Owner of Property Not Named as Insured Has No Standing
Post number 5280
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When Ownership in Property Changes it is Essential to Cause the Policy to Name the New Owner as Insured
In Joyce Lynn Serauskas v. Liberty Mutual Fire Insurance Co., No. 25-cv-12474, United States District Court, N.D. Illinois, Eastern Division (February 4, 2026) in August 2024 a fire damaged a home on West 51st Street in Chicago. Joyce Lynn Serauskas filed an insurance claim with Liberty Mutual Fire Insurance Co., under a homeowner’s policy originally issued to her mother, Estelle Bielecki, in 1978.
FACTUAL BACKGROUND
The policy had been automatically renewed every year with premiums paid on time, including at the time of the fire. However, Estelle Bielecki had passed away in 2010, and Serauskas had continued to reside in the home and pay premiums.
Eventually Serauskas acquired full ownership before the fire.
LEGAL ISSUES
Serauskas brought claims for breach of contract and for vexatious and unreasonable conduct under § 155 of the Illinois Insurance Code. She also asserted estoppel and equitable lien claims, arguing Liberty Mutual created a reasonable expectation of coverage by accepting premiums and issuing renewals after Estelle’s death. Liberty Mutual moved to dismiss, challenging standing and the sufficiency of Serauskas’s claims under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6).
DISCUSSION AND ANALYSIS
The policy was issued to her deceased mother but Serauskas had paid premiums and lived at the property for years. Standing implicates the court’s subject-matter jurisdiction. Rule 12(b)(6) examines the legal sufficiency of the claims, requiring that factual allegations plausibly suggest the existence of jurisdiction and a viable claim. The court noted that standing is a fundamental requirement under Article III, focusing on whether the litigant is entitled to have the court decide the merits of the dispute.
The court granted Liberty Mutual’s motion to dismiss, though some claims were dismissed without prejudice, suggesting potential for refiling if properly pleaded. The analysis centered on whether Serauskas, as someone who paid premiums and ultimately owned the property, could enforce the policy issued in her mother’s name and whether Liberty Mutual’s conduct created a reasonable expectation of coverage despite the named insured’s death.
Liberty Mutual argued that the breach of contract claim must be dismissed because Serauskas lacks standing-she is not a party to the insurance contract and therefore cannot sue for breach.
A nonparty’s right to enforce a contract is governed by state law. There is no dispute that Estelle Bielecki is the “named insured” and the home on West 51st Street is the relevant Property described in the Policy. Because she is not a named insured, Liberty Mutual argued that Serauskas lacks standing to sue. It also notes that although the Policy contains an assignment provision, at no time prior to the fire in 2024 did Liberty Mutual provide written consent for assignment of the policy.
Serauskas’s arguments in response are non-starters.
The issue is not whether Serauskas was required under the Policy to notify Liberty Mutual of her mother’s death. It’s whether she qualified under the relevant provision of the Policy as a named insured. She did not.
The motion to dismiss was granted.
ZALMA OPINION
Ms. Serauskas was ignorant of the insurance issues raised by her mother’s death. First, a homeowners policy requires the named insured to reside in the premises for insurance to apply. In addition, only an insured, as defined by the policy, can recover as a result of a loss, like a fire. Serauskas was not an insured but resided in the premises. The named insured was dead and could not reside in the premises. To avoid the problem all that Serauskas’ needed to do was amend the policy to name her as an insured. She did not do so, was not an insured, and had no rights under the policy and the person with those rights was dead.
(c) 2026 Barry Zalma & ClaimSchool, Inc.
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Multiple Suits or Arbitration on Fraudulent Claims Irreparably Harm GEICO
Post number 5279
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GEICO Successfully Fights No Fault Auto Insurance Claims Fraud by Fraudsters Seeking Independent Trials or Arbitrations for Each Suspected Fraudulent Claim
In Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company, GEICO Casualty Company v. Bhargav Patel, MD, Patel Medical Care, P.C., John Doe Defendants 1 through 10, No. 24-191, United States Court of Appeals, Second Circuit (February 3, 2026) Government Employees Insurance Company (GEICO) and its subsidiaries, brought a civil action under the Racketeering Influenced and Corrupt Organization Act (“RICO”) against Dr. Bhargav Patel, Patel Medical Care, P.C., and other associated defendants.
GEICO alleged that the defendants orchestrated a scheme to exploit New York’s no-fault automobile insurance laws, ...
Multiple Suits or Arbitration on Fraudulent Claims Irreparably Harm GEICO
Post number 5279
See the video at https://lnkd.in/gAfNUN82 and at https://lnkd.in/gFxYpCmR, and at https://zalma.com/blog plus more than 5250 posts.
GEICO Successfully Fights No Fault Auto Insurance Claims Fraud by Fraudsters Seeking Independent Trials or Arbitrations for Each Suspected Fraudulent Claim
In Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company, GEICO Casualty Company v. Bhargav Patel, MD, Patel Medical Care, P.C., John Doe Defendants 1 through 10, No. 24-191, United States Court of Appeals, Second Circuit (February 3, 2026) Government Employees Insurance Company (GEICO) and its subsidiaries, brought a civil action under the Racketeering Influenced and Corrupt Organization Act (“RICO”) against Dr. Bhargav Patel, Patel Medical Care, P.C., and other associated defendants.
GEICO alleged that the defendants orchestrated a scheme to exploit New York’s no-fault automobile insurance laws, ...
An Assignment of Rights to Sue an Insurer Was a Poor Decision
Internet Failure Causes Loss to On Line Auction
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In Auto-Owners Insurance Company v. Halo Foundation: Helping Art Liberate Orphans, No. 25-1275, United States Court of Appeals, Eighth Circuit (January 27, 2026) the Helping Art Liberate Orphans Foundation challenges Auto-Owners Mutual Insurance Company’s denial of liability under its insurance policy. HALO argued that a broken YouTube link for its virtual auction caused losses covered by the policy. The district court disagreed, granting summary judgment to AutoOwners.
FACTUAL BACKGROUND
HALO, a non-profit organization, hosts an annual art auction. In 2022, it was virtual. To livestream it, HALO contracted with Paradise Productions KC, LLC and Qtego Fundraising Services. Paradise would handle the visual feed, Qtego the bidding software. Paradise created a YouTube link for ...
You Get What You Pay For – Less Coverage Means Lower Premium
Post number 5275
Posted on January 30, 2026 by Barry Zalma
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When Experts for Both Sides Agree That Two Causes Concur to Cause a Wall to Collapse Exclusion Applies
In Lido Hospitality, Inc. v. AIX Specialty Insurance Company, No. 1-24-1465, 2026 IL App (1st) 241465-U, Court of Appeals of Illinois (January 27, 2026) resolved the effect of an anti-concurrent cause exclusion to a loss with more than one cause.
Facts and Background
Lido Hospitality, Inc. operates the Lido Motel in Franklin Park, Illinois. In November 2020, a windstorm caused one of the motel’s brick veneer walls to collapse. At the time, Lido was insured under a policy issued by AIX Specialty Insurance Company which provided coverage for windstorm damage. However, the policy contained an exclusion for any loss or damage directly or indirectly resulting from ...
Declaratory Relief Available to an Insurer from USDC
Post number 5274
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Insurer Seeks Limitation of Liability of Child Killed by Foster Dogs
In the Cincinnati Specialty Underwriters Insurance Company, an Ohio corporation v. Dennis Murphy, as Personal Representative of the Wrongful Death Estate of Avery Colin Jackson-Dunphy, Deceased; Patrick Admiral Dunphy, an Individual; Danika Thompson, an Individual; and Animal Services Center Of The Messila Valley, a New Mexico limited Liability Company, No. CIV 24-1039 JB/JFR, United States District Court, D. New Mexico (January 23, 2026) resolved the issues raised about the court's jurisdiction.
Cincinnati Specialty Underwriters Insurance Company ...
Posted on January 26, 2026 by Barry Zalma
Insurance Fraud Should Not be a Retirement Plan
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Health Insurance Providers Are Attempting Insurance Fraud to Fund Retirement
Every insurer is required by its shareholders, members, state statutes and state regulations to do everything possible to deter and defeat attempts at insurance fraud. Most insurers, therefore, have a staff of fraud investigators working under their Special Investigative Unit (SIU) and the SIU works to train the claims handlers to recognize the indicators or red flags of fraud.
Much to the surprise of...
