Zalma on Insurance
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Insurance Claims professional presents articles and videos on insurance, insurance Claims and insurance law for insurance Claims adjusters, insurance professionals and insurance lawyers who wish to improve their skills and knowledge. Presented by an internationally recognized expert and author.
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September 05, 2024
THE COVENANT OF GOOD FAITH IS AN ETHICAL DOCTRINE

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 ...

00:09:03
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October 13, 2025
Failure to File Suit Promptly is Fatal

See the full video at and at and at https://zalma.com/blog plus more than 5200 posts.

Private Limitation In Accordance With Statute Defeats a Claim

Post 5204

There is No Good Reason to Delay Filing Suit

In Christian Care Center v. American Alternative Insurance Corporation, Civil Action No. 4:25-CV-00321-O, United States District Court, N.D. Texas, Fort Worth Division (October 6, 2025) a private limitation of action provision effective barred the suit.

KEY FACTS:

Plaintiff and Defendant:

The case involves an insured, the Christian Care Center (Plaintiff) and its insurer American Alternative Insurance (Defendant) in a coverage dispute.

Loss Event:

Plaintiff’s property sustained damage due to a storm on April 27, 2020.
Insurance Claim:

Plaintiff submitted a claim to Defendant on February 2, 2022, which was denied on July 29, 2022.

Lawsuit:

Plaintiff sued alleging breach of contract and violations of Chapters 541 ...

00:08:11
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Live chatted 10/10/2025
October 10, 2025
Failure to File Suit Promptly is Fatal

See the full video at and at and at https://zalma.com/blog plus more than 5200 posts.

Private Limitation In Accordance With Statute Defeats a Claim

Post 5204

There is No Good Reason to Delay Filing Suit

In Christian Care Center v. American Alternative Insurance Corporation, Civil Action No. 4:25-CV-00321-O, United States District Court, N.D. Texas, Fort Worth Division (October 6, 2025) a private limitation of action provision effective barred the suit.

KEY FACTS:

Plaintiff and Defendant:

The case involves an insured, the Christian Care Center (Plaintiff) and its insurer American Alternative Insurance (Defendant) in a coverage dispute.

Loss Event:

Plaintiff’s property sustained damage due to a storm on April 27, 2020.
Insurance Claim:

Plaintiff submitted a claim to Defendant on February 2, 2022, which was denied on July 29, 2022.

Lawsuit:

Plaintiff sued alleging breach of contract and violations of Chapters 541 ...

00:08:11
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October 08, 2025
Insured Can’t Assign Bad Faith Claim

Insured May Intervene to Assert Bad Faith Claim Not Assigned

Post 5203

See the full video at https://rumble.com/v7013x8-insured-cant-assign-bad-faith-claim.html and at https://youtu.be/e8OApzn6YZs, and at https://zalma.com/blog plus more than 5200 posts.

Judge Requires Conflict Between Different District Courts in Louisiana Requires Conflict to be Resolved on Appeal

In Allstate Construction, Inc. v. Ohio Security Insurance Company, Civil Action No. 23-01295-BAJ-SDJ, United States District Court, M.D. Louisiana (September 30, 2025) Vina Cleaners, the insured, assigned its claim against Ohio Security to Allstate Construction but did not assign its rights to sue for the tort of bad faith so it intervened in Allstate Construction’s suit.

Background and Procedural History:

In an insurance dispute following damage caused by Hurricane Ida to Vina Cleaners’ property. Vina Cleaners was insured under a commercial policy with the Defendant, Ohio Security Insurance Company. Vina Cleaners assigned its rights ...

00:07:47
23 hours ago
The Zalma Philosophy of Claims Handling – Part I

The History Behind the Creation of a Claims Handling Expert

The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail
Post 5210

This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.
My Training to be an Insurance Claims Adjuster

When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.

I was initially sat at a desk reading a text-book on insurance ...

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23 hours ago
The Zalma Philosophy of Claims Handling – Part I

The History Behind the Creation of a Claims Handling Expert

The Insurance Industry Needs to Implement Excellence in Claims Handling or Fail

Post 5210

This is a change from my normal blog postings. It is my attempt. in more than one post, to explain the need for professional claims representatives who comply with the basic custom and practice of the insurance industry. This statement of my philosophy on claims handling starts with my history as a claims adjuster, insurance defense and coverage lawyer and insurance claims handling expert.

My Training to be an Insurance Claims Adjuster

When I was discharged from the US Army in 1967 I was hired as an insurance adjuster trainee by a professional and well respected insurance company. The insurer took a chance on me because I had been an Army Intelligence Investigator for my three years in the military and could use that training and experience to be a basis to become a professional insurance adjuster.

I was initially sat at a desk reading a text-book on insurance ...

post photo preview
October 17, 2025
Abstention Protects Against The Risk of Potentially Contradictory Fact Finding

Sometimes the Best Court Decision is to Do Nothing

Post 5209

Read the full article at https://www.linkedin.com/pulse/abstention-protects-against-risk-potentially-fact-zalma-esq-cfe-chkzc, and at https://zalma.com/blog plus more than 5200 posts.

In Starr Indemnity & Liability Company v. Scottsdale Insurance Company, No. 24-CV-3309 (PKC) (TAM), United States District Court, E.D. New York (September 30, 2025) the parties C.C.C. and HCC filed actions against Scottsdale in New York state court regarding Scottsdale’s insurance coverage obligations.

FACTS

Underlying Labor Litigation:

Hector David Campoverde sustained injuries from a scaffold fall at a construction site in Brooklyn, New York, on September 14, 2015. Campoverde, an employee of Vazquez Bro Restoration Inc., was working for C.C.C. Renovation Inc., a subcontractor of L&M Builders Group LLC.

LEGAL ISSUES

Declaratory Judgment:

Starr sought a declaratory judgment regarding Scottsdale’s obligations under the 2014-2015 and 2015-2016 policies.
Abstention ...

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