimant. In Public Risk Mgmt, of Fla. v. Munich Reinsurance Am., Inc., Munich refused reinsurance coverage on the grounds that the loss occurred before …

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Can cryptocurrency suffer direct physical loss?

Cryptocurrency, Emerging Issues

Cryptocurrency, such as Bitcoin, Ethereum and Litecoin, is a digital or virtual currency.  Unlike traditional currency, cryptocurrency does not have any tangible existence, but rather exists purely as digital entries in an online database.  Given the relatively recent development of cryptocurrency, few courts have had occasion to address application of property insurance coverage principles to …

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PRESS RELEASE: Horst Krekstein & Runyon Announces New Partner

Press Release

July 29, 2022 — Horst Krekstein & Runyon LLC (HKR), a nationally recognized law firm, announced today that Dan Grossman has been named a Partner. Mr. Grossman works in the firm’s Plymouth Meeting, Pennsylvania office. “Dan is a strong trial lawyer.  He’s also deeply committed to serving HKR’s insurance company clients.  It’s a pleasure to …

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Rob Runyon and Dan Grossman published in SIU Today

Fraud

HKR’s Rob Runyon and Dan Grossman’s article, “Immunity Statutes: Protecting Open Communication Between Insurers and Law Enforcement“, was recently published in the Summer 2022 edition of SIU Today, an official publication of the International Association of Special Investigation Units. Fraud reporting remains an important issue in the insurance industry. At HKR, we are committed to …

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Improper Policy Cancellation Does not Support A Statutory Bad Faith Claim

Bad Faith

The U.S. District Court for the Western District of Pennsylvania in Devein Dalessio Trucking, LLC v. Progressive Corp. recently held that Plaintiff’s statutory bad faith claim cannot be exclusively based on an allegedly improper cancellation of a policy and granted the carrier’s motion to dismiss. Pennsylvania’s bad faith statute is limited to causes of action …

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Matt Malamud and Lexie Doran published in PDI’s Counterpoint

COVID-19

HKR’s Matt Malamud and Lexie Doran’s article, “COVID-19 Business Interruption Coverage Litigation Update,” was recently published in the May 2022 edition of Counterpoint, an official publication of The Pennsylvania Defense Institute. Business interruption coverage for losses caused by the COVID-19 pandemic remains an important and rapidly developing issue. At HKR, we are committed to staying …

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The Importance of Specificity in Reservation of Rights Letters

Reservation of Rights

Reservation of rights letters notify policyholders that all or some of their claims may not be covered under their insurance policies. Insurance companies may deny coverage for a variety of reasons including: (1) the provisions of the policy, (2) legal principles, and (3) actions of the policyholder.  To avoid waiving any of their available defenses, …

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PROPERTY IN 60 SECONDS: Bob Horst Quoted in Claims Journal

Appraisal, Property in 60 Seconds

HKR’s Bob Horst has recently been quoted in two articles published in Claims Journal dealing with appraisal: Appraisals, Water Damage Fraud Among ‘New Normals’ Discussed at PLRB (April 5, 2022) Insurers Challenging Awards When Appraisers’ ‘Disinterest’ in Question (April 19, 2022) The law surrounding the appraisal process has been developing rapidly throughout the country in recent months.  …

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