Business Law Case Study: Simulation
Requesting approval for payment; on 03/27/17 we received a payment request totaling $1,491,390 ($1,225,000 Loss & $266,390) involving our Public Auto XOL contract effective 01/01/13. Our current o/s reserve is $1,451,950, an increase of $35,558 in the loss adjustment expense is required, which will increase our total incurred to $1,491,390. The required pay time form has been tasked to K. Haniff.
IAT issued a commercial auto policy effective 10/01/13 – 10/01/14 with limits of $5,000,000, the date of loss is 07/11/14 falling within the ceded policy term. Our contract period is 01/01/13 – 12/31/13 accepting losses occurring on new & renewed policies attaching during our contract period. Our cover is 35% of $3,500,000 xs $1,500,000 (Limit is $1,225,000) LAE is pro rated.
This loss involves a wrongful death action of a 16 year old male passenger on the insured’s open air double decker bus in Los Angeles CA. The claimant was attending his friend’s party, where the friends’ parents (Schlossberg), …show more content…
In addition to the insured, being named as direct defendant, several other corporate entities (entities) of the insured have been named as defendants in this action; Starline USA, Starline Tours of Hollywood, ScreamlIne & Movieland Charter. Each of these entities share the same principal owners as the insured. Each of these defendants has their own commercial auto or general liability policy issued by various insurers with limits ranging from $1,000,000, $2,000,000 and $5,000,000. The plaintiff attorney successfully raised the “Alter Ego” argument, where the court ruled in favor of the plaintiff’s, exposing each of the four entities policies to this wrongful death action. Furthermore, California Insurance Code states, an occurrence involving a motor vehicle, where multiple policies are available, the motor vehicle’s auto policy is primary and all other liability policies shall be
IAT issued a commercial auto policy effective 10/01/13 – 10/01/14 with limits of $5,000,000, the date of loss is 07/11/14 falling within the ceded policy term. Our contract period is 01/01/13 – 12/31/13 accepting losses occurring on new & renewed policies attaching during our contract period. Our cover is 35% of $3,500,000 xs $1,500,000 (Limit is $1,225,000) LAE is pro rated.
This loss involves a wrongful death action of a 16 year old male passenger on the insured’s open air double decker bus in Los Angeles CA. The claimant was attending his friend’s party, where the friends’ parents (Schlossberg), …show more content…
In addition to the insured, being named as direct defendant, several other corporate entities (entities) of the insured have been named as defendants in this action; Starline USA, Starline Tours of Hollywood, ScreamlIne & Movieland Charter. Each of these entities share the same principal owners as the insured. Each of these defendants has their own commercial auto or general liability policy issued by various insurers with limits ranging from $1,000,000, $2,000,000 and $5,000,000. The plaintiff attorney successfully raised the “Alter Ego” argument, where the court ruled in favor of the plaintiff’s, exposing each of the four entities policies to this wrongful death action. Furthermore, California Insurance Code states, an occurrence involving a motor vehicle, where multiple policies are available, the motor vehicle’s auto policy is primary and all other liability policies shall be