Civil Authority Coverage Inapplicable Because Employees and Patients Had Access The United States District Court for the Northern District of Illinois, in an opinion by Judge Reinhard, applying Illinois law, dismissed with prejudice the amended complaint filed by Riverside Dental of Rockford, Ltd. (“Riverside”) against Cincinnati Insurance Company (“Cincinnati”). Riverside purchased a commercial property insurance policy which included a building... Read More
Potential Coverage if Not Faced with Virus Exclusion The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kocoras, applying Illinois law, denied Continental Casualty Company’s (“Continental”) motion to dismiss its insureds’ first amended class action complaint. The insureds sought coverage under policies issued by Continental for losses stemming from COVID-19. Specifically, the... Read More
Virus Exclusion Bars Coverage for Lost Business Income The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kennelly, applying Illinois law, granted Westfield National Insurance Company’s (“Westfield”) motion to dismiss a complaint brought by two of its insureds stemming from losses due to COVID-19. The insureds sought declaratory judgment and alleged,... Read More
Lost Diamond Ring “Being Worn” Requirement a Fact Question The United States District Court for the Northern District of Illinois, in an opinion written by Judge Kness, applying Illinois law, denied Crestbrook Insurance Company’s (“Crestbrook”) motion for judgment on the pleadings after finding that Crestbrook did not prove, beyond a doubt, that the term “being worn” was unambiguous. Crestbrook filed... Read More
Insurer May Sue Defense Counsel Retained to Defend its Insured An accounting firm that Arch Insurance Co. insured, Spear Safer, was sued for accounting malpractice. Arch defended Spear Safer under a professional liability policy that gave the insured the right to appoint legal counsel with Arch’s consent. Arch retained Kubicki Draper to represent its insured and the case eventually... Read More
Coverage Action Limited to Reasons Stated in Denial Letter The United States District Court for the District of Rhode Island, applying Rhode Island law, held that when an insurance company denies coverage, it should be held to the reasons given to its insured in its denial letter and later barred from introducing into evidence or arguing for any grounds that... Read More
Models’ Negligence Allegations against Strip Club Triggers Duty to Defend The United States District Court for the Northern District of Illinois, in an opinion written by Judge Feinerman, applying Illinois law, granted, in part, Triple Location LLC’s motion for summary judgment as to its insurer First Mercury Insurance Company’s (“First Mercury”) duty to defend. The underlying case concerns three models who... Read More
The United States Court of Appeals for the Seventh Circuit, in an opinion by Judge Kanne, interpreting §155 of the Illinois Insurance Code (bad faith), reversed the decision of the district court following a bench trial and instructed the lower court to dismiss the §155 claim in this “admittedly atypical” case. Creation Supply, Inc. (“CSI”), a seller of writing markers,... Read More
Disclosure to 3rd Party a “Publication” – “Violation of Statute” Exclusion Inapplicable The Illinois Supreme Court, in an opinion written by Justice Neville, applying Illinois law, affirmed the lower courts’ rulings and held that the insurer had a duty to defend claims for violations of the Biometric Information Privacy Act (“BIPA”) because the disclosure of fingerprint data to a third... Read More
Corporate Successor to OneBeacon, Commercial Union, Employers Fire, et al. The Bedivere Insurance Company, f/k/a OneBeacon Insurance Company, Commercial Union Insurance Company, et al. (collectively “Bedivere”) was placed into liquidation by the Pennsylvania Commonwealth Court on March 11, 2021, following a Petition for Liquidation filed by the Insurance Commissioner of the Commonwealth of Pennsylvania. All claims and litigation against Bedivere... Read More
