The Occupational Safety and Health Act was signed into law in 1970 by President Nixon, and the Occupational Safety and Health Administration (OSHA) was simultaneously created to implement, administer, and enforce its requirements. OSHA’s mission is to “assure safe and healthy working conditions for working men and women by setting and enforcing standards and by
Tips for TN Policyholders Impacted by the March 3, 2020 Storm
The storm has passed and a new wave of obstacles and hurdles are sure to follow in its wake. Out-of-state adjusters have already flooded the area, and not all of them know and understand policyholders’ rights in the State of Tennessee. Here’s a few tips on a few areas that we at McWherter Scott &…
TN Supreme Court Rules Labor Cannot be Depreciated
For the past few years, I’ve been involved in several labor depreciation cases around the Southeast, including one right here in Tennessee against Auto-Owners. The threshold legal question in that case, Lammert et al. v. Auto-Owners Mutual Ins. Co., was whether an insurance company can depreciate the cost of labor when determining its actual…
Misrepresentation at Inception of Policy is Effective to Void Coverage Even After Renewals
I draw your attention to the June 25 Tennessee Court of Appeals decision in the case of Dutton v. Tennessee Farmers Mutual Insurance Company which addressed the question of whether misrepresentations made on an initial policy application which unquestionably increased the risk of loss would still operate to void that coverage when multiple renewals of coverage had taken place. Dutton v TN Farmers. The applicants unquestionably made misrepresentations on the policy application which were material, specifically dealing with drug use and convictions for drug related crimes. After the policy was issued (based upon that application), time passed, and multiple renewals occurred. In pertinent part, the changes made to the policy included the deletion of the individual who had the drug related problems. The insured argued the changes to the policy meant the misrepresentations no longer had any bearing on the risk that Tennessee Farmers was insuring.
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What Constitutes an “Ordinance or Law”?
In the case of Jefferson County Schools v. Tennessee Risk Management Trust, et al., No. E2017-01346-COA-R3-CV (decided March 15, 2018) (Jefferson County Schools v. TN Risk Management), the Tennessee Court of Appeals addressed the question of whether a Fire Marshal’s directive qualified as an “ordinance or law” for purposes of insurance coverage. Following a major rainstorm, a building at the Jefferson County High School collapsed. …
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Post-Loss Assignment of Claims are Valid in Tennessee
Not so fast Mr. Adjuster, my assignment of claim is valid even if the insurance policy says its not.
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MS Insurance Commissioner Issues Bulletin Regarding Labor Depreciation
This past Friday (Aug. 4, 2017), Mississippi’s Insurance Commissioner, Mike Chaney, issued a bulletin that alerts insurers that they should not be depreciating labor in Mississippi unless policy language clearly allows it, and even then, estimates must clearly delineate that labor was depreciated. I’ve quoted the bulletin below:
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Commissioner Confirms Insurers Must Pay for Matching
Parks recently posted about the new Rules adopted by the Tennessee Commissioner of Insurance that go into effect on October 9, 2017. The first of those rules makes clear the purpose “is to set forth minimum standards for the investigation and disposition of claims.” (Rule 0780-01-05-.01). While there are plenty of items worthy of discussion in the Commissioner’s soon-to-be effective Rules, the one that stood out to me relates to “matching.” Here’s what the Rule says:
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What Misrepresentations Increase the Risk of Loss?
The Court of Appeals recently provided further insight on what type of misrepresentations increase the risk of loss. In the case of Freeze v. Tennessee Farmers Mutual Insurance Company, filed March 28, 2017 (Freeze v. TFMIC), the Eastern Section Court of Appeals upheld the grant of summary judgment to Tennessee Farmers in a case which alleged misrepresentation under T.C.A. § 56-7-103, which provided as follows:…
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When is Overhead and Profit Due in Tennessee?
Several years ago I discussed a Sixth Circuit Court of Appeals case where the court determined that general contractor’s Overhead and Profit were recoverable if the insured would “reasonably be expected to hire a contractor to repair its property” See Parkway Assoc., LLC v. Harleysville Mut. Ins. Co., 129 Fed. Appx. 955 (6th Cir.…