| USA. Best Week: Suit may be decided, but wind-versus-flood debate continues |
|
|
|
| Monday, 21 August 2006 | |
|
Hurricane news: A federal judge in Mississippi may have ruled in favor of insurers in a recent court battle, but experts say the wind-versus-flood debate is far from over. For one, the decision is likely to be appealed. And its impact as precedent in future cases is uncertain as each case is being considered fact-specific, according to an article in the August 21 BestWeek. But insurance attorney Vince Vitkowsky, a partner with the national law firm of Edwards Angell Palmer & Dodge, said Judge L.T. Senter's ruling in the Leonard vs. Nationwide case was a "win for homeowners insurers" and a "victory for the legal system." Senter ruled that Nationwide Mutual Insurance Co. had met the burden of proving the majority of damage to an insured's home during Hurricane Katrina was caused by flood, an excluded peril. In a statement, Nationwide praised the decision as upholding the long-standing flood exclusion, which they say excludes storm surge caused by hurricanes. While the ruling may not be literal precedent because of the fact-specific nature of future cases, Vitkowsky said it is consistent with previous rulings by Senter and reveals the judge's "way of thinking." Also featured is Best's Insurance Composite Index, which finished the week of August 17, 2006, at 1,119.24, up 5.81% from a year ago. The composite index reflects the performance of 132 insurance stocks. The week's top performers were ACMAT Corp.; James River Group; KMG America Corp.; Sun Life Financial; and National Interstate Corp. The week's bottom performers were Direct General Corp.; Safety Insurance Group; Penn Treaty American; Scottish Re Group and Citizens Financial Corp. |
|
| Last Updated ( Monday, 21 August 2006 ) |
| < Prev | Next > |
|---|