Since 1948, the expressed public policy of the State of Louisiana, by the Louisiana Legislature, has been that an insurable interest is required of persons seeking protection from property insurance, so as to differentiate an enforceable indemnity agreement from a wagering pact. La. R.S. 22:614 provides that no contract of…
“In the absence of bad faith, a liability insurer generally is free to settle or to litigate at its own discretion, without liability to its insured for a judgment in excess of the policy limits. William Shelby McKenzie & H. Alston Johnson, III, 15 Louisiana Civil Law Treatise-Insurance Law and…
An insurer’s duty to defend its insured is broader than its liability for damage claims. The insurer’s duty to defend suits brought against its insured is determined by the allegations of the injured plaintiff’s petition, with the insurer being obligated to furnish a defense unless the petition unambiguously excludes coverage.…
For insurance policy language which limits coverage to “accidents which occur during the policy period”, the loss occurs at the time the tort is committed, and not when the loss is discovered or becomes manifest. Audubon Coin & Stamp Co. v. Alford Safe & Lock Co., 230 So.2d 278 (La.App.…
For insurance policy language which limits coverage to “damage which occurs during the policy period,” there is no coverage for damages accidentally occurring after the policy expiration, but resulting from a delictual act committed during the policy period. Oceanonics, Inc. v. Petroleum Distributing Company, 292 So.2d 190 (La.1974).
The standard commercial general liability policy contains “work-product” exclusions. “These exclusions reflect the intent of the insurance industry to avoid the possibility that coverage under a CGL policy will be used to repair and replace the insured’s defective products and faulty workmanship.” McKenzie & Johnson, 15 La. Civil Law Treatise,…
“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…
We lawyers are paid to talk, and talk we do. We talk too much. We never learn anything by talking, but we are driven to it. I saw this at a closing I attended with my wife. The closing attorney talked the whole time, interrupted my wife and everyone else…
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…