“Claims Made” policy: coverage is effective only if the negligent harm is discovered and reported within the policy term. “Occurrence” policy: coverage is effective if the negligent harm occurs within the policy period, regardless of the date of discovery. Livingston Parish School Board v. Fireman’s Fund American Insurance Co., 282…
Because of a liability insurer’s obligation to its insured not to arbitrarily refuse reasonable offers of settlement within policy limits when faced with liability in excess of the policy limits, a liability insurer faced with multiple claims to inadequate insurance proceeds is generally not required to prorate the proceeds, but…
For UM policies that require the uninsured or underinsured owners’ or operators’ liability for damages caused by an accident to “arise out of the ownership, maintenance, or use of the uninsured motor vehicle,” the Courts are required to answer two separate questions: 1. Was the conduct of the uninsured of…
Legal interest on a UM claim begins to run from the date of the original judicial demand against any solidary obligor, regardless of the language in the insurance policy. Ainsworth v. Government Employees Ins. Co., 433 So.2d 709 (La.1983); and Burton v. Foret, 498 So.2d 706, 712 (La.1986).
Prescription on actions for the recovery of damages sustained in automobile accidents brought pursuant to UM (uninsured/underinsured) provisions in automobile liability insurance policies is 2 years from the date of the accident in which the damages were sustained. La.R.S. 9:5639. Timely suit against the tortfeasor interrupts prescription as to the…
The Louisiana Supreme Court in Valentine v. Bonneville Ins. Co., 691 So.2d 665 (La.1997), held that the automobile liability insurance policy definition of “occupying” as “in, upon, getting in, on, out, or off” was clear and unambiguous, and therefore did not extend coverage to a deputy sheriff who was directing…
A guest passenger cannot recover under both the liability and UM coverages of the host driver’s insurance policy when the negligence of the host driver is the sole cause of the accident. Nall v. State Farm Mut. Auto. Ins. Co., 406 So.2d 216 (La. 1981). However, if the guest passenger…
Rejection of UM coverage or selection of lower limits of UM coverage in Louisiana shall be on a form prescribed by the Louisiana Commissioner of Insurance and shall be provided by the insurer and signed by the insured or his legal representative. A UM rejection or selection of lower limits…
La.R.S. 22:1295 (formerly 22:1406(D) and 22:680) generally provides that all automobile liability insurance, including excess or umbrella policies, delivered or issued for delivery in Louisiana, and covering liability arising out of the ownership maintenance or use of a motor vehicle required to be registered in Louisiana, provides UM coverage in…
In Marcus v. Hanover Ins. Co., Inc., 740 So.2d 603 (La.1999), the Louisiana Supreme Court held that a “business use exclusion” in a personal automobile liability policy which excludes coverage for damages resulting from the operation of “your insured car, in any business other than an auto business,” is against…