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Pennsylvania Superior Court Issues Warning to Insurers Regarding Reservation of Rights Letters
In a case involving facts that it described as “a veritable ‘comedy of errors,’” a divided Pennsylvania Superior Court issued a warning to insurers handling Pennsylvania insurance claims: if the reservation of rights letter issued to your insured does not use at least some specificity when identifying the bases upon which indemnity coverage may be denied, you will be deemed to have waived the ability to disclaim indemnity coverage at a later date.
Reminder for Claims Handlers During COVID-19 Pandemic: Compliance with PA Regulations to Timely Respond to Insureds is Critical
While many claims adjusters are accustomed to working from home, in light of the COVID-19 pandemic, they are likely facing an increased volume of claims while simultaneously having to deal with less physical assistance from the home office. The following primer on the timeliness requirements of the Pennsylvania Unfair Insurance Practices Act (UIPA) and its related regulations - the Unfair Claim Settlement Practices Regulations (UCSPR) - is offered as helpful guidance during this difficult time.
Pennsylvania's Highest Court Stacks the Odds Against Insurance Companies, Invalidating Household Exclusion in UM/UIM Policies
In its most recent pronouncement regarding the UM/UIM stacking provisions of the Pennsylvania Motor Vehicle Financial Responsibility Law, the Supreme Court of Pennsylvania overturned decades of precedent by declaring the "household vehicle exclusion" found in most personal automobile policies to be void and unenforceable as a matter of law.
Rancosky v. Washington National Insurance Co.: Pennsylvania Supreme Court Finally Rules on Test for Insurance Bad Faith; Holds That Proof of an Insurer's Motive of Self-Interest or Ill Will Is Not Required
In Rancosky v. Washington Nat'l Ins. Co. the Pennsylvania Supreme Court at long last ruled squarely on what must be proven to establish bad faith under 42 Pa. C.S.A. §8371, Pennsylvania's "bad faith statute," and, in doing so, held that proof of a motive of self-interest or ill will on the part of the insurer is not required.
Westport Ins. Co. v. Mylonas: Pennsylvania Court Fashions New Test for Legal Malpractice Claims Under E&O Policies
In Westport Insurance Company v. Mylonas, Judge Slomsky of the United States District Court for the Eastern District of Pennsylvania granted summary judgment in favor of Westport in a declaratory judgment action, declaring that under an errors and omissions (E&O) policy, multiple related acts of negligence amount to a single claim under a legal malpractice policy.
In the Wake of Superstorm Sandy, Insurance Carriers are Well-Advised to Review New Jersey Insurance Bad Faith Law
Superstorm Sandy's devastating landfall in October 2012 caused property damage and income loss in New Jersey that early estimates suggest will exceed $50 billion. Commercial and personal lines property insurers have been inundated with claims. As some of these claims progress, the term "bad faith" may be hurled by policyholder representatives - public adjusters and attorneys - who may have little familiarity with New Jersey law governing such assertions.