Category Archives: Duty to Indemnify

Auto Coverage: “Absolute” & “Frozen” Liability under the Minnesota No-Fault Act


By Greg Johnson. A parent completes a personal auto application for automobile insurance and does not disclose that there are any other licensed drivers in the household that will operate the insured vehicle. Later, after the policy is issued, a … Continue reading

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Protecting the Dealership’s “Front-End” and “Back-End”: What Does that Mean?


By Greg Johnson. Everyone in the retail automobile industry is familiar with the terms “front-end” and “back-end.” They represent two sources of potential revenue (and, hopefully, profit) for auto dealerships: The “front-end” refers to revenue realized on the sale of … Continue reading

Posted in ADCF Policy, Auto Dealer, Coverage, Duty to Defend, Duty to Indemnify, Truth in Lending Coverage | Tagged , , , , , , , | Leave a comment

The Graves Amendment: Is an Auto Dealer Vicariously Liable for a Customer’s Negligent Operation of a Loaner Vehicle?


By Greg Johnson. Does the Graves Amendment apply to auto dealerships who provide loaner vehicles to their customers? In a previous post, I provided an overview of the Transportation Equity Act of 2005 (49 USC § 30106) (a/k/a “Graves Amendment”), … Continue reading

Posted in ADCF Policy, Auto Dealer, BAP, Coverage, Duty to Indemnify, PAP, Rentals | Tagged , , | Leave a comment

Should an Auto Dealer Insurer Defend an Auto Dealer Against “Intentional” Violations of Credit Sale and Leasing Disclosure Laws?


Introduction By Greg Johnson. Having worked in the consumer finance and insurance coverage arenas for over twenty years, I have frequently been asked whether an auto dealer’s “intentional” or “wilful” violation of a statutory disclosure law, such as the federal … Continue reading

Posted in ADCF Policy, Auto Dealer, Bad Faith, Consumer Leasing Act, Directors & Officer's Liability, Duty to Defend, Duty to Indemnify, Errors & Omissions, Expected Injury Exclusion, Fraud Exclusions, Intentional Injury Exclusion, Professional Liability, Truth in Lending Coverage | Leave a comment

Insured’s Investigation and Overhead Expenses Not Covered by Policy


Every once in awhile a policyholder asks whether the costs it incurred in addressing a third-party property damage claim, such as inspection costs, personnel costs, overhead costs and attorneys’ fees are covered by its Commercial General Liability (“CGL”) policy.  Unless the costs qualify … Continue reading

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Liability Insurance: The Risks of Denying a Duty to Defend


By Greg Johnson. Deciding whether to defend the insured in a third-party lawsuit (which generally involves a comparison between the allegations of the complaint and the policy), can be simple, complex or somewhere in between.  Regardless, insurers should always factor in the potential risks … Continue reading

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Minnesota CGL: Clean Up Costs Arising From Construction Operations Barred


In Engineering & Construction Innovations Inc. v. Western National Mutual Insurance Co., an unpublished decision of the Minnesota Court of Appeals released on August 18, 2010, the court held that clean up costs arising out of the insured’s operations at the … Continue reading

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