The question of the month in the Dec Page deals with one of the ways to manage risk exposures. An entity can purchase insurance to protect against the risks of a property loss or a casualty claim, or the entity can choose an alternative method: self-insurance.

There are many questions pertaining to self-insurance. What is it? Is self-insurance considered to be insurance or not? Are self-insureds subject to state insurance regulations? What areas should be reviewed in designing programs that use self-insurance? What are the advantages and disadvantages that come with the use of self-insurance?

For the answers to these questions and for some court cases that shed more information on the subject of self-insurance, see the designated article in the Bulletins.

The court cases in this month's Dec Page deal with the interpretation of insurance policy language, the meaning of occurrence, and insurance coverage for computer damage.

In a case from Connecticut , a claimant was stabbed twenty-four times and sought payment under the attacker's homeowner insurance policy. The policy excluded coverage for physical abuse but the claimant said the exclusion did not apply because the insured did not intend to physically abuse her.

The South Carolina Supreme Court, the Colorado Court of Appeals, and the U.S. Fifth Circuit all decided cases centered around the meaning of occurrence. The South Carolina court and the Colorado court had to decide whether defective construction was an occurrence; both cases show the extent to which this issue is still in flux around the country. The Fifth Circuit was faced with an embezzlement that took place over several policy periods and the question as to whether this was one occurrence or more than one occurrence.

The last case involves an attempt by the insured to force the insurer to defend the insured against a complaint alleging computer damage due to the actions of the insured. The insurer denied coverage under both a CGL form and an E&O policy and the denials were based on the policies' definitions.

Questions and Answers

The insured was in the final stages of completing construction on a new home when it was destroyed by fire. Should the insured receive ALE for the time during the restoration period when the insured would have been in the house had there been no fire? See ALE and Residence under Construction.

If condensation causes basement mold, is the cause of damage to the property still deemed mold and thus excluded under the homeowners policy? See Mold Damage and Condensation under Homeowners Policy.

How should one insure a vehicle jointly owned by two non-married, non-related individuals who do not live in the same household? See Non-resident Non-related Named Insureds. Is there coverage under the BAP or PAP for theft of the proceeds from autos parted from voluntarily by the insureds? See Theft of Proceeds from Auctioned Vehicle. Auto engine seizes after plug falls out, oil empties, and insured continues to drive the car. Is this excluded as wear and tear? See Wear and Tear Exclusion and Oil Discharge.

Homeowners Coverage Comparison Chart

This comparison chart has been updated and compares the forms for the following companies: Amica Mutual, Fireman's Fund, Montgomery Mutual, Erie Insurance, Central Mutual, and Travelers Property Casualty. See Homeowners Coverage Comparison Chart.

Personal Umbrella Liability Comparison Chart

This comparison chart has been updated and compares the forms for the following companies: Westfield , State Auto, Grange, and Cincinnati Insurance. See Personal Umbrella Liability Comparison Chart.