Does Utah Comply with the Environment friendly Proximate Causation Rule for Insurance coverage Coverage Interpretation? | Property Insurance coverage Protection Legislation Weblog


Jen Silver owns a roofing enterprise and is a enterprise educator to restoration contractors and roofers. She requested whether or not Utah follows the environment friendly proximate causation rule for insurance coverage coverage interpretation after studying yesterday’s submit, Mathew “One T” Mulholland Does a Nice Job Educating Georgia Public Adjusters on Georgia’s Environment friendly Proximate Trigger Doctrine and How It Applies to the Put on and Tear Exclusion. Silver lives in Utah when not crossing the nation offering academic seminars.

The Utah Supreme Court docket made this ruling relating to the environment friendly proximate trigger check:1

We imagine that the correct path to comply with is to acknowledge the environment friendly proximate trigger rule solely when the events haven’t chosen freely to contract out of it. Because the Colorado Supreme Court docket acknowledged in Kane v. Royal Insurance coverage Co. of America, ‘ ‘[T]he environment friendly proximate trigger’ rule, if it had been adopted by this court docket, should yield to a well-settled precept of legislation: particularly, that courts is not going to rewrite a contract for the events.’ Sofa’s Cyclopedia of Insurance coverage Legislation is in step with this conclusion:

The ideas of causation shouldn’t be so intently utilized as to defeat the intent of the events as manifested within the contract of insurance coverage.

The rule applies in Utah, however policyholders should be involved with anti-concurrent causation language and different causation clauses within the coverage.

For contractors and others wishing to study extra about points going through insurance coverage restoration contractors, I counsel you watch a presentation she recorded at this hyperlink. She tackles the problems in a really easy method, and these are points talked about by all roofers and restoration contractors coping with insurance coverage corporations.

Thought For The Day

Builders finally study that the wall shouldn’t be a barrier however a solution to one other room.

—Robert Brault

1 Alf v. State Farm Fireplace & Cas. Co., 850 P.2nd 1272 (Utah 1993).


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