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Intra-Policy UM/UIM Stacking


Unambiguous Anti-Stacking Language Until a year ago, the law on stacking uninsured and underinsured motorist coverages under a single policy insuring several vehicles was clear. In Goodville Mut. Cas. Co. v. Borror, 221 Va. 967, 275 S.E.2d 625 (1981) (“Borror”), the Virginia Supreme Court had held that it was “the rule in…

WHAT IS AN “ACCIDENT”? Part II


On September 23, 2011, we sent a Legal Alert concerning the Virginia Supreme Court‟s decision in AES Corp. v. Steadfast Ins. Co., 282 Va. 252, 715 S.E.2d 28 (2011). The court in that case considered whether there had been an “occurrence,” which was defined as an “accident,” for purposes of coverage under…

WHAT IS AN “ACCIDENT”? Part I


The standard commercial general liability insurance policy provides coverage for bodily injury or property damage caused by an “occurrence.” The term “occurrence” is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful condition.” In the recent case of AES Corp. v. Steadfast Ins. Co., ____ Va….

The question of whether multiple uninsured or underinsured motorist (“UM/UIM”) coverages can be combined when a single policy insures more than a single vehicle is of considerable importance to motor vehicle insurers. When intra-policy stacking is allowed, what was intended to be a policy with the UM/UIM limit stated in the declarations…

A statutory amendment that will take effect on July 1, 2010, will impose a new and potentially substantial burden on insurers that provide underinsured motorist (UIM) coverage especially in cases where liability is clear and the damages exceed the limit of the underlying liability coverage. Under the new subsection (l) to Va….

In the first case of its kind, Judge Doumar of the United States District Court for the Eastern District of Virginia rejected a claim that coverage was afforded under a homeowners policy for losses associated with Chinese drywall. TRAVCO v. Ward, ___ F. Supp. 2d ___, 2010 WL 2222255 (E.D. Va. 2010)….