The Eighth Circuit Court of Appeals recently held that, under Iowa law, an insurer is not liable for breach of contract or bad faith if its coverage decision was objectively reasonable at the time it was made. In Hallmark Specialty Ins. Co. v. Phoenix C & D Recycling, Inc., No. 20-1339, 2021 WL 2197068 (8th Cir. June 1, 2021), a fire originated from a pile of biofuel material on an insured’s power plant, causing alleged damage to buildings, wiring, equipment, and other materials. The insurer paid for a portion of the insured’s equipment losses, but not for removal and installation of wiring and equipment because the policy did not require such payment until damaged property had been repaired or replaced.…
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Reasonableness of Insurer’s Coverage Decision Determined by Evidence Available at Time of Decision
Tagged with: Bad Faith, breach of contract, Court of Appeals, Eighth Circuit, evidence, Iowa, reasonableness
Posted in Coverage
Posted in Coverage
Appraisal Process Tolls Contractual Suit Limitation Period Even For Non-Covered Claims
The Eleventh Circuit Court of Appeals recently held that, under Georgia law, an appraisal process tolled a commercial property policy’s two-year contractual suit limitation period even for non-covered claims. In Omni Health Solutions, LLC v. Zurich Am. Ins. Co., No. 19-12406, 2021 WL 2025146 (11th Cir. May 21, 2021) (unpublished), the insured filed a property insurance claim with its insurer, reporting hail damage to the roof of its medical facility in Macon, Georgia, and water intrusion. The policy required the insurer to give notice of its intentions with respect to a claim within 30 days of receiving a sworn proof of loss. Following a protracted appraisal process, the insured sued the insurer in Georgia superior court for breach of contract…
Tagged with: amount of loss, appraisal, appraisal process, Bad Faith, breach of contract, commercial property policy, contractual suit limitation, contractual suit limitation period, delay, Eleventh Circuit, extra-contractual damages, Georgia, insured event, notice, omni health solutions, policy limits, Proof of Loss, property insurance, zurich
Posted in Bad Faith, Proof of Loss
Posted in Bad Faith, Proof of Loss
