Dec Page:

The question of the month deals with the absolute pollution exclusion as it exists in liability policies. There is a glaring lack of unanimity as to how the exclusion should be interpreted, with some courts arguing that the exclusion should apply only to environmental pollution, and other maintaining that the exclusion applies to all types of pollution claims.

Insureds who are subject to pollution liability claims have to wonder what the exclusion means and how courts are interpreting it for insurance coverage purposes. For an analysis of the absolute pollution exclusion and a review of judicial findings on the subject, link onto the designated article in the FC&S Bulletins.

The court cases in the Dec Page deal with the issue of intentional acts and insurance coverage, the issue of choice of law, whether emotional distress is equivalent to bodily injury, and whether the business risk exclusions apply to additional insureds. The intentional acts case is one where an insured contractor mistakenly demolished the wrong structure; the act was intentional but was the resulting damage intentional? The choice of law issue concerns an auto accident involving a Colorado resident who was in New Orleans at the behest of his employer, a Delaware corporation with its principal place of business in Maryland, and who was injured in the car accident by an Illinois resident. Which state's law governed the interpretation of the auto policy language so as to determine if the injured party could receive compensation for his injuries? Whether emotional distress is included in the definition of bodily injury under the terms of an insurance policy is a question that many courts have addressed. The Supreme Judicial Court of Maine offers that state's view in a case of first impression for that state. And finally, The Supreme Court of Montana answers a question on the status of additional insureds: when an exclusion applies to the named insured, does it also apply to the additional insured?

Questions and Answers:

Is rain damage to a vehicle's protective coating direct and accidental damage? See Direct and Accidental Damage. When the date of loss and date of assessment are in different years and policy terms, which date is correct to determine coverage? See Date of Loss, Date of Assessment, and Policy Effective Date. Does a road have to be paved to be considered a driveway under the homeowners policy? See Paved or Non-paved Driveway.

When a vehicle sustains water damage or drives into water, is this covered under collision or other than collision coverage? See Comprehensive or Collision Coverage. What are the major differences between the HO 3 and the DP 3 policies? See HO 3 and DP 3 Differences.

When is a pet kept by the insured versus just visiting the insured? See Visiting Pets and Kept Pets.

Are bodily remains considered to be pollutants? See Clean-up Coverage. When is property for an insured's defunct business personal property or business property? See Business Property or Insured's Property.

When a loss involves mold or other things that occur over time, when is the date of discovery used instead of a date of loss? See Date of Loss, Date of Discovery, and Which Carrier Pays.

Mobile Agricultural Machinery and Equipment:

This article updates the ISO Mobile Agricultural Machinery and Equipment coverage form to include the 2003 program changes. This form provides open perils coverage for mobile agricultural machinery and equipment as defined in the form. The article is in the Farms C.1 pages. See Mobile Agricultural Machinery and Equipment.

Index Updates:

The Casualty & Surety Index and the Companies & Coverages Index are updated this month. These updates reflect the changes and additions that have been made in the FC&S volumes over the past year. This will allow subscribers to more easily find the location of the various subject matters that are discussed and analyzed in the FC&S volumes.