Ethics and the Reservation of Rights
Post 4867
https://www.linkedin.com/pulse/covenant-good-faith-ethical-doctrine-barry-zalma-esq-cfe-mvcnf/
September 5, 2024
Posted on September 5, 2024 by Barry Zalma
See the full video at and at https://youtu.be/yhR2vLQ4vAc
An insurer that reserves its rights under a policy of An insurer that reserves its rights under a policy of insurance will usually raise a request by the insured for independent counsel. However, unless the reservation actually raises the need for the application of the ethical duty of an attorney to avoid representing conflicting interests, there is no obligation to retain independent counsel. If that duty exists independent counsel is required. If there is no conflict the insurer may assert its right to control the defense of the insured with counsel of its choice.
FACTUAL BACKGROUND
In Federal Insurance Company v. MBL, Inc., 219 Cal.App.4th 29, after soil and groundwater ...
Proof of Highly Contaminated Water is Required for Extra Payments
Post number 5300
Read the full article at https://www.linkedin.com/pulse/acting-your-own-lawyer-foolish-barry-zalma-esq-cfe-mbg0c, see the video at and at and at https://zalma.com/blog plus more than 5300 posts.
Acting as Your Own Lawyer is Foolish
Evidence of Breach of Contract Survives Dismissal of All Other Charges
In Lee Lifeng Hsu and Jane Yuchen Hsu v. State Farm Fire And Casualty Company, C. A. No. N24C-09-020 CLS, Superior Court of Delaware (February 27, 2026) a claim to State Farm who paid approximately $61,000 after assessments but denied coverage for additional items including ceramic tiles, the kitchen floor ceiling, underlayment plywood, and numerous personal property items resulted in suit by the Hsu’s acting in pro per.
Facts
Lee Lifeng Hsu and Jane Yuchen Hsu (“Plaintiffs”) purchased a homeowners’ insurance policy from State Farm Fire...
Arbitration Award Prevents Bad Faith Claims
Post number 5298
Read the full article at https://www.linkedin.com/pulse/anti-assignment-clause-policy-defeats-attempt-assign-barry-ffmyc, see the video at and at and at https://www.zalma.com/blog plus more than 5250 posts.
Why Consent to $9 Million Judgment and Assignment to Sue Insurer was Worthless
In Carmen Ciotola, as assignee Of Quarterback Transportation, Inc. v. RSA Insurance Group, PLC, et al., Civil Action No. 3:21-1020, United States District Court, M.D. Pennsylvania (March 2, 2026) resolved the dispute brought by Ciotola. Carmen Ciotola, as assignee of Quarterback Transportation, Inc., brought an insurance action against RSA Insurance Group, PLC (now RSA Insurance Group Limited) and its subsidiaries, alleging breach of contract and bad faith.
FACTUAL BACKGROUND
The dispute arose from a motor vehicle accident on November 12, 2018, in Luzerne ...
Counterclaim Seeking Payment of its Fraudulent Bills Fails
Post number 5297
Read the full article at https://www.linkedin.com/pulse/statutory-right-defraud-insurer-barry-zalma-esq-cfe-03c3e, see the video at and at and at https://zalma.com/blog plus more than 5250 posts.
Fraudsters Attempt to Use Statute to Force Payment Fails
In Connecticut General Life Insurance Co. et al. v. East Coast Advanced Plastic Surgery, LLC, No. 25 Civ. 1686 (PAE), United States District Court, S.D. New York (February 24, 2026) a dispute between Connecticut General Life Insurance Company and its subsidiary Cigna Health and Life Insurance Company (collectively, "Cigna" ) and East Coast Advanced Plastic Surgery, LLC ("ECAPS" ), a New Jersey-based medical practice specializing in post-mastectomy breast reconstruction.
Cigna alleged that ECAPS engaged in fraudulent billing practices, resulting in excessive payments for services rendered ...
Rescission of a Life Insurance Policy
Misrepresenting the Use Of Drugs Makes Policy Void from its Inception
Post number 5299
Posted on March 9, 2026 by Barry Zalma
In Primerica Life Insurance Company v. Rosalia Castillo Bucio, an individual; Hipolito Castillo Bucio, an individual No. 3:24-cv-01567-RBM-KSC, United States District Court, S.D. California (March 2, 2026) Primerica Life Insurance Company sued Rosalia Castillo Bucio and Hipolito Castillo Bucio, seeking to rescind a term life insurance policy issued to Gilberto Castillo.
FACTUAL BACKGROUND
. The policy, valued at $614,000, named the defendants as co-beneficiaries. Castillo submitted an application on January 15, 2020, in which he denied any history of drug or alcohol abuse in the past ten years. However, after Castillo’s death on March 28, 2021, medical records revealed that he had used methamphetamine and cocaine prior to the application date, contradicting his representations. Both defendants subsequently filed claims for the death benefit, prompting...
Contract Breaches that Allow Multiple Different Grounds to Make a Policy Void
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Posted on February 24, 2026 by Barry Zalma
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If an insured breaches one or more material warranties and increases the risk covered by the policy, the contract may be voided by the insurer, depending on the jurisdiction. It is, therefore, essential that every claims investigation include efforts to establish compliance with every warranty.
In Cummings v. Fire Insurance Exchange, 292 Cal. App. 3d 1407, 249 Cal. Rptr. 568 (1988), the Court of Appeal ...
Passover for Americans
Posted on February 19, 2026 by Barry Zalma
“The Passover Seder For Americans”
For more than 3,000 years Jewish fathers have told the story of the Exodus of the enslaved Jews from Egypt. Telling the story has been required of all Jewish fathers. Americans, who have lived in North America for more than 300 years have become Americans and many have lost the ability to read, write and understand the Hebrew language in which the story of Passover was first told in the Torah. Passover is one of the many holidays Jewish People celebrate to help them remember the importance of G_d in their lives. We see the animals, the oceans, the rivers, the mountains, the rain, sun, the planets, the stars, and the people and wonder how did all these wonderful things come into being. Jews believe the force we call G_d created the entire universe and everything in it. Jews feel G_d is all seeing and knowing and although we can’t see Him, He is everywhere and in everyone.We understand...
