Homeowners’ Insurance

1. Homeowners’ Insurance • Broad scope of homeowners’ insurance • Whether child care for pay is excluded as a "business pursuit" or is an exception to this exclusion because it is "incident to non-business pursuit" • Three approaches (Maryland follows Stanley)

2. Intentionally Caused Losses • Haht -11 year old boy can’t form intent • Nationwide v. U. of Ill - A little bit of intent is enough • Punitive Damages – covered in most states in CGL • Employees Stealing – typically not accident or occurrence

3. Toxic Tort and Repeat Exposure Claims • Possible Methods to Determine Coverage • Date of exposure • Date of Injury in Fact • Discovery of harm • Continuous trigger

4. Car Accident Insurance Coverage • Carrie Bradshaw, gets in an accident due to the negligence of Bobby Baccalieri. Carrie is the only injured party in the accident. Her policy is a 100/300 policy; Bobby’s is 20/40. Bobby’s Insurance company and your client’s tender the policies (they offer to pay out the policies, probably because the injuries are substantial). Your client’s insurance company waives subrogation. Your client has a $5,000 PIP policy and $20,000 in meds. You have a 33% contingency fee agreement for the total recovery (and incur no costs in the case). You reduce the medical lien by one-half after negotiations with Carrie’s health insurance company.

5. Hypo Questions • What do you get? • What does Bobby’s insurance company pay? • What does your client’s insurance company pay? • What does your client get? • Changing the facts, what would happen if you instead went to trial because one of the insurance companies refused to tender its policy and received a $500,000 verdict. What is the maximum amount of Carrie’s gross recovery if: • Bobby’s company refuses to tender the policy. • Carrie’s insurance company refuses to tender its uninsured motorist limits.