The article of the month deals with the doctrine of reasonable expectations. This doctrine is a legal doctrine stating that the objectively reasonable expectations of applicants and intended beneficiaries regarding the terms of insurance contracts will be honored even though painstaking study of the policy provisions would have negated those expectations. As the courts that have adopted this doctrine see it, the doctrine was necessary to protect individuals with little knowledge of insurance that buy standard policies. This is not to say that all courts have adopted the doctrine or agree on the facts that must be shown for the doctrine to apply.

The article of the month provides case law on the subject as well as information on the development and applicability of the reasonable expectations doctrine. .

The court cases this month come from a United States District Court and the United States Court of Appeals, Eighth Circuit. The District Court handled a case wherein the insurer claimed its policy did not apply, and it owed no duty to defend the insured because the insured allegedly was guilty of knowing misconduct and intentional acts. The court examined the allegations of the complaint against the insured and found that the facts did not support the insurer's contentions. The U.S. Circuit Court dealt with a claim for alleged infringement of a trademark. The insurance policy excluded coverage for lawsuits based on trademark infringement but granted coverage for lawsuits based on infringement of slogan. So, the court had to decide if the insured infringed on a trademark or on a slogan.

The Dec Page also offers an item reprinted with permission from the National Association of Insurance Commissioners (NAIC). This item spells out principles for effective cybersecurity regulatory guidance that NAIC obtained from the Securities Industry and Financial Markets Association.

Questions and Answers

Are snow blowers considered to be yard equipment? See Snow Blower as Yard Equipment. Is the weight of snow on solar panels considered a collapse? See Collapse of Solar Panels due to Weight of Snow. When trees are damaged, is there coverage for damage to the tree and costs for removal? See Damage to Trees and Removal of Debris. When bees create a hive that leaks honey into the interior of the walls, is there coverage? See Honey from Bee Hive Leaks into Dwelling. What happens when an insured and a carrier cannot agree on a settlement? See Appraisal and Mediation.

Motorized Golf Carts

An inland marine form specific to motorized golf carts is available through ISO. Form PM 00 33 provides coverage for golf carts when used on a residence premises or on a golf course. Since golf carts are motorized vehicles but not automobiles, an inland marine form is the best way to provide coverage. See Motorized Golf Carts Form.

Contractors Equipment Coverage Form

ISO offers the Contractors Equipment Coverage Form, IH 00 68 12 13. This is part of its program for nonfiled commercial IM exposures. This new article discusses the coverage available on the form. See Contractors Equipment Coverage Form.

Insuring Dance Studios

Dance studios have their own special needs when it comes to insurance. While not having a lot of contents, the floors need to be special material, mirrors and bars are affixed to the walls, and there are extensive liability concerns. This article discusses the concerns and insurance needs of dance studios. See Insuring Dance Studios.