In the first case, the insurer brought an action alleging legal malpractice against its insured's attorneys. The insurer alleged that the lawyers negligently advised the insured in the negotiation of a high/low agreement, negligently negotiated the form of the agreement, and negligently gave advice regarding settlement. The U.S. District Court in Florida had to decide if the insurer had legal standing to bring such a lawsuit against attorneys hired to defend the insured.

The second case is another U.S. District Court case, this time from Pennsylvania . The court addressed a defense within limits provision in a general liability policy and provided a thorough discussion of that provision, noting that several state legislatures and insurance commissioners have banned or limited the use of the provision.

The final case comes from the Supreme Court of Mississippi. The court was called upon to determine whether the intentional hiring of a subcontractor negates coverage based on whether intentional hiring is or is not an occurrence. The insurer claimed the hiring of the subcontractor was the cause of the property damage and the hiring was intentional and thus, not an occurrence.

The Dec Page also provides information on actions taken by several states over the past year that will affect the insurance industry. Colorado, Connecticut, Iowa, Louisiana, Rhode Island, West Virginia, and North Dakota dealt with laws and regulations pertaining to subjects ranging from how a state court is to interpret a liability insurance policy to cancellation procedures to statutory liens on insurance proceeds.

Questions and Answers

Is the use of a golf cart to pick up mail servicing the residence premises? See Vehicles Used to Service Insured Location. Is removing asbestos floor tiles part of the loss or a separate cause of loss of its own? See Asbestos Floor Tiles Removal. What constitutes the enforcement of ordinances or laws? See Ordinance or Law Enforcement. Inherent defect results in exploding shower glass. See Exploding Glass. What makes a painting a fine art? See Fine Arts and Oil Paintings

Multimedia Liability Policy

AXIS® PRO has developed a multimedia liability policy for any business dealing with cyber exposures. The policy provides coverage for various torts including but not limited to disparagement or harm to the character, reputation or feelings of persons or organizations, interference with rights or privacy, false arrest, and misuse of intellectual property right in content. See AXIS PRO Insurance Policy.