Watch the full video at https://rumble.com/vdx1jr-a-video-explaining-the-need-to-defend-the-bad-case.html and https: // youtu. be / iLYMdvHxIZU
The obligation to defend is not limited to cases where the lawsuit against the insured is viable. The obligation covers those brought against insured persons who are bad, false or fraudulent.
In Wild v. Subscription Plus, Inc. 292 F.3d 526 (7th Circ. 05/31/2002) the Seventh Circuit faced a dispute over the obligation to defend when it was found that The insurer Scottsdale had no obligation to reimburse the two insured, as the accident was not covered by the policy after all. Scottsdale appealed the verdict that it had an obligation to defend. It also appealed from the court's correlative decision, based on the Oklahoma Insurance Act, that it compensates the insured at the expense of defending the claim.
An insured has the burden of proving that a claim falls within the insurance's coverage. . Addison Insurance C o. v. F ay, 376 Ill.App.3d 85, 88, 314 Ill.Dec. 680, 875 N.E.2d 190 (2007). When the insured meets this burden, the insurer has the burden of proving that the loss was limited or excluded by a contractual provision. Stoneridge Development Co. v. Essex Insurance C o., 382 Ill.App.3d 731, 749, 321 Ill.Dec. 114, 888 NE2d 633 (2008).
© 2021 – Barry Zalma
Barry Zalma, Esq., CFE, now limits his practice to working as an insurance consultant specializing in insurance coverage, insurance management, bad faith insurance and insurance fraud almost more for insurance policyholders. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and firstname.lastname@example.org.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurers.
Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ Read posts from Barry Zalma at https://parler.com/profile/Zalma/ posts; and Read the last two issues of ZIFL here.