Insurance Law Commons^™

Liability Insurance - Cooperation Clause - Failure Of Cooperation Absent A Finding Of Prejudice, Edward B. Stulberg S.Ed.

Michigan Law Review

Plaintiff insurance company sought a declaratory judgment absolving it from obligation on an automobile liability insurance policy on the ground that there had been a breach of the cooperation clause. Johnston, the insured, was the driver of a car involved in an accident in Crawford County, Kansas, giving rise to substantial claims by defendant Elliott. At the request of Elliott's attorney, Johnston traveled from his home in Kansas to submit to service of process in Missouri. When plaintiff questioned this behavior, Johnston lied, denying that collusion had prompted his appearance in Missouri. On appeal from summary judgment for plaintiff company, …

Allocating Tenant Tort Liability Through The Fire Insurance Policy

Indiana Law Journal

No abstract provided.

Atomic Energy - Indemnity Legislation - Anderson Amendments To The Atomic Energy Act Of 1954, Dudley H. Chapman S.Ed.

Michigan Law Review

The Anderson Amendments were enacted to encourage private industry to enter the atomic energy field by removing the risk of excessive liability for a major nuclear reactor disaster. Such a disaster could result in liability far in excess of available insurance coverage. The solution provided by the new legislation has three aspects: (1) After private financial protection, geared to the amount of available insurance, is obtained by a person licensed by the Atomic Energy Commission, (2) the Commission will execute an agreement to indemnify (not insure) the licensee and "any other person who may be liable for public liability" to …

Insurance - Recovery - Delay Of Insurance Company In Rejecting Application For Insurance, Harry D. Krause S.Ed.

Michigan Law Review

Plaintiff, designated as beneficiary by deceased life insurance applicant, sued defendant life insurance company in assumpsit. Deceased, a combat pilot in the Korean War, had applied for one of defendant's policies, passed the medical examination, and made several premium payments on the policy. After the applicant was killed in combat defendant refused payment, contending that it had never accepted the risk but that it had responded to the application with a counter offer containing an aviation waiver. Because of ·the applicant's frequent change of address and his early death this proposal had never been communicated to him. On appeal from …

Municipal Corporations - Tort Liability - Purchase Of Liability Insurance As Waiver Of Immunity, Alice Austin S.Ed., William C. Becker

Michigan Law Review

According to a well-established common law rule, a municipal corporation is immune to tort liability for wrongs committed in the performance of governmental or public functions, although it is liable for torts committed in the performance of corporate or proprietary functions. This immunity generally cannot be waived without the authorization of the state legislature, and this authorization must be very clearly stated. Interesting questions arise, therefore, when a municipality, with or without statutory authorization, takes out a liability insurance policy covering itself or its agents, or when it causes its agents to take out bonds for faithful performance. The questions …

Joint Tortfeasors In Tennessee And The New Third-Party Statute, Robert W. Sturdivant

Vanderbilt Law Review

Chapter 145 of the 1955 Public Acts' enacted by the Tennessee Legislature, purporting in some degree to permit a third-party action, has evoked considerable interest among members of the Tennessee Bar and liability insurance carriers.

The act provides that when a defendant deems some other party primarily liable to the plaintiff, then the defendant may file a cross action against the third party. It will be recalled that when the Federal Rules of Civil Procedure were first promulgated, Rule 14 provided that a defendant, deeming a third party liable to himsel for to the plaintiff, could make such third party …

Conflict Of Laws - Due Process And Full Faith And Credit - Direct Action Statute, Harvey A. Howard S.Ed.

Michigan Law Review

Defendant issued a liability insurance policy to the manufacturer of a hair-waving product, an Illinois subsidiary of a Delaware corporation having its headquarters in Massachusetts. The policy, issued in Massachusetts and delivered in Massachusetts and Illinois, was to protect the insured against damages that might be suffered by users of the product anywhere in the United States or Canada. It contained a "no action" clause enforceable under Massachusetts and Illinois law prohibiting direct actions against the insurer until final determination of the insured's liability, either by judgment or agreement. Alleging injuries sustained in Louisiana where the product was bought and …

Municipal Corporations - Waiver Of Immunity To Suit By Purchase Of Liability Insurance, Chester F. Relyea S.Ed.

Michigan Law Review

The City of Knoxville owned and operated a municipal airport under authority of a state statute which permitted a municipality to acquire, maintain, and operate a municipal airport in its governmental capacity, and which barred suits against the municipality with respect to its operation of the airport. The city carried a policy of liability insurance covering it in the ownership and operation of the airport. Plaintiff was injured by a fall at the airport terminal building, and instituted a negligence action against the city. The city moved for dismissal, relying upon the immunity given it by the statute. Held, …

Torts--Inducing Breach Of Contract--Attorney-Client Contingent Fee Contract, Richard W. Pogue

Michigan Law Review

Plaintiff, a practicing attorney, undertook on a contingent fee basis to represent a husband and wife in separate claims for damages alleged to have been suffered by them through the negligence of the driver of a motor vehicle. The driver was insured under a policy issued by defendant. Defendant had notice of the contract. After plaintiff had started suit on the damage claim and as the case was about to be tried, defendant's adjusters, without knowledge on the plaintiff's part, allegedly induced the clients to discharge the plaintiff (and "thereby break their contingent fee contract with him") and subsequently to …

Recent Cases, Law Review Staff

Vanderbilt Law Review

RECENT CASES

ATTORNEYS--REINSTATEMENT PROCEEDINGS--JURISDICTION OF DISBARRING COURT

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AUTOMOBILE LIABILITY INSURANCE--ESTOPPEL BY JUDGMENT--PRIOR JUDGMENT AGAINST INSURED AS BAR TO INSURER'S DEFENSE OF LACK OF COVERAGE

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BURGLARY INSURANCE--CRIMINAL ACT OF EMPLOYEE OF INSURED--HARM TO THIRD PERSON AS JUSTIFICATION

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CHATTEL MORTGAGES--MORTGAGEABILITY OF I.C.C. CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY--APPROVAL OF COMMISSION AS CONDITION PRECEDENT

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CONSTITUTIONAL LAW--DUE PROCESS--MANDATORY MINIMUM PRICE MARK-UPS ON INTOXICATING LIQUORS

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CONSTITUTIONAL LAW--OATH OF ALLEGIANCE AND OATH OF OFFICE--POWER OF LEGISLATURE TO ENLARGE UPON CONSTITUTIONAL PROVISION

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CONVEYANCES--CONSTRUCTION OF LIMITATIONS--ENTAILING LANGUAGE AS WORDS OF PURCHASE OR WORDS OF INHERITANCE

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CRIMINAL LAW--PRIVILEGE OF SELF-DEFENSE--DUTY OF OCCUPANTOF …

Insurance-Effect Of Liability Insurance On Parent's Immunity From Tort Liability To Child

Washington and Lee Law Review

No abstract provided.

Torts-Liability Insurance As Affecting A Charitable Corporation's Immunity From Tort Liability

Washington and Lee Law Review

No abstract provided.

Owner's Liability For Harm Done By Thief Operating Stolen Vehicle

Indiana Law Journal

Notes: Torts

Legal Liability For War Damage, John Hanna

Michigan Law Review

This article considers some of the rules for determining liability for economic loss in respect of war claims, especially as applied in connection with claims of life insurance companies for loss of premiums, of insurers of property for war risk insurance premiums, of property insurers for sums paid to foreign policyholders on war losses, and of owners seeking to recover for loss of expected profits. The rules discussed are broadly applicable to international claims in general.

Negligence - The "Same Hazard" Principle - Nonliability In Event Of Injury From A Hazard Of Different Type From That Which Justified Imposition Of Duty To Use Due Care, Michigan Law Review

Michigan Law Review

In a previous suit by plaintiff against a policy holder, defendant, who was the insurer and conducted the defense for the insured, rejected an offer made by plaintiff to settle the claim for less than the policy limit, which was $5,000. There was thereafter a verdict for plaintiff for $7,500, which was satisfied to the amount of $5,000. Plaintiff then brought an action against the defendant insurance company in the name of the policy holder to recover the remainder of the judgment on the ground that defendant was negligent in rejecting the plaintiff's settlement offer. Held, plaintiff stated no …

Insurance - Defenses Of Liability Insurer Against Third Party Injured By Assured Under Statute Giving Injured Party Right Of Action Against Insurer - Constitutionality, Michigan Law Review

Michigan Law Review

Plaintiff, having recovered a judgment against insured defendant for injuries sustained in an automobile accident, filed a supplemental bill against defendant's insurer to recover the 'insurance money. The statute granting plaintiff this right provides that whenever damage occurs for which the insured is responsible, the liability of the insurer "shall become absolute," and upon his obtaining a judgment against the assured, the injured person shall be entitled to have the insurance money applied to satisfy the judgment. The insurer defended on the ground that the insured violated a condition of the policy by failing to cooperate in the defense of …

Insurance - Delay In Acting On Application - Tort Liability, William C. Wetherbee Jr.

Michigan Law Review

Appellant, administrator of the deceased's estate, sued the defendant for damages caused by its negligent failure to accept or reject deceased's application for life insurance within a reasonable time. A deposit had been made on the premium, and, but for the delay, the policy would have been approved and the deceased covered by it at the time of his death. The jury returned a verdict for the appellant, who appealed when the judge rendered judgment non obstante veredicto in favor of appellee. Held, that the insurance company was under no duty to accept or reject the application within a …

Insurance - Exclusionary Clauses - Death Due To Violation Of The Law By The Insured, Robert A. Solomon

Michigan Law Review

When a person carrying a life or accident insurance policy dies as the result of an act committed by him in violation of the law, the beneficiaries may or may not be precluded from recovering upon it. In the absence of a special exclusionary clause, the general view is that the beneficiary may recover. However, if it appears that at the time the insured took out the policy he intended to commit a crime recovery is barred, at least if the death occurred within the contestability period. In order to delimit from the general coverage provisions the risks that would …

Duress By Third Party--Economic Compulsion Applied By Beneficiary Of Duress--Avoidance Of Release Therefor, W. E. N.

West Virginia Law Review

No abstract provided.

Insurance - Waiver And Estoppel As Applied To Excepted Risks, Michigan Law Review

Michigan Law Review

The appellee insurance company issued a policy of automobile liability insurance covering a motor truck owned by appellant, which policy stated that the occupation of assured is "handling farm machinery, crane fixtures and paints," and that the use made of the truck should be commercial ("commercial" being defined as "the transportation or delivery of goods, merchandise or other materials, and uses incidental thereto, in direct connection with the named assured's business occupation . . . including the loading and unloading thereof"). Appellant began to transport tanks of butone gas, which fact was known by appellee's agency on the date the …

Tort Liability Of Insurer For Failure To Act Promptly On Application, R. Doyne Halbritter

West Virginia Law Review

No abstract provided.

Insurance-Delay In Acting On Application-Tort Liability

Michigan Law Review

Plaintiff sued for damages for alleged negligence of defendant in failing to take action within a reasonable time upon plaintiff's application for a policy of health and accident insurance, plaintiff having paid defendant's soliciting agent the premium quoted by him. Held, there is no liability, since there is no duty for defendant to accept or reject an application within a reasonable time. Schliep v. Commercial Casualty Ins. Co., 191 Minn. 479, 254 N. W. 618 (1934).

Torts - Contribution Between Joint Tortfeasors - Right Of Insurer To Contribution

Michigan Law Review

One C negligently drove her car into an obstruction on the highway placed there by defendant. The accident occurred at night and the defendant had failed to place a light on the obstruction to indicate its presence to motorists. At the time of the accident M was a guest in C's car and suffered injuries as a result of the collision. Plaintiff, insurance carrier for C, settled with M for the injuries sustained and obtained a release covering the liability of all parties. Plaintiff as subrogee of C's rights brought the present action to recover contribution from …

Insurance - Failure To Act Promptly On Application - Tort Liability Of Insurer

Michigan Law Review

Although mere delay in passing upon an application for insurance cannot, as a rule, be construed as an acceptance of the offer for a contract of insurance, in recent years some courts have held insurance companies liable in tort where there has been delay in acting upon the policy and the loss sought to be insured against has occurred in the meantime. Plaintiff, to sustain a cause of action in tort, must prove negligence on the part of the insurer, or its agents, and that the policy would have been issued to the applicant but for the negligence. The suit …

Warehousemen-Duty To Use Ordinary Care-Recovery For Negligence

Indiana Law Journal

No abstract provided.

Survival Of Action--Liability Insurance--Direct Right Against The Insurer, James E. Hogue Jr.

West Virginia Law Review

No abstract provided.

Insurance-Liability Of Insurance Company For Negligence In Exercising Its Option To Settle Or Defend

Michigan Law Review

In a recent New Hampshire case, the plaintiff had insured with defendant company against liability for personal injuries to plaintiff's employees not exceeding $5,000.00. The policy under the title of "Service" provided that defendant would investigate all claims and settle them "according to the law". The defendant insurer also agreed to defend such suits as might be brought against plaintiff because of such injuries. One of plaintiff's employees was injured and though he offered to settle for $1,300.00, the defendant refused the offer. Thereupon the employee sued and recovered $13,500.00 in an action defended by defendant company according to their …

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.