The article of the month deals with loss arising from credit card misuse and forgery. Most homeowners forms in use today provide coverage for loss arising from credit card misuse and forgery and this article discusses the need for credit card and forgery coverage, some coverage comparisons, exclusions that will prevent coverage, and certain other provisions that can be included in insurance forms. See the designated article in the FC&S Bulletins.

The court cases this month come from the U.S. District Courts, the Supreme Court of Indiana, and the U.S. Third Circuit Court of Appeals.

The District Court for Massachusetts dealt with an action in diversity wherein the insurer sought a declaratory judgment that it had no duty to defend its insured. The dispute centered mainly on the meaning of the word “contractor”. Should the word be interpreted broadly as a person who contracts or should it mean only those in contractual privity with the insured? The Supreme Court of Indiana discussed the meaning of value. The case involved a workers compensation dispute over whether value is limited to direct monetary payment or whether value can include any ancillary consideration in goods and services received by the employer for work. The U.S. District Court for the Northern District Court of Illinois handled a dispute over what caused damage at the insured's property. The damage was water damage, but the court had to decide if that damage was excluded by the surface water exclusion or covered due to the exception for loss caused by water that backs up from a sewer or drain. The final case involves a putative class action alleging illusory coverage. The U.S. Third Circuit Court of Appeals discussed such coverage in connection with the stacking of uninsured and underinsured motorists coverage.

Questions and Answers

Are snowplows considered auto equipment even if not attached to the vehicle at the time of loss? See Auto Equipment Loss. Are the costs and fees associated with fire fighting considered to be damages? See Costs and Fees as Property Damage. How many deductibles apply when a car suffers multiple damage occurrences? See Deductibles under the PAP. Does non-owned auto coverage apply to accidents while delivering items? See Delivery Coverage under the BAP.

Is a handyman considered an employee or an independent contractor in relation to WC coverage? See Handyman as an Employee or Independent Contractor. What is the status of a daughter if she is driving a car rented by her mother? See Permissive User as Insured under the PAP.

Jewelry and Furs Form

A new article discussing the ISO Jewelry and Furs form has been published. This article discusses the specialized coverage provided by inland marine form PM 00 11. The form broadens the perils covered by the form, and provides specific coverage for engagement rings that have been given to the beloved. See Jewelry and Furs Form.

Stamps and Coin Collection Form

A new article discussing the ISO Stamps and Coin collection form has been published. This article discusses the specialized coverage provided by inland marine form PM 00 12. The form broadens the perils covered by the form, and provides specific coverage for the unique nature of stamps and coins. See Stamps and Coin Collections Form.