For insurance policy language which limits coverage to “damage which occurs during the policy period,” there is no coverage for damages accidentally occurring after the policy expiration, but resulting from a delictual act committed during the policy period. Oceanonics, Inc. v. Petroleum Distributing Company, 292 So.2d 190 (La.1974).
The standard commercial general liability policy contains “work-product” exclusions. “These exclusions reflect the intent of the insurance industry to avoid the possibility that coverage under a CGL policy will be used to repair and replace the insured’s defective products and faulty workmanship.” McKenzie & Johnson, 15 La. Civil Law Treatise,…
“Claims Made” policy: coverage is effective only if the negligent harm is discovered and reported within the policy term. “Occurrence” policy: coverage is effective if the negligent harm occurs within the policy period, regardless of the date of discovery. Livingston Parish School Board v. Fireman’s Fund American Insurance Co., 282…
Because of a liability insurer’s obligation to its insured not to arbitrarily refuse reasonable offers of settlement within policy limits when faced with liability in excess of the policy limits, a liability insurer faced with multiple claims to inadequate insurance proceeds is generally not required to prorate the proceeds, but…
For UM policies that require the uninsured or underinsured owners’ or operators’ liability for damages caused by an accident to “arise out of the ownership, maintenance, or use of the uninsured motor vehicle,” the Courts are required to answer two separate questions: 1. Was the conduct of the uninsured of…
Legal interest on a UM claim begins to run from the date of the original judicial demand against any solidary obligor, regardless of the language in the insurance policy. Ainsworth v. Government Employees Ins. Co., 433 So.2d 709 (La.1983); and Burton v. Foret, 498 So.2d 706, 712 (La.1986).
Prescription on actions for the recovery of damages sustained in automobile accidents brought pursuant to UM (uninsured/underinsured) provisions in automobile liability insurance policies is 2 years from the date of the accident in which the damages were sustained. La.R.S. 9:5639. Timely suit against the tortfeasor interrupts prescription as to the…
The Louisiana Supreme Court in Valentine v. Bonneville Ins. Co., 691 So.2d 665 (La.1997), held that the automobile liability insurance policy definition of “occupying” as “in, upon, getting in, on, out, or off” was clear and unambiguous, and therefore did not extend coverage to a deputy sheriff who was directing…
A guest passenger cannot recover under both the liability and UM coverages of the host driver’s insurance policy when the negligence of the host driver is the sole cause of the accident. Nall v. State Farm Mut. Auto. Ins. Co., 406 So.2d 216 (La. 1981). However, if the guest passenger…
Rejection of UM coverage or selection of lower limits of UM coverage in Louisiana shall be on a form prescribed by the Louisiana Commissioner of Insurance and shall be provided by the insurer and signed by the insured or his legal representative. A UM rejection or selection of lower limits…