Connecticut High Court Rules Against Insurer
A claims adjuster acting on behalf of an insurer paid out the insurance coverage on a property damage claim having missed a letter in its file revealing there was a mortgage on the property. Later the bank sought its interest alleging the insurer knew about the mortgage and should have paid the insurance proceeds to the bank. The insurer settled the claim with the bank for $1 million. Four years after that suit was filed, the insurer sued the adjuster. Considering the applicability of the continuing course of conduct tolling doctrine to a relationship between an insurance company and its independent claims adjuster in the period after an insured's claim has been fully paid, the Connecticut Supreme Court held the continuing course of conduct doctrine could not save the untimely claims of the insurer.