“Insurers Must Navigate Legal Challenges When Doing Business Across State Lines”

Swift Currie partner Brandon Clapp authored an article for Insurance News Net providing guidance on how states have different laws that impact insurance claims from beginning to end. Significant consequences can come from each state having different laws and policy interpretations for insurance claims, which typically becomes an issue when the insured is doing business or has property in multiple states.

“Different states interpret the same policy language differently,” said Clapp. “Depending on which state law applies, an insurer may owe additional obligations to the insured if it defends the insured under a reservation of rights.”

He identified a number of state-specific responses to insurance claims and policies from North Carolina to Texas and even Colorado. Clapp explained that the majority of states follow a type of significant relationship test in determining which state’s laws and interpretations should apply.

“As described previously, the applicable state law may have a substantial impact on an insurer’s obligations to its insured when a claim is presented,” he said “Thus, it is important for insurers to get the information needed to assess the applicable law as soon as possible.”

To view the full article, you may click here.