MOLD EXCLUSION
New Jersey appeals court concludes that claims by a condominium resident alleging injury from indoor exposure to mold did not fall within a “consumption” exception to mold exclusions* in CGL policies where the resident demonstrated only that mold was present on his food and not that he was injured by eating mold on the food. It reasoned that, if the resident needed to prove only that there was mold on his food, and not that he ... Continue Reading
DUTY TO DEFEND – EXTRINSIC EVIDENCE
Third Circuit questions, but declines to decide, whether Pennsylvania’s “four corners” rule permits an insurer under a claims-made professional liability insurance policy to terminate its defense of the insured based on extrinsic evidence unrelated to the merits of the underlying liability case. Quoting Erie Ins. Exch. v. Moore, 228 A.3d 258 (Pa. 2020), the court explained that, although Pennsylvania law provides that an ... Continue Reading
ANTI-ASSIGNMENT CLAUSE
Wisconsin Court of Appeals (in a divided decision) holds that a “post-loss” assignment of rights under a liability insurance policy is valid despite lack of insurer consent. The majority believed an insurer’s consent to an assignment after “loss” occurs is not required on the basis that the assignment does not increase the insurer’s risk. It referred to Wisconsin’s “longstanding rule” that an anti-assignment clause in an ... Continue Reading
To Our Readers:
In just a matter of days, we have seen the coronavirus (COVID-19) take off and dominate nearly every aspect of our lives. Reports of serious personal, economic and other impacts that have now become commonplace were unimaginable to most just a few weeks ago. Please know that our thoughts are with you all in this challenging and uncertain time. A time when business is anything but “as usual.”Continue Reading
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