The Insurance Policy Enforcement Journal Is the Industry’S Premiere Source for Information and Analysis of the Enforcement of Insurance Policy Provisions
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Volume 7 | issue 1 EThe Insurancenf Policyo Enforcementrce Journal IN THIS ISSUE Gene COVER STORY Celebrating the incredible journey Anderson of Gene Anderson, from humble THE DEAN OF beginnings on a farm to slaying POLICYHOLDERS’ corporate giants. (And spinning AttORNEYS some great stories along the way.) LOOKS BACK ADDICTED TO AIG? The impacts of the troubles for AIG are profound for business and policyholders. Special report begins on Page 9. A MERGER OF COASTS AND CULTURE Meet the key people at Anderson Kill Wood & Bender, LLP. Enforce: The Insurance Policy Enforcement Journal is the industry’s premiere source for information and analysis of the enforcement of insurance policy provisions. Settle for Everything.® Enforce Contents 9 Special Report: The AIG Addiction The impact of the crippled giant on the insurance marketplace. What happens to policyholders if AIG enters bankruptcy? Page 10 A respected broker describes how brokers can help during a time of turmoil in the insurance industry. Page 15 Would Americans be better served if the federal government regulated the insurance industry? Page 17 22 When East Meets West The merger of Anderson Kill & Olick, P.C. and Wood & Bender, LLP is about more than two firms in the same practice area. They share a culture of community service. Meet the key attorneys at Anderson Kill Wood & Bender, LLP. 25 Keeping an Eye on the Ball By John G. Nevius, P.E., Edward J. Stein, and David E. Wood Hot button issues to watch: Environmental Liability; General vs. Professional Services Liability; Directors’ and Officers’ Liability. 30 Attorney Conflicts of Interest By William G. Passannante and David P. Bender, Jr. It is critical for law firms to steer clear of the conflicts inherent in representing both policyholders and insurance companies. 2 Enforce: The Insurance Policy Enforcement Journal Volume 7 | issue 1 Shorter Takes From the Publishers Page 4 A milestone edition for a milestone event. Risk Radar Back Cover Hot topics to watch in the coming months. Enforce: The Insurance Policy There’s more online Enforcement Journal is published semi-annually by Anderson Kill Wood www.andersonkill.com & Bender LLP, a California-based law firm with a national practice in insurance policy enforcement. The firms of Wood & Bender LLP and Anderson Kill & Olick, P.C. had each built a national Publishers reputation in insurance policy enforcement cases. David E. Wood Their merger in January creates the strongest firm David P. Bender, Jr. in the nation in this area. Enforce will continue to Editor in chief be published on a regular basis. In the meantime, Tim Gallagher the firm’s website will continue to keep you up to Contributors date on the latest developments in the field. David E. Wood, David P. Bender, Jr., David A. Shaneyfelt, John G. Nevius, P.E., Visit the firm’s website to find past articles on Edward J. Stein, William G. Passannante important topics. Design Our website is a great place to learn about: Publishing Resources, Inc. Editorial inquiries and story ideas are ... Details and history of the firm and our attorneys; welcomed. Contact Tim Gallagher at ... Our successes in previous cases; [email protected]. ... Expert opinions in matters of insurance policy Subscriptions are complimentary for clients, enforcement; friends of the firm and those interested in the development of insurance policy enforcement law. ... Contact information for reaching our lawyers. Copyright 2009 by Anderson Kill Wood & Bender LLP. All rights reserved. This magazine informs clients, friends, and fellow professionals of developments in insurance coverage law. The articles appearing in Enforce do not constitute legal advice or opinion. Such advice and opinion are provided by the firm only upon engagement with respect to specific factual situations. The firm has offices in New York, NY; Newark, NJ; Philadelphia, PA; Greenwich, CT; Ventura, CA; and Washington, D.C. VOLUME 7 | ISSUE 1 3 From The Publishers Dear Readers: been interviewed by regional and national insurance and mass media publications like The National Law The first of this year marks an exciting milestone in Journal, Forbes, USA Today and the Los Angeles Daily the life of Wood & Bender, publisher of Enforce. On Journal, and speaks regularly on insurance policy January 1, 2009, we announced our merger with New enforcement topics to professional and lay audiences. York-based Anderson Kill & Olick, P.C., to create the The firm founded the award-winning magazine preeminent insurance policy enforcement firm in the Enforce, considered the go-to journal of business country. We could not be more pleased and excited. insurance policy enforcement. This issue of Enforce celebrates this marriage and the expanded scope of service the combined firms now The merger, which became effective January 1, 2009, offer nationwide. It is dedicated to Anderson Kill’s adds Wood & Bender’s 14 attorneys to Anderson Kill’s founding partner, the legendary Eugene Anderson. 79 attorneys. Through this merger, Anderson Kill adds a California presence to its complement of offices Gene Anderson literally wrote the book on corporate in New York, NY; Newark, NJ; Philadelphia, PA; insurance recovery. The first nationally-recognized Greenwich, CT and Washington, D.C. expert in the field, Gene launched the law firm that bears his name in 1969. Today Anderson Kill is Anderson Kill has long been the most substantial widely respected for an encyclopedic command of national insurance firm in the country, with no ties to insurance and its dedication solely to the interests of insurance companies, no conflicts of interest, and no the policyholder adverse to insurers. The firm recently compromises in their devotion to policyholder interests received a No. 1 ranking for Insurance: Dispute alone. Wood & Bender shares this commonality of Resolution in New York; Litigation: Insurance in New purpose. Its unique tag line, “Settle For Everything®,” Jersey and Insurance nationwide by Chambers USA will now be adopted by the combined firms as the 2008: America’s Leading Lawyers for Business. ultimate expression of the combined firms’ policy enforcement practice philosophy: to demand and recover from insurance companies nothing less than the full extent of the obligations they owe. In these times of tightened corporate belts, American business simply cannot afford to leave money on the table. Anyone familiar with insurance knows Anderson Kill. Enforce and Anderson Kill Wood & Bender salute Gene Anderson and his partners who carry on the tradition of excellence he pioneered. There simply is no one more respected in the field. Together we form the nation’s largest practice devoted exclusively to corporate insurance recovery. Our thanks to the clients and DAVID E. WOOD AND DAVID P. BENDER, JR. friends of both firms for their support of this and the The fusion of Wood & Bender’s policy enforcement many other publications generated by Anderson Kill practice with Anderson Kill’s has been seamless. and Wood & Bender lawyers in the past. Wood & Bender has represented corporate policyholders in insurance recovery matters since Please enjoy this tribute to Gene Anderson. 1995, and has a strong presence in the West. The firm has extensive experience representing public and Sincerely, private companies and municipalities in complex David E. Wood David P. Bender, Jr. insurance coverage litigation. It has written for and [email protected] [email protected] As a national leader in insurance policy enforcement, Anderson Kill Wood & Bender is a dedicated advocate for the cor- porate policyholder’s right to full value from its insurance programs. Enforce is the flagship of our suite of print and online publications, our clearinghouse for new ideas on gaining the broadest insurance coverage allowable. 4 Enforce: The Insurance Policy Enforcement Journal The Dean of Policyholders’ Attorneys Looks Back any attorneys dream of a breakthrough court win that will open doors for Mthemselves and their law firms. Gene Anderson’s breakthrough victory against three insurance companies in Keene vs. Insurance Co. of North America reshaped the landscape not only for his firm but for corporate policyholders everywhere. At a time when corporations across the country were facing huge liabilities for pollution and asbestos claims that alleged damage over the course of many decades, Keene helped companies tap insurance policies that extended over the full period in which their liabilities developed. As Mr. Anderson moved from that signature victory to other major insurance coverage battles, a new practice area, now known as insurance recovery or insurance enforcement, took shape. Over the ensuing 27 years, Mr. Anderson has mentored a generation of zealous advocates for policyholder’s rights. GENE ANDERSON The year was 1981, and client Keene Corporation faced millions of dollars in liabilities stemming from personal injury claims from plaintiffs alleging Faced with these “three bears,” Mr. Anderson came that they had been exposed to asbestos over the up with a reverse-Goldilocks solution. All three were course of many years. The company tendered the “just right” — that is, right about the others. If a suit to three insurance companies that had insured carrier insured the company at any time during the it at different times — each of which pointed the exposure, injury or claim, it was liable for the loss. finger at the others. The Court of Appeals accepted that argument, One carrier claimed that the insurer on the risk which established the doctrine of the “triple when the plaintiffs were first exposed to the trigger” for insurance coverage: a claim can be asbestos was on the hook. The second carrier triggered at the time damage occurs, at the time asserted that the claim’s responsibility was with it manifests itself, or at the time when a plaintiff the insurance carrier of record when the plaintiff seeks redress. realized he was ill. And the third alleged that the carrier on the risk when the first plaintiff The victory was also especially sweet for Mr.