Written by David O’Neill, JD, Director of Investigations, PolicyFind
The Indiana Court of Appeals opinion in General Housewares Corp. v. National Sur. Corp. 741 N.E.2d 408, 413 (Ind. Ct. App. 2000) established the adoption of the common law known loss doctrine under Indiana insurance law. In that opinion, the Court stated that:
“Simply put, “the known loss doctrine” states that one may not obtain insurance for a loss that has already taken place.”
In General Housewares Corp., the Court of Appeals declared that the doctrine applied where an insured had “actual knowledge that a loss has occurred, is occurring, or is substantially certain to occur on or before the effective date of the policy.” Since that decision, the Court has taken cases on appeal that require it to further define what the term “loss” actually means in the context of what needs to be known to preclude insurance coverage under this doctrine. Its rulings in two of these cases appear at odds and call for some clarification regarding the application of the doctrine to environmental claims in Indiana. Continue reading “Two Recent Indiana Court of Appeals “Known Loss” Decisions Focus on Policyholder Awareness of Property Damage Liability”