Dec Page

The question of the month deals with the Americans with Disabilities Act (ADA). The law is in force for most businesses in the United States and questions concerning its relationship with the workers compensation system have arisen. For example, does the ADA affect the provisions or the coverage found in the workers compensation and employers liability insurance policy? Does the ADA affect the workers comp system, and if so, in what way? And, since the ADA and the workers comp system are now part of the work place of America , are there differences between the two that insureds and insurers need to know?

For answers to these questions and for current information on the ADA (which has been amended since its inception), see the designated article in the Bulletins.

Some of the court cases in the Dec Page pertain to familiar issues of dispute in the insurance world. The business risk exclusions and the meaning of “that particular part” are items discussed by the Nebraska Supreme Court. A Michigan court of appeals dealt with the question of what constitutes an occurrence in relation to the supplying of defective steel by the insured to the claimant. The insured and the insurer sparred over the meaning of pollutant in another case from Michigan . Here, the insured used an ingredient in its duct cleaning operations that the insurer said qualified as a pollutant and so, the pollution exclusion applied to the damage claims; the insured argued that the ingredient was a commonly used one that is not generally expected to cause injury or harm.

Other cases in the Dec Page concern workers compensation and recovery after flood damage. The workers comp case is from New York and the court there had to decide which insurer was responsible for workers compensation payments to an injured worker. Was the previous carrier responsible since the worker was exposed to asbestos during that carrier's policy period, or was the current insurer responsible since the worker actually became disabled during that carrier's policy period? The flood case involves a claim against State Farm for additional insurance benefits and statutory damages resulting from alleged underpayment of proceeds to the insured. The insured collected partial payment from his policy limits from both the homeowners and flood insurance policies. When the insured sought more, the homeowners insurer balked and said the insured had to show the damage was caused by wind (a covered peril) as opposed to flood (not covered). The United States District Court in Louisiana handled this dispute.

Questions and Answers

Does the BAP afford coverage for a rented auto if the insured has chosen symbol 7, specifically described autos, as the covered auto symbol? See BAP Symbol 7, Specifically Described Autos, and Coverage for Rented Auto. Is med pay coverage applicable when claimant falls on adjacent property? See Med Pay Coverage and a Fall on Adjacent Property. Are multiple claims for damage by gravel and tar one occurrence or multiple occurrences? See One Occurrence or Multiple Occurrences in Question.

What is the coverage territory when a product is made in China, brought into the United States, and sold in Mexico ? See Coverage Territory and Coverage for Product Liability. Does the expected or intended injury exclusion in the CGL form exclude coverage for assault and battery? See Expected or Intended Injury Exclusion.