Insurance Coverage Update: Competing “Other Insurance” Clauses
Other Insurance clauses are a common feature of insurance policies. However, they do not all contain the same wording. When losses arise, and an insured has several insurance policies potentially responding, the “other insurance” clauses from policy to policy can be in conflict, and essentially “compete” to determine which policy ought to respond first. These exciting competitions infrequently make their way to a court, and so are noteworthy when they do.
Note to Insurers: Choose your Position, and Tell your Insured
The recently released case of Demetriou v AIG Insurance Co of Canada, provides further insight on insurer conduct that can attract punitive damages. Following an insurers denial of a claim for a stolen ring, Justice Gray granted the insured plaintiff summary judgement and awarded $50,000 in punitive damages against the insurer.