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Failure to issue reservation of rights letter does not waive per claim/per claimant deductible

We previously noted the decision in Cincinnati Insurance Co. v. All Plumbing, Inc., Civil Action No. 12-851 (D.D.C. Oct. 18, 2013)(Kollar-Kotelly, J.), where the Court held that Cincinnati Insurance's failure to properly reserve its rights and five-month delay in disclaiming coverage while controlling important acti…

Subrogation: Maryland Workers' Compensation Lien

In Maryland, an employer/insurer may recover reimbursement of workers’ compensation benefits paid in cases where a third party is liable for the employee’s injury. This is an overview of certain statutory provisions and legal doctrines that may have a bearing on such claims. We hope you find it useful. More
Categories: Insurance, Maryland

Failure to issue reservation of rights letter results in waiver of all coverage defenses

In Cincinnati Insurance Co. v. All Plumbing, Inc., Civil Action No. 12-851 (D.D.C. Oct. 18, 2013)(Kollar-Kotelly, J.), the Court held that Cincinnati Insurance's failure to properly reserve its rights and five-month delay in disclaiming coverage while controlling important actions in the insureds' defense precl…

Maryland: The Interplay Between Workers' Compensation and Uninsured Motorists Insurance

Interesting outcomes can result at the intersection of two insurance schemes under Maryland law: uninsured/underinsured motorists (UIM) and workers’ compensation.  In Brethren Mut. Ins. Co. v. Suchoza, 212 Md. App. 43 (May 29, 2013), cert. denied, 2013 Md. LEXIS 631 (September 23, 2013), the Court held that the UIM carri…
Categories: Insurance, Maryland

Maryland bad faith/legal malpractice action against individual defense attorneys dismissed

In Cook v. Nationwide Insurance Company, Case No. PWG-13-882 (D. Md. Aug. 23, 2013), the Court considered a “dizzying array” of motions in an insurance bad faith case arising out of an excess judgment in a motor vehicle accident case tried in Maryland state court.  The federal district court denied the p…

Maryland Court upholds waiver of UM coverage

In Swartzbaugh v. Encompass Insurance Company of America, No. 100, September Term 2011 (Md. April 25, 2012), the Court held that in the context of a waiver of UM benefits under a Maryland motor vehicle insurance policy, the phrase “first named insured” refers to a person insured under the policy and specifica…

Insurance coverage action in Maryland dismissed based on abstention

In Evanston Insurance Company v. Dan Ryan Builders, Inc., No. 11-02366 (D. Md. Feb. 13, 2012), the Court granted the insureds' motion to dismiss an insurer's declaratory judgment action, finding in favor of abstention based on parallel litigation pending in state court. The defendants were Maryland contracto…
Categories: Insurance, Maryland

Virginia rejects attempt to limit pollution exclusions to “traditional” environmental pollution

In PBM Nutritionals, LLC v. Lexington Ins. Co., No. 110669 (Va. Apr. 20, 2012), the Virginia Supreme Court affirmed the Circuit Court's judgment that pollution exclusions barred coverage for a multi-million dollar loss resulting from a manufacturing incident that contaminated a number of lots of infant formula, whic…
Categories: Insurance, Virginia

Pollution exclusion bars coverage for claims of injury from noxious odors from pig-raising facility

In Travelers Property Casualty Co. v. Chubb Custom Ins. Co., No. 11-565 (E.D. Pa. March 30, 2012), the Court awarded summary judgment to two insurers on the grounds that coverage for the underlying lawsuit concerning odors from a “pig-raising operation” were barred by the pollution exclusions in the policies.…
Categories: Insurance

Lawyers Professional Liability - Unreported administrative error results in disclaimer of coverage

In Minnesota Lawyers Mut. Ins. Co. v. Baylor & Jackson, PLLC, No. 10-2701 (D. Md. Apr. 3, 2012), the District Court granted summary judgment to the insurer, holding that the insurer is not liable to defend or indemnify the defendant law firm under an LPL policy.  The Court awarded summary judgment based on the f…