mram construction defect webinar 12012009 - … defects webinar presenter senior vice president...
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Construction Defect History TrendsConstruction Defect History, Trends, Issues and Underwriting Considerations December 1, 2009,
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Construction Defects Webinar
Presenter
Senior Vice President Casualty Treaty Underwriting M i h R i A i I
Gerry Finley, CPCU
Munich Reinsurance America, Inc.
Gerry’s background includes over 30 years of underwriting experience comprised of 9 years at the primary company level (including that of a Commercial lines Underwriting Manager) and over 21 years in casualtyCommercial lines Underwriting Manager) and over 21 years in casualty treaty reinsurance underwriting. He has been with Munich Re America for 15 years.
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Construction Defect Overview
I. What It Is
II. State Considerations
III. Class Considerations
IV. Underwriting Issues(C d E )(Coverage and Exposure)
V. Special Exposures (Green Building, Imported Drywall & Recession)
VI. Key Takeaways
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Comments are based on our own analysis of available information. Independent analysis is encouraged.
Construction Defect - Introduction
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A “Perfect Storm”Construction Defect - Introduction
Damage often takes years to become knownLatency
g yStatute of Repose generally 6-10 years
Severity Multi-family units – Condos, townhomes, tract developments Horizontal Policy Limit Stacking – latency, continuous triggerExpenses Complicated cases (50% of indemnity in some cases)Expenses – Complicated cases (50% of indemnity in some cases)
Legislation and Case Law
Constantly changingCan be positive or negativePolicy trigger uncertainty
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OriginsConstruction Defect - Introduction
California Rapid population/housing growth (especially 1970-90)CaliforniaLack of skilled contractors
1995 CA Supreme Court decision
Montrose
pContinuous trigger = continuing damage?“Known Loss” defense application limitedAll carriers exposed are at risk for entire loss
Buyer Expectations
Home buyers expect perfection Increasing trend
Economic Loss Doctrine & “Your
Economic loss = Breech of contract, not a tort?Business risk exclusion = “Damage to contractors own work”?
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Doctrine & Your Work” Exclusion
Business risk exclusion Damage to contractors own work ?No coverage, right? – What’s the issue?
“Your Work Exclusion”Construction Defect - Introduction
l. Damage To Your WorkISO E d t
"Property damage" to "your work" arising out of it or any part of it and included in the "products-completed operations hazard ”
ISO Endorsements:- 2294 1001 – Broad Form- 2295 1001 – Designated Site or
Operationoperations hazard.
Eliminate the subcontractor exceptionEliminate the subcontractor exception
Sub-contractor Exception :
May be difficult to get on a general contractor’s policy
“This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a
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p y ysubcontractor.”
DefinedConstruction Defect - Introduction
Completed Operations vs. The issue is completed operations and, to a lesser extent,
d t t i tivs. Ongoing Operations products - not ongoing operations.
Residential Both may be impactedResidential vs.
Commercial
Both may be impacted.Residential has the greater loss potential – class actions, per project aggregates.
New Constructionvs.
Repairs
Multi-ownership new construction – KEY“Exposure equivalent” - major repairs, renovations, remodeling if multi-ownership projects.
Type of activities Design deficienciesM t i l d fi i i
Construction deficienciesG h i l/ b f
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Type of activities Material deficiencies Geophysical/subsurface
State Considerations
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Partition of StatesState Considerations
Tier 1 States Tier 2 States
Well-established history of loss activity and characteristics typical of exposure
A i N d
States with emerging / potential loss issues or characteristics of increased exposure
Al k * M l dArizona
California
Colorado
Nevada
Oregon
Texas*
Alaska*
Hawaii
Louisiana**
Maryland
New Jersey
North Carolina
Florida Washington
* 2007 TX Supreme Court decision (Lamar Mid C ti t) d t i d d fi iti l
Mississippi** South Carolina
* Alaska contractors may do work in other t t t tv. Mid-Continent) determined definitively
that a construction defect claim was the type contemplated under a CGL policy; i.e., qualifies as both an “occurrence” and “ t d ”
west coast states.
** LA and MS are Tier 2 due to Katrina, Rita, Wilma related construction activity.
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“property damage”.
Key State Factors State Considerations
Legal Climate• Proactive plaintiff bar?
P l i tiff j di i ( l t d i t d)?• Pro-plaintiff judiciary (elected or appointed)?• Adverse or favorable case law?• Legislation – (e.g., right to repair, homeowners warranty, statute of
repose, anti-indemnity statutes) – adverse or favorable?
Demographics (incl. Type of Homes, Climate, Geography/Topography)Geography/Topography)• Climate/Terrain – water intrusion/moisture; earth movement or soil
issues; natural catastrophes?• Nature of Construction/Ownership – extent of multiple ownership
projects – condos; townhomes mega tract home developments;projects condos; townhomes, mega tract home developments; construction quality (material, labor)?
• Population and housing trends?
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Population Growth Estimates 2000-2010 State Considerations
Numerical Population Change10 Largest States
Percentage Population Change10 Largest States
California 4,195,486 12.4%
Texas 3,797,068 18.2%
Florida 3 269 313 20 5%
Nevada 692,274 34.6%
Arizona 1,506,749 29.4%
Florida 3 269 313 20 5%Florida 3,269,313 20.5%
Arizona 1,506,749 29.4%
Georgia 1,402,627 17.1%
Florida 3,269,313 20.5%
Texas 3,797,068 18.2%
Idaho 223,338 17.3%
No. Carolina 1,296,510 16.1%
Virginia 931,730 13.2%
Nevada 692 274 34 6%
Georgia 1,402,627 17.1%
Utah 361,844 16.2%
No Carolina 1 296 510 16 1%Nevada 692,274 34.6%
Washington 647,892 11.0%
Maryland 608,484 11.5%
No. Carolina 1,296,510 16.1%
Virginia 931,730 13.2%
Delaware 100, 742 12.9%
12Source: U.S. Census Bureau data
State Evaluation Some Specific Key Drivers
State Considerations
Demographics - Economic conditions; growth and make-up of population; growth and make-up of housing; terrain; catastrophe potential (EQ, hurricane)
Statue of Repose – How long and when does it start?
Transfer of Liability - Extent and nature allowed (sole v. partial)?
Coverage Trigger – Is there a compelling precedent or tendency for courts to apply a particular trigger to CD cases and what are the implications (horizontal vs. vertical stacking)?stacking)?
Legal – Are judges appointed or elected; Is there a right to repair or home owner
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warranty program and how effective are they? Case or legislative law?
State Considerations
State Evaluation – Kansas Some Specific Key Drivers
Kansas
Demographics Stable/weak population; falling housing demand; hit hard byDemographics Stable/weak population; falling housing demand; hit hard by recession; tornado activity.
Statute of Repose 5 years for actions based on contract; 3 years if based on breach of contract.
Transfer of Liability
Not allowed to pass on sole or partial negligence; broad anti-indemnity statue applicable to both contracts and additional insured coverage.
Coverage Trigger Injury in Fact* and Continuous* rulings, but not specific to construction defect.
Legal Balanced judiciary - “Your Work” exclusion applied in a major id ti l (O i Giff d 1985) Mi d lt thresidential case (Owings v. Gifford, 1985); Mixed results on other
commercial construction cases; weak “right to cure” statute.
* Injury-in-Fact: Date the actual damage takes place May be multiple dates
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Injury-in-Fact: Date the actual damage takes place. May be multiple dates* Continuous: Period from initial exposure to manifestation/discovery
State Evaluation – Nevada Some Specific Key Drivers
State Considerations
Nevada
Demographics Strong population growth/building rate, weak transient/labor force.Demographics Strong population growth/building rate, weak transient/labor force. Hit heavily by the recession with high foreclosure rate; large build up of supply.
Statute of Repose 10 years for known defects / 8 years for latent defects from substantial completionsubstantial completion
Transfer of Liability
Contractual and AI – For both, can pass on sole or partial negligence unless excluded.
Coverage Trigger Generally follows CA (Continuous*)
Legal Elected judiciary & pro-plaintiff judicial system (e.g., Kitec; Westpark; Del Webb cases)
* Continuous : Period from Initial exposure to manifestation/discovery
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Class Considerations
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Partition of ClassesClass Considerations
Tier A = Known Exposure Classes – Direct / Active loss history
DevelopersDevelopers
GC – If > 10 units per year; or multi-family housing (townhomes; condos; tract homes); or apts. without mold, EIFS and Montrose exclusions
T d t t R f idi i d f f d ti l d di / itTrade contractors – Roofers, siding, windows, framers, foundation, land grading/site preparation, etc.
Products – Manufacturers, building material dealers & contractors (expense) –past (Entran Pipe, EIFS); current (Imported Drywall); future (Green Products)past (Entran Pipe, EIFS); current (Imported Drywall); future (Green Products)
Tier B = Potential / Emerging Exposure Classes – by nature of work
Other Classes – Water or structural integrity of building g y g
Repair/Remodeling – Structural Multi-ownership projects
Mechanical – Heating/AC, Plumbing
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Size of the Contractor is Less Important Type of Ownership and Nature of the Work are Key
Landscapers & Carpentry –Special Considerations
Class Considerations
Not all operations risks in a given class are equal – Be inquisitive(Find out: What have they done in the past.......... What they can do in the future)What do they tell the public: Check their website; phone book; brochures etcWhat do they tell the public: Check their website; phone book; brochures, etc.
Landscaping / LandgradingEquipment list Historical list of jobsHistorical list of jobs Landscaping - typically post-construction (e.g., lawn/shrub/tree workLand grading - typically pre-constructiong g yp y p(e.g., site prep, foundation, street/road)
Carpentry Structural (e.g., framing/roofing) vs. finish(e.g., sheet rock, molding, cabinets)Exterior (e.g., doors/windows) vs. interior (e.g., stairs, flooring)Mi i / d li j i / d li
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Minor repair/remodeling vs. major repair/remodeling (“new construction like”)
Renovations – Special ConsiderationsClass Considerations
Not all “Renovations and “Remodels” are Made Equal
Some are minor:Some are minor:Bathrooms, kitchensPlumbing, electricalPainting wallpaper finished carpentryPainting, wallpaper, finished carpentry
Some are more like new constructions: Structural – building envelope; load bearing g p ; gwalls, roofs, etc. “Major” work – mechanical
Keys:Multiple ownership projects involving structural/building envelopeKnow what the contractor is doing – beware of “NOC” classes
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Underwriting Issues Coverage and Exposure
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CoverageUnderwriting Issues
Know exactly what is covered and how it is covered
Coverage issues are critical regardless of the state or class. Even states or classes that are not viewed as problems need attention to coverage issues.
Tier 1 states or Tier A classes need special attention to coverage issues – minimal margin p g gfor error.
Coverage is always prone to market cycle influence – Discipline is important
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Coverage – Available ExclusionsUnderwriting Issues
Depending on Objectives
Exclusions Usage
Mold (CG 2167 1204) - Common usage
Montrose – known loss (CG 0057 0999 / Current CGL) Common usage – p/o ISO form
Earth movement / subsidence – Land grading, paving, etc. (manuscript) Common usage
Products – all states (EIFS, Entran Pipe, CCA, FRT) – Mfg; GC; developers; building material dealers; trade contractors (manuscript or standard ISO exclusion) ------ Chinese Drywall???????
Common usage
Townhome condo multi tract dev’l apt (Manuscript or standard ISO Common usageTownhome, condo, multi tract dev l, apt .(Manuscript or standard ISO exclusions) - Can use CG2134
Common usage
Designated work/operations (CG 2134 0187) – multiple uses (Prior work, condo, specific products or work, etc.)
Less common usage
Prior work (Manuscript; CG 2134 0187) - more on this later Less common usage
Progressive/continuous loss (Manuscript) - more on this later Less common usage
Damage to work performed by subcontractors (CG 2294/2295 1001) Less common usage
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Wrap up exclusion (CG 2154 0196) Less common usage
Special Coverage Triggers/Exclusions Attempt to address “Horizontal Stacking”
Underwriting Issues
Occurrence(Standard Trigger)
Injury / damage must occur during the policy period. Continuing injuries / damage may trigger multiple policies (“horizontal stacking”) in certain circumstances according to some courts
Special TriggersClaims Made Claim first made during the policy period provided the loss occurred after
retroactive date Addresses “horizontal stacking” but not date of loss
in certain circumstances according to some courts.
retroactive date – Addresses horizontal stacking but not date of loss occurrence
Manifestation Policy is triggered when the damage “manifests” (becomes known or should be known) – Addresses “horizontal stacking” but is not compatible with other forms in the event the insured changes carriers
Progressive Injury Exclusion
Exclusion - restricts the occurrence to only damage that started during the policy period - excludes any damage that first took place prior to the inception of the policy period and “progresses” or “continues” into the policy p p y p p g p yperiod. Addresses “horizontal stacking” but is not compatible with other forms in the event the insured changes carriers.
Prior Work Exclusion
Exclusion – eliminates some or all work that was started (or conversely, completed) prior to the policy period The exclusion can apply to specific
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Exclusion completed) prior to the policy period. The exclusion can apply to specific prior projects or specific years of work .
Transfer of Liability Issues / Considerations
Underwriting Issues
N t f C Bl k t D i t d J b d f t l dNature of Coverage How is the liability
transferred
Blanket vs. Designated Job – degree of control and understanding exposuresContractual vs. Additional Insured
Ongoing operations s completed operations
Scope of Coverage What liability is transferred
Ongoing operations vs. completed operationsSole negligence Defense“Caused by” vs. “Arising out of”Damage to “Your Work”
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Transfer of Liability Comparison of Key Issues
Underwriting Issues
y
Additional Insured Contractual Comments
Sole Negligence
Non-Transferable 07/04 or later versions of
Coverage may be available to an indemnittee
Older A/I forms provide coverage to the A/I “arising out of” the named insured’s work. The Negligence 07/04 or later versions of
forms CG 2010; CG 2033; CG 2037 (or) any in AZ, FL, MT, NM, ND, OR & WA
Yes Transferable
depending on the state statute or case law and circumstances.
(See note below)
gnewer forms (07/04 and later) provide coverage on a “caused by” basis which is more restrictive.
Seven states have statutes prohibiting A/I endorsements from providing defense or Yes - Transferable
All ISO forms prior to 07/04
p gindemnity coverage to A/I’s for other than the NI’s own negligence or share.
Damage to “Your Work”
Non-Transferable 10/93 or later versions of f CG 2010 d CG
The indemnittee can not get greater coverage than that which is available to
“Your Work” (Exclusion L) applies to the GC Named Insured’s (GC NI) completed operations. Subcontractor exception provides coverage
(Completed Operations)
forms CG 2010 and CG 2033
Yes - Transferable CG 2010 11/85 edition andCG 2037
that which is available to the named Insured.
(See note below)
Subcontractor exception provides coverage under GC NI policy for the GC NI if the work has been subcontracted. If the GC NI is an Additional Insured (AI) under the Sub’s policy there may be additional coverage for the GC NI if the Sub also subs work out.
Primary Defense
Follows the coverage noted above depending on the form and edition used
Yes, but only if the loss is otherwise covered under the indemnitors’ policy and the policy explicitly requires defense coverage
Same comments as above
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requires defense coverage
Note: CG 2426 0704 amends the definition of an insured contract. It limits coverage to BI or PD “caused, in whole or in part, by you or by those acting on your behalf.” This approach tailors contractual coverage to match more closely the protection providedto the named insured’s indemnittee as an A / I under the updated (0704) A / I endorsements.
Additional Underwriting IssuesUnderwriting Issues
Aggregate Limits – Per Project Basis
Common approach adds to the risk of bad contractorsCommon approach – adds to the risk of bad contractors doing bad work over multiple projects
Selecting capable contractors is critical
Homeowner Warranty Coverage / Right to Repair
May not insulate GL policy
Statue of repose outlives meaningful coverage
Must understand fully…Not a silver bullet
W / OCIPWrap-ups / OCIPBecoming more common
Coverage excess of wrap-ups is a challenge
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Be careful of gaps and lack of control
The Ultimate Key: Risk SelectionUnderwriting Issues
Startups or new contractors warrant close scrutinyyMultiple names or name changes is a signal warranting further caution – reputation risk
Stable Track Record
Quality of homesAbility/willingness to make repairsSt i
Financials are Staying powerReputation
Fundamental
Equipment scheduleQuality of employees and subsForms – exclusions, triggers, A/I coverage or contractual agreements
Understand Coverage & E
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agreementsActual construction & project – inspect quality of large jobsClaim history/prior carrier information
Exposures
Underwriting Issues Overview
Issues Possible Approaches
Loss activity - horizontal vs vertical Claims made & reported or manifestation trigger; perLoss activity - horizontal vs. vertical stacking
Claims made & reported or manifestation trigger; per policy aggregate limits; prior work, progressive injury exclusions;
Runaway defense Defense in limit, caps on defense
Contractual shifting of liability/expense
Extent and nature of additional insured coverage; per job contractual with tightly drafted contracts
“Tsunami Effect” – rolling forward past exposures
Claims made & reported/retro inception; prior work exclusion; progressive injury exclusion
Completed operations “Your Risk selection (choose quality builders/contractors);Completed operations – Your Work” product warranty
Risk selection (choose quality builders/contractors); extent of subcontracted work
Moral risk Risk selection – track record for quality and reputation (Weak contractors build bad homes)
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( )
Special Exposures
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Emergence of Green Construction Special Exposures
New Products or Recycled
Materials
New Risks
****************New
Processes &New Laws & **************** New
Opportunities
Processes & Technologies
New Laws & Regulations
Buyer Expectations****************
Contractor
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QualificationsContractor
Qualifications
Emergence of Green Construction Basic Issues
Special Exposures
What is “Green Construction”?
Important to distinguish truly unique green exposures from those that also exist in traditional construction projects.
Contracts must be clear and precise regarding “green” expectations and remedies if expectations are not met
Higher Standard of Despite LEED – “Green Contractor” qualifications are still an openHigher Standard of Care / Builder Qualifications
Despite LEED Green Contractor qualifications are still an open issue and standards are not strong.LEED is focused on commercial more than residential
Higher Buyer Energy savings, tax credits, health benefits, etc. – expectation will be Expectations higher……..functional equivalent to “financial guarantee”???
(Shaw Development v. Southern Builders, MD, 2007)New or Recycled Products /
More a products issue than completed operations issue except if wrong product used or right product misused …or indirect exposure
Technologiesg p g p p
through transfer of liability
Coverage Issues Still evolving…..Few court cases to date
M t d d f ill b j t
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More to come and defense will be a major component
Special Exposures
Emergence of Green Construction Basic Issues
Evaluating Contractors “Green” Qualifications
What is the extent and nature of green activities they are involved in or plan to be involved in during the term of coverage?
What is their experience with “green” construction? Have they had training and are theyWhat is their experience with green construction? Have they had training and are they certified? If so, is certification meaningful? (The internet is a good source for information about the “certifying body” )
What types of new products, technologies, systems, or materials have they used in the past? Do they use now or do they plan to use during the term of coverage? What is their experience with them?
How does the contractor manage the buyers expectations about the benefits of green construction? (How do they avoid “overpromising”?)
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Review all construction contracts – What’s promised and can the contractor deliver?
Chinese Drywall Challenges The Issue
Special Exposures
• Importation of low cost Chinese Drywall - 2002-2008 construction boom and Katrina - Depleted domestic drywall supplies
Origin
p y pp• May have been recycled and used by U.S. manufacturers to make
domestic drywall• Is it just imported drywall?
• High Humidity seems to produce the emission of sulfuric gases -Corrodes components of electrical , HVAC systems, other fixtures and appliances in the home
Problem • Illness and unpleasant (“rotten egg”) odor also reported
• 32 Sates (and growing) – FL, LA, TX, MS, OH, NC and VA dominate
Estimated Magnitude
• 550 - 600 million pounds of Chinese Drywall (6.2million sheets) • 100,000 homes impacted (2,100 claims so far) - estimated aggregate
cost of $25 Billion including diminution of value, indemnity, $5-10 Billion legal fees
• Ultimate scope of the problem still to be determined
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• Ultimate scope of the problem still to be determined
Chinese Drywall Challenges The Actors
Special Exposures
Congress – 7 legislative initiatives in total including: Drywall Safety Act of 2009- Drywall Safety Act of 2009
- Mortgage Reform and Ant-Predatory Lending Act - Foreign Manufacturers Legal Accountability Act of 2009
PlaintiffsHomeowners /Tenants
Condo AssociationsBuilders/Developers
DefendantsHomeowner Insurers (Coverage unlikely)
Mfg / Importers / Exporters$$$Builders/DevelopersContractors/Subcontractors
Material Suppliers
Mfg. / Importers / ExportersBuilders/Developers
Contractors/SubcontractorsMaterial Suppliers
$$$
pp
Courts:- Multi District Litigation (MDL) – Coordinate State Actions
Court Ordered testing of Homes
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- Court Ordered testing of Homes
Chinese Drywall Challenges Coverage Questions (1 of 2)
Special Exposures
• Negligence – Design, Mfg. Testing, Distribution, Information• Strict Liability – Product Liability throughout the Chain of
Commerce > Manufacture through Installation Breach of Warranty Express or Implied
Causes of Action• Breach of Warranty – Express or Implied• Misrepresentation – Negligent or Fraudulent
• Exposure – Date the drywall installation & proximity to it • Injury In fact - Date the actual damage or injury takes place• Manifestation – The date when the damage/injury becomes
evident, is discovered or should have been.C ti P i d f i iti l t di
Policy Coverage Triggers & Allocation
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• Continuous – Period from initial exposure to discovery
Chinese Drywall Challenges Coverage Questions (2 of 2)
Special Exposures
Standard Policy Exclusions….Will they apply??
(a) Expected or Intended – Are the injuries/damage excluded because the policyholders knew or should have known that the drywall would lead to the emission of
(j-6;) Damage to Property that is “Your Work” (l) Damage to Your Work - “sub-contractor exception”?
certain chemicals? How do these exclusions apply?
(f) Pollution – Is the off-gassing of sulphurcompounds in a home “pollution” if the
(m) Damage to Impaired Property or Property not Physically Injured – Is loss of
Pollutants are brought to the job site by the insured and thus excluded?
use of property not actually damaged the result of failure of the performance of the product or service excluded?
(k) Your Product How does this exclusion (n) Product Recall Is the withdrawal(k) Your Product – How does this exclusion apply to the drywall itself? To related damage to the home?
(n) Product Recall – Is the withdrawal, inspection, repair, replacement, or loss of use excluded if the drywall is withdrawn because of a suspected defect?
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More questions than answers at this point. Many issues need to play out on a case by case basis in court.
Chinese Drywall Challenges Underwriting Considerations
Special Exposures
No Easy Answers
Risk Selection – Classes – Who supplied, not just installed, the drywall Supplemental Applications Actual Work – understanding past work activities - critical
Contain Limits / Defense Sub-limits for Chinese drywall claimsDefense within limit for Chinese drywall
P li T i T Cl i M d R d i k (R i iPolicy Triggers – To Contain Horizontal Exposure
Claims Made – Retro date is key (Retro inception as respects imported drywall?)Manifestation – Less effective. Intent is to apply one limit, but roll forward if past work still an issue
Additional Exclusions – To Avoid Coverage
Must be drafted carefully, not too broad
Imported Drywall – Most absolute approach but exclusion must be realistic ---May impact application of standard exclusion Progressive Injury – Excludes injury or damage that y,
Consider impact on standard exclusions
g j y j y gcommenced prior to the policy period.Prior Work – Excludes work that was started (or completed) prior to the policy period – Best alignment of exposure and premium
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p pNo Universal Solution – Need to Consider
New v. Renewal; Type of Operations; Insured Quality, etc
State of the Market 2008/2009 Housing Crises Economic Recession/Recovery
Special Exposures
Short Term / Possible Positives
May improve the quality of home construction currently taking place.y p q y y g pBuilders “slow down” and use their more highly skilled trade contractors to work on the homes they do build.
Long Term / Possible Negatives
Statutes of repose - Next six to ten years, insurers will be responsible for construction sold over the recent several years.Strained financial condition of builders - May force builders to cut back on quality control efforts.efforts. Backlogged inventory of homes and weakened financial situation may make builders less likely/able to make necessary repairs in response to buyers’ demands. Bankruptcy = Insurers are the “deep pockets” with no defense assistance from contractor.
The broad downturn in the economy has impacted the housing industry
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The broad downturn in the economy has impacted the housing industry significantly and, from an insurer’s perspective, more negatively than positively. Underwriting contractor financial condition is more important than ever
Key Takeaways
Classes
GC/Developer vs. Sub
States
Know the drivers GC/Developer vs. SubEnvelope/structural vs. interior/finishGreen ConstructionMass Tort/Class actions –Common/Close Owners
Know the driversMonitor demographic, legislative, regulatory and judicial trends and developments
Common/Close Owners
Emerging Exposures:
Coverage/Pricing Economy
Green Building; Imported Drywall
Completed operationsAggregation/accumulationTransfer of liability Tie in to states, classes, coverage
Additional challengesStay with the basicsUnderwrite financials closely
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Highly market driven
More Information Client Resources
Emerging Exposure
Produced quarterly Provides the latest news, reports, and publications available on Exposure
Newsletter, p , p
many emerging issues that could have an effect on future claim and underwriting activity
R d i f ti i li f b i i d tConnect –
Extranet Site
Resources and information concerning lines of business, industry topics, claims, timely insurance news, and trainingMunich Re publications, presentations, newsletters, white papers, state profiles, and more.
Discuss specific emerging exposuresClient Visit
Your company’s Munich Re America Client or Broker Manager is your first
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Your company s Munich Re America Client or Broker Manager is your first point of contact to discuss all of these services.
Construction Defect History, Trends, Issues and Underwriting ConsiderationsIssues and Underwriting Considerations
December 1, 2009
© Copyright 2009Munich Reinsurance America, Inc. All rights reserved. The Munich Re America name is a mark owned by Munich Reinsurance America, Inc.
The material in this presentation is provided for your information only, and is not permitted to be further distributed without the express written permission of Munich Reinsurance America. This material is not p pintended to be legal, underwriting, financial, or any other type of professional advice. Examples given are for illustrative purposes only. Each reader should consult an attorney and other appropriate advisors to determine the applicability of any particular contract language to the reader's specific circumstances.
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