Ex-Chubb Vice President of Claims Says Company Destroyed Pertinent Litigation Documents

Anthony Guerriero, a former vice president in charge of claims, filed a lawsuit in Union County Superior Court, New Jersey, claiming he was fired after raising concerns that Chubb destroyed documents related to insurance claims litigation and asked him to keep quiet about it. He alleges that company officials disregarded legal department notices about preserving documentation and tapes, knowing the materials might contain relevant evidence. Continue Reading

Is an Email Scam Causing a Business to Lose Clients’ Money Covered Under a First-Party Commercial Policy?

In unpublished decision, the Ninth Circuit Court of Appeals recently denied an accounting firm’s appeal relating to a claim for coverage triggered by an email scam that caused the firm to mistakenly send wire transfers of client funds to fraudsters. Continue Reading

“Measurable Increase in Risk” Is Not Specific Enough Reason for Policy Cancellation

In August, I wrote a blog post about an insurer who had violated section 143.17a(a) of the Illinois Insurance Code by failing to provide adequate notice of their intention to non-renew a policy. As a result of its failure to timely provide notice of the intent to non-renew, the insurer was required to renew the expiring policy under the same terms and conditions for an additional year. Two days after issuing the renewal policy, the insurer issued a Notice of Cancellation citing the reason for the cancellation as “Underwriting Reasons: Measurable increase in risk.” This notice provided more than 60 days’ notice. Continue Reading

New Report from Rutgers Calls Out Insurance Companies and Asks States to Help Policyholders

When you have a claim for property damage under your homeowners insurance, you should not be penalized by your carrier. You should not be slapped with an increase in premium or slammed with a non-renewal notice because you had a claim and had to actually use your insurance. Professor Jay Feinman, the author of Delay, Deny, Defend, has prepared a new report to help state lawmakers ban the practice known as “Use It and Lose It” and calls-out this harmful practice. This report is part of a series that my colleague Rob Trautman discussed in, Rutgers Law School and United Policyholders Launch Essential Protections for Policyholders Project. Continue Reading

Is a “Matching” Dispute Appropriate for Appraisal?

In my last blog post, I discussed Windridge of Naperville Condominium Association v. Philadelphia Indemnity Insurance Company,1 and the issue whether appraisal is appropriate to resolve a dispute over the need for a general contractor to perform repairs following a covered loss. Windridge of Naperville also involved whether appraisal is appropriate to resolve a dispute over the cost of repairing physically undamaged sides of townhome buildings to remedy a mismatch with repaired damaged sides. Continue Reading

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