The question of the month in the Dec Page deals with loss resulting from mine subsidence and sinkhole collapse. This is an excluded cause of loss in most homeowners policies. However, coverage can be purchased for this exposure where allowed or mandated by law, and where an insurer elects to include such coverage. A purchase for this type of coverage raises questions for homeowners pertaining to such topics as the extent of the coverage, and how courts interpret policy language offering the mine subsidence and sinkhole collapse coverages, and what the difference is between sinkhole collapse and mine subsidence.

For answers to questions about mine subsidence and sinkhole collapse coverages and for a discussion of court cases on the matter, link onto the designated article in the FC&S Bulletins.

The Dec Page also discusses several court cases. A long awaited opinion from the Texas Supreme Court on construction defects and possible liability coverage is analyzed. A faulty product claim and whether such a claim is an occurrence in accordance with the terms of the general liability policy is the subject of a decision based on Maryland law. A Kentucky appeals court ruling pertaining to exclusions on a homeowners policy is reviewed; the exclusions were used by the insurer to deny coverage for property damage claims made by the insured. The owned vehicle exclusion for uninsured motorists coverage was examined by the Supreme Court of New Hampshire and the decision on the applicability of that exclusion by the court is noted in the Dec Page. Finally, the additional insured issue is again addressed, this time by a Colorado appeals court. The question for the court was whether an additional insured endorsement limiting the additional insured's coverage to ongoing operations includes completed operations as well.

Questions and Answers

When is a vehicle considered available for regular use? See Vehicle Available for Regular Use. Who has the ability to grant permission to drive a vehicle? See Permissive Driver Issue. When does business property become personal property? See Business Personal Property and Theft Coverage under HO Policy. Is a carport a canopy? See Carport a Canopy.

What is considered dampness of atmosphere? See Dampness of Atmosphere or Frost Melt. Who should pay for debris removal up front? See Debris Removal Part of ACV Loss. When debris removal creates a hole, is the filling of the hole covered? See Debris Removal Demolition and Resulting Hole. What's the difference between farm personal property and personal property? See Farm Personal Property versus Personal Property.

The Sistership Exclusion in the CGL Form

This article explains the sistership exclusion (exclusion n.) found in the commercial general liability coverage form. Court cases in which the exclusion was found either to apply or not apply are also discussed. In addition, the article includes a brief discussion of product recall insurance and how these types of endorsements and/or policies may or may not give back to the insured the coverage the sistership exclusion takes away. See The “Sistership” Exclusion in the CGL Form.

ISO Market Segments Program: Supermarkets

This article discusses the newly updated ISO market segments supermarkets coverage form, MS SM 01 05 07, which modifies the CGL forms, the commercial property coverage form, and the causes of loss—special form. Also discussed are applicable endorsements and their updates. See Supermarkets.