South Carolina Lawyers Weekly

Mar 15, 2013

Insurance – No Consent to Tax on Flood Insurance Premiums

Municipal Ass’n of South Carolina v. USAA General Indemnity Co. In this dispute between insurance companies that offer flood insurance under a federal program in South Carolina, and a group of South Carolina municipalities that want to assess a business license tax on the carriers based on the flood insurance premiums collected in the municipalities under an arrangement with FEMA, the d[...]

Mar 15, 2013

Insurance – No Defamation Defense Under Renter’s Policy

Francis v. Allstate Insurance Co. Although a parent defending a defamation suit says her only intention in accusing an aide at the Maryland School for the Deaf of sexually abusing her son was to protect the child, the accusation nevertheless was an intentional act, and not an “occurrence” under her renter’s insurance policy that would trigger Allstate’s duty to defend; applying C[...]

Mar 14, 2013

Insurance – Real Property – Real Estate Agent – Professional Liability Policy – Duty to Defend

Greenwich Insurance Co. v. Garrell The record must be developed further before the court can decide whether, before the insurer issued its professional liability policy, the defendant-real estate agent knew that claims would be made against him based on litigation between a potential customer and an entity that the real estate agent helped to form.

Feb 26, 2013

Insurance – Professional Liability Policy – Agents & Brokers – Unsolicited Faxes – No Coverage

BCS Insurance Co. v. Big Thyme Enterprises The plaintiff-insurer provides professional liability coverage for the defendant-agent when he renders “specialized services … to a Client as a licensed Life, Accident and Health Insurance Agent.”

Feb 20, 2013

Insurance CGL – Attorney’s Fee & Bad Faith Claims – Third Party Canopius

US Insurance, Inc. v. Sloan While an insured is entitled to attorney’s fees when he prevails in a declaratory judgment action brought by an insurance company, third-party claimants do not have standing to assert claims arising out of an insurer’s breach of contract with its insured.

Feb 20, 2013

Insurance – Auto – UM – Personal Injury — Attempt to Stop Car Theft – John Doe Statute

Morris v. Doe Where plaintiff was injured while trying (unsuccessfully) to stop a thief from stealing her car, her uninsured motorist claim is not automatically barred by the John Doe Statute or her auto insurance policy’s UM provision.

Feb 18, 2013

Insurance – Motorcycle – UIM – No Reformation – Offer & Rejection – Fact Inquiry

Cohen v. Progressive Northern Insurance Co. Where the defendant-insurance company’s agent filled out the insurance application, the insurer was not entitled to the presumption provided in S.C. Code Ann. § 38-77-350(b) (i.e., that the offer of underinsured motorist coverage complied with S.C. Code Ann. § 38-77-160); however, the trial court could still – and did -- make the factual [...]

Feb 11, 2013

Insurance – Long-Term Care – Bad Faith Claim – Timely – Payment

Temple v. Mutual of Omaha Insurance Co. In cases of bad faith denial of insurance coverage, S.C. courts have held that the covenant of good faith and fair dealing extends not just to the payment of a legitimate claim, but also to the manner in which it is processed.

Feb 11, 2013

Insurance – Life – Breach of Contract – Tort/Negligence – 20-Year Policy

Chestnut v. American General Life Insurance Co. Plaintiff applied for a 20-year term life insurance policy; the defendant-insurer lowered plaintiff’s premium without informing him that it was doing so because plaintiff only qualified for a 10-year policy.

Feb 5, 2013

Insurance – Rented Motorcycle – Excess Coverage – No Uninsured Motorist Coverage – N.C. Law

Kamp v. Empire Fire & Marine Insurance Co. When he rented a motorcycle from a Charlotte, N.C. franchise, plaintiff bought supplemental insurance of “up to $1,000,000.” However, that supplemental coverage was explicitly excess liability coverage and did not include uninsured motorist coverage.

Feb 5, 2013

Insurance – CGL Policy – Septic Tank Failure – Loss of Use — ‘Impaired Property’

State Auto Property & Casualty Insurance Co. v. Howard Even though the defendant-septic contractor’s commercial general liability policy covers “loss of use”, since the defendant-homeowners’ property was restored by the replacement of the defective septic tank, their loss of use claim is barred by the policy’s “impaired property” exclusion.

Jan 29, 2013

Insurance – Life – Application – Misrepresentations – Intent to Defraud – Directed Verdict

Shenandoah Life Insurance Co. v. Smallwood The evidence would have supported several explanations for why the decedent gave false answers to questions on his life insurance application about his alcohol and drug use.