Tag Archives: New York

Governor Cuomo Signed Bill Into Law On November 21st Allowing Appraisals In New York To Determine “Scope Of Loss”

Appraisal in first-party property insurance claims is meant to resolve disagreements over the amount of loss. Appraisal is a contractual alternative dispute resolution process. But often the parties dispute involves some disagreement over the scope of the covered damages resulting from the loss. Insurance carriers often argue that disputes involving the scope of damages caused … Continue Reading

Should Flood Aggregate Limit Apply To “Downstream” Financial Losses Like Delay In Completion?

It is official—in a case of first impression in New York,1 the appellate court will decide if a policy flood aggregate limit will apply to “downstream” financial losses such as delay in completion. The policyholder has filed the appellate brief on December 3rd requesting the appellate court to review the trial court’s ruling of first … Continue Reading

Hurricane Sandy Update – Case Management Order No. 12

If you have been following Hurricane Sandy news, you may already be aware of Judge Brown’s recent November 7th order in Raimey v. Wright National Flood Insurance Company,1 in the Eastern District of New York (EDNY) which requires defendants in all Hurricane Sandy cases to provide plaintiffs by December 12th:2 [C]opies of all reports described in … Continue Reading

Partial Payments of Insurance Claims and Claims Delay – A Need for Higher Interest Rate Penalties and Claims Practice Regulations

Should any debtor hold on to money that is agreed owed? It seems like an absurd question, but in the insurance claims world, many insurance companies know that it is very profitable to "play the float." Even the most famous insurer admits that "playing the float" is very profitable, as I noted in Playing the … Continue Reading

Insurance Company Denials Based on Water Backup and Overflow Are Not Always Enforceable

Many policyholder disputes involve an insurance contract that includes a provision dealing with water damage. While there are various constructions of the water damage provision, the issue of water that backs up or overflows from a sewer or drain arises frequently. Insurance companies will often deny claims based on a policy provision excluding any loss … Continue Reading

Late Notice in New York – Part II Recent Court of Appeals Ruling Rejects Expansion of Current Law

In a recent blog I discussed how a Second Circuit Court of Appeals case, Fabrozzi v. Lexington Insurance Company,1 interpreted the law regarding “Late Notice” expansively in favor of policyholders. A recent New York State Court of Appeals ruling has failed to continue this expansion and has left the law as it was regarding a … Continue Reading

Insurer to Pay $327,400 in Fines for Late Investigations of Super Storm Sandy Claims

On May 22, 2014 Naragansett Bay Insurance Company (“Naragansett”) signed a Consent Order with the New York State Department of Financial Services (DFS) agreeing to pay a civil penalty of $327,400 and to enact substantial capacity upgrades for its failure to timely perform adjuster inspections on numerous properties damaged by Super Storm Sandy.1… Continue Reading

New York Court Holds Policy Ambiguous as to Loss From Overflow of Water From Plumbing System — Policyholder Entitled To Coverage

A New York appellate court recently found a property insurance policy to be ambiguous on losses from overflow of water from a plumbing system, entitling the policyholder to coverage. It was the first of such a holding for a New York court, and its ruling of coverage for such loss is consistent with other jurisdictions … Continue Reading

Second Circuit Court of Appeals Decision Clarifies Time to File Suit Requirement in New York

Guess where you need to look? You got it: The policy. In Fabozzi v. Lexington Insurance Company,1 plaintiffs Paul and Annette Fabozzi’s beach-front home in Staten Island, New York, began to exhibit structural problems in 2001 and nearly collapsed in 2002. The Fabozzi’s reported the claim to their insurance carrier Lexington Insurance Company (“Lexington”) about … Continue Reading

New York Expands Broker Negligence in Favor of Policyholders

In a recent decision, the New York Court of Appeals expanded a Policyholder’s ability to hold a broker liable for negligence. The court confirmed its recognition that under certain circumstances a duty exists whereby an insurance broker is liable for its failure to advise clients of the need to procure additional or sufficient coverage. The … Continue Reading

New York Policyholder Appeals Court Order Dismissing Bad Faith Allegations Against Insurer

A topic of interest in New York, where courts are currently hearing Superstorm Sandy cases, is whether policyholder allegations of bad faith claims handling against insurers state a cause of action under state law. Needless to say, policyholder and carrier advocates do not agree on this issue. It is a hot topic too, with thousands … Continue Reading

Court Orders Primary Insurer to Pay Excess Insurer Substantial Damages Due to Bad Faith Negotiations

It’s not everyday that you read about one insurance carrier suing another insurance carrier for bad faith damages in how it handled an insurance claim. When it happens, it usually has to do with different levels of insurance; like between primary and excess insurers. The excess insurer’s responsibility does not kick in until the primary … Continue Reading