"Loss in Progress Rule" has been described as follows:
2d at p. 920; Inland Waters Pollution Control, Inc. v. National Union Fire Ins. Co. (Sixth Cir.1993) 997 F. 2d 172, 178.]
At least one court has seen the loss in progress as an attempt to "swallowing up" the "expected or intended" exclusion. The defense is independent of the exclusion of losses "expected or intended" by the insured. A majority of states, unlike California, have violated the old Navy rule under which a misrepresentation of the fact that the insured guaranteed to be true automatically u claimed coverage, regardless of the substance of the incorrect presentation.
Chemstar, Inc., v. Liberty 1
As one court observed, in the first-party case that applies the rule that only covers coverage of the actual occurrence of injury, no injury or damage of any kind has occurred until the manifestation; the cause is instead resting until the latter causes noticeable damage. Ins. Co. of North America v. Forty-Eight Insulations, 633 F. 2d 1212, 1222, fn. 18.
A third insurer may thus be liable if it fits into any part of an ongoing loss, while the first party insurer is only liable if it is at risk when the loss is first manifested. The case Prudential LMI therefore limited the application of the decision to first party insurance. The decision of the most recent Appeal Court has found that the difference is illusory when discussing the loss rule.
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Barry Zalma, Esq., CFE, now limits his practice to an insurance consultant specializing in insurance protection, insurance damage management, bad faith and insurance fraud almost the same for insurers and insurers. He also acts as arbitrator or mediator for insurance-related disputes. He has practiced law in California for more than 44 years as an insurance coverage and attorney management attorney and more than 52 years in the insurance industry. He is available at http://www.zalma.com and firstname.lastname@example.org.
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