To claim benefits under an insurance policy, you generally must comply with all of the obligations under the policy on your end. This includes timely notification of a claim. What is considered “timely notice”? It will depend on the language of the insurance policy, but, without any more clear deadline, the insured must provide prompt…
Legal Articles
Bad Faith Refusal to Settle
Though rarely asserted, there is such a claim as suing an insurance for bad faith for failure to settle a claim. Zumwalt v. Utilities Insurance Co., 228 S.W.2d 750, (Mo. 1950). This is technically different than a statutory vexatious refusal to pay claim. What constitutes “bad faith” for purposes of this claim? As a general matter,…
Collateral Source Rule
Tort damages are designed to be compensatory in nature and make a party whole. The collateral source rule is an exception to this rule. It provides that a wrongdoer is not entitled to have the damages to which he/she is liable reduced by the fact that plaintiff has received or will receive compensation or indemnity for…
Duty to Defend: Insurance Contracts/Policies & Indemnification
Under Missouri law, insurance companies generally have two (2) responsibilities under an insurance policy: (1) a duty to defend and a (2) duty to indemnify. With the duty to defend, that means that an insurance company must hire legal counsel to defend the insured in a legal proceeding. With the duty to indemnify, that means…
Negligent Failure to Procure Insurance
Most think of insurance disputes as relating to the nature and extent of coverage (e.g., uninsured motorist and underinsured motorist) or how much of the policy limits should be paid. There are circumstances, however, when the incorrect insurance is obtained and a claim exists against the insurance agent/broker. An insurance agent/broker who is tasked with…
Equitable Garnishment, Insurance
It is one thing to receive a monetary judgment from a judge/jury and it is an entirely different thing to be able to collect any money from that judgment. The latter is more difficult than most realize. What can make collection easier, however, is when an insurance policy is required to cover the liability for…