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Research Library & "Ask an Expert" Service
Below you'll find more information on the Research Library and "Ask an Expert" service available to IIABA members and VU subscribers:
Research Library
 The Research Library is the heart and soul of the Virtual University. In this section, we are building the single broadest and most comprehensive reference library in the industry. The library includes three main divisions:
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Insurance Information. This division is further divided into personal lines, commercial lines, and life & health and financial services.
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Business Information. This division is devoted to agency management issues and general business and professional development skills.
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Technology Information. This division includes information about how to more effectively use the internet and automation in your business.
Now, let's take a look at each of these areas in a little more detail to give you an idea of how comprehensive the Research Library will be...
Insurance Information
We are in the process of indexing all of the major ISO policy forms and endorsements, as well as those from other vendors. There is not a single listing of forms, but each is referenced from within a library article. As we add articles and forms to the library, if there is one missing that you'd like us to add right away, just let us know. Also, keep in mind that these forms are copyrighted by ISO and are provided for educational purposes only...they cannot be used in the marketplace. The same is true for any other third-party forms that we use from AAIS, NCCI, ACORD, or others.
The library will include policy form annotations where our expert faculty will be providing coverage explanations and interpretations. For example, if you're reviewing the ISO Personal Auto Policy (PAP), the "public or livery conveyance" (a.k.a. "carrying persons or property for a fee") exclusion would be explained in this section, along with illustrative coverage or claims scenarios such as the issue of whether or not "pizza delivery" is covered or excluded. Our annotations will, where applicable, also include court case citations to show you, for example, that the Tennessee Court of Appeals and the Louisiana Supreme Court say that the exclusion does not apply to pizza delivery.
We currently have an extensive number of articles that include coverage analyses, along with E&O and sales tips. Many of our articles are based upon real-life questions received by our Ask an Expert service. For example, if you're reviewing the PAP exclusion for the use of separately insured family members' autos, we include an E&O tip that will caution you on how to address this serious exposure gap with your insureds. Likewise, if you have insureds with company cars, there is an article with a sales tip that explains why they might need to purchase the Extended Nonowned Coverage for Named Individual endorsement.
And don't forget three other special features of the Insurance Library:
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ACE Insura, Claims Detective. Published in conjunction with Independent Agent magazine, visit this area each month for a new ACE adventure and be sure to check out ACE's past episodes.
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Forms & Substance. Also published as a monthly column in IA magazine, this area highlights some of the most interesting articles from the Insurance Library.
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Consumer Articles. We are in the process of converting a number of VU articles into consumer versions that you can use in your client newsletters, mailings or web site.
Sample Insurance Articles....
Personal Lines Articles
• Family Member Autos...a Hidden E&O Exposure
• Should I Buy the Rental Car CDW?
• Company Cars and the Personal Auto Policy
• Kid's Kars...Are They Ready for Their Own Policy? Are YOU Ready?
• The Homeowners Policy & College Students
• The Personal Auto Policy & College Students
• Is a GPS Covered by an Auto Policy?
• Does the Personal Auto Policy Cover Pizza Delivery?
• Covering CD's While in an Auto
• Insuring Personal Trusts
• Toxic Mold Claims
• PAP vs. BAP...Which is the Best?
• Accidental Discharge vs. Sewer Backup
• Identity Theft
• When is an Auto "Furnished or Available"?
• What is a "Vermin"?
• What is "Vacant Land"?
• Building Your Own Home...Insurance Implications
• Is a Mini-Van a "Van"?
• Parental Liability & The PAP
• Insuring "Significant Others"
• Driver Exclusions
• Homeowners and Additional Insureds
• Covering PDAs, MP3 Players, and Other Gadgets
• What Liability Limits Do I Need?
• Click here for a sample personal lines article (changes bi-weekly)
Commercial Lines Articles
• Discontinued Operations
• Drive Other Car vs. Individual Named Insured Endorsements
• Workers Comp Experience Mod Q&A
• How to Explain Coinsurance to Clients
• CGL Additional Insureds...A Risky Business
• Does 2 + 8 + 9 = 1?
• Understanding the Agreed Value Option
• Insurance Implications of West Coast Power Outages
• Complying with Triple Net Lease Insurance Requirements
• Is It an Auto or Is It Mobile Equipment?
• The BAP Completed Operations Exclusion...
• Tenant Improvements & Betterments...OWNER Beware!
• Insuring the Independent Contractor Exposure
• Insurance Implications of Terrorist Attacks
• When Do "Occurrences" Occur?
• Is Dirty Water a "Pollutant"?
• Is It a CGL or an E&O Claim?
• Business Income & Additional Insureds
• The CGL "Your Work" Exclusion
• CGL Cross Liability
• Additional Insureds and Certificates
• Coinsurance 101
• Care, Custody & Control in the CGL
• Garagekeepers Gap...Contractual Liability
• Garage Policy vs. CGL+BAP+GKLL
• The "Work You Performed" Exclusion
• Is Sewage a "Pollutant"?
• What Is(n't) "Your Work" in the CGL
• Employees vs. Independent Contractors
• What Deductible Do I Need?
• Hold Harmless Agreements Aren't Harmless
• The "Wear & Tear" Exclusion
• CGL Workmanship Exclusions
• Do Businesses Need to Buy UM Coverage?
• Margin Clauses
• Beware the CG 22 94!
• Business Income Coverage for Unprofitable Businesses
• ISO's New Additional Insured Endorsements
• CGL "Primary and Noncontributory" Certificate Requirements
• Additional Insureds vs. Additional Named Insureds
• Completed Operations and the CG 20 10
• Click here for a sample commercial lines article (changes bi-weekly)
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Business Information
In this section, you'll find everything you need to know to operate your business in the most effective way possible. The information is divided into three main areas:
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Agency Management. Topics include agency best practices, carrier evaluation, employee compensation, E&O loss control, perpetuation, agency procedures, valuation, and more. Visit the Best Practices Gateway for the latest Best Practices information and tools.
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Business Skills. Topics include advertising, business planning, sales, customer service, human resources, and much more. We also plan to add online competency testing for new hires and existing employees, as well as sample career paths.
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Professional Skills. Topics include leadership, management, and communications skills, presentation skills (speaking to civic groups and making sales presentations), writing skills, personal management skills (e.g., time management), and more.
Sample Business Articles....
Agency Management Articles
• What to Do If a Producer Leaves...With YOUR Accounts!
• Employee Internet Usage Policy
• Incentive Compensation Programs
• Combining Incentive Compensation with Employee Evaluations
• The Seven Habits of Highly Effective Insurance Agencies
• E&O Security in the 24/7 Agency (8-part artice)
• Producer Compensation...How Much Can You Afford?
• 12 Reasons YOU Should NOT Sell Your Agency (4-part article)
• Managing Commercial Lines E&O Exposures (3-part article)
• What You Can Do About Insurer Insolvencies (2-part article)
• How Much Should I Pay My Producers?
• The Gramm-Leach-Bliley Act Privacy Provisions
• The 7 Maxims of Time Management
• The Cost to Quote
• Producer Compensation Using a Base and Growth Method
• Producer Equity...Good Idea or Bad?
• Compensating Agency Managers
• CSR Workloads...How Much Can They Handle?
• The Importance of Employment Contracts
• Brokering Business Through Other Agencies...How Much is it Worth?
• Improving Personal Lines Loss Ratios
• Overcoming Barriers to Agency Growth
• Establishing a Bonus Compensation Plan
• Producer 'Non-Compete' Agreements
• 13 Caveats in Using E&S Markets
• Warning: Furnishing MVRs to Insureds Can be Hazardous....
• Underwriter Submissions...How to Get to the Top of the Pile
• Incentive Compensation for Non-Producers
• Cleaning Up Loss Ratio Problems
• Agency Underwriting...Establishing a Minimum Limits Policy
• Are CSRs "Exempt" Employees?
• Following Up on Certificates of Insurance
• What HIPAA Means to You and Your Clients
• Cut-Through Endorsements
• Employee Compensation and Productivity
• Correcting CLUE Report Errors
• How to Create Enforceable NonCompete Agreements
• How to Solve the HO Availability/Affordability Crisis (2-part article)
• Should Agents Review Contracts for Insureds?
• The Danger of Not Reporting Claims
• E&O Exposures Involving Non-English Speaking Prospects
• Click here for a sample agency management article (changes bi-weekly)
Sales & Marketing Articles
• How to Make 50 (or more) Sales Calls in a Day
• How to Increase Your Commissions by 50%!
• 11 Mistakes Most Sales People Make
• 25 Tips to Improve Your Telephone Cold Calls
• Building Value Rather Than Cutting Price
• Why Some Agencies Can Sell and Others Can't
• You're Selling the Wrong Thing!
• Negotiating the Sale
• 17 Ways to Build Your Personal Lines Book
• Selling on the Internet...How One Agent Does It
• The Myth that Price Drives the Sale
• The "Born Salesman" Myth
• The Value-Added Sales Call
• Customer-Focused Selling
• Wrap Around Selling
• How Can I Sell When I'm Not the Lowest Price?
• Beyond Consultative Selling
• The Relationship Selling Myth
• Making a Sales Plan
• The Impenetrable Account
• Marketing Personal Lines
• $200K Commission per Producer...Dream or Reality?
• Dealing with the Producer Who Has Leveled Off
• 14 Tips for Selling in a Hard Market
• Are You Listening to Me? Six Steps to Closing More Sales
• How to "Brand" Your Agency
• The ABC's of Marketing
• Hard Market Marketing
• How to Ask For and Get Referrals
• Is Insurance a Commodity? Should It Be Sold That Way?
• Hard Market Shenanigans
• Selling Commodities
• 15-Step Commercial Lines Marketing Program
• Creating Powerful Sales Letters
• The Five Most Common Mistakes Salespeople Make
• Relationships with Inactive Clients
• How to Maximize the Power of a Sales Call
• Do Advertising and Marketing Work?
• Six Steps to Handling Objections
• Click here for a sample sales and marketing article (changes bi-weekly)
Customer Service Articles
• Company Service Centers
• Easy to Do Business With Test
• 14 Tips for Calming Upset Customers
• Increase Profits by Getting Rid of Customers
• Top 10 Mistakes Employees Make With Customers
• When Your Customers Come Calling (5-part article)
• Increase Service by Reducing Customers
• How to Change a Dissatisfied Customer Into an Angry One
• Customer Satisfaction Guidelines
• How to Improve Customer Service
• Three Golden Rules of Customer Service
• Using Technology to Improve Customer Service (6-part article)
• Four Ways to Motivate CSRs
• Establishing Customer Standards
• When an Agency's Service Standards Fail
• Relationship Marketing in the 21st Century
• Should CSRs Sell?
• Puttin' on the Ritz...Building a Customer Service Culture
• The 10 Commandments of Customer Service
• Customer Service Tests
• Customer Profiling for Account Development
• The Retention Myth
• Six Ways to WOW Your Customers
• Customer Service Report Cards
• Why Customers Leave
• CSR Job Titles
• Getting Rid of Abusive Customers
• Top 10 Mistakes Employees Make With Customers
• Calming Upset Customers...The Southwest Way
• How Can You Improve Customer Service?
• Speed: The Difference between Great Service and Even Greater Service
• Top 10 Telephone Basics
• The Value of a Customer
• The Unnatural Transition from Service to Sales
• The Basics of Customer Service
• Fixing $12 Haircuts
• Click here for a sample customer service article (changes bi-weekly)
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Technology Information
Technology, if used properly, can dramatically improve the bottom line of any business. The information in this section is divided into three main areas:
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Agency Management Systems. We'll show you what to look for in purchasing or upgrading an agency management system, including a comparison of all the major systems currently in use.
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General Automation Issues. Here we'll discuss what hardware and software is best for your business, plus practical tips for using the Microsoft family of products.
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The Internet. We'll provide practical tips, tools and techniques on how to more effectively use the internet for marketing, sales and customer service, and we'll show you how to build or manage your web site...what works and what doesn't work.
Sample Technology Articles....
Technology & Internet Articles
• How to Build an Agency Web Site that Works!
• More Great Insurance Web Sites
• Top 10 Web Sites: Insurance & Risk Management (4-part article)
• Myths, Scams & Spam (2-part article)
• E-Filing: Higher Sales, Lower Costs, and Better Service
• Selling Insurance on the Internet
• Online Insurance Information: Caveat Emptor!
• How to Sell Insurance on the Internet...the Old Fashioned Way
• Selling on the Internet...Fact or Fiction?
• How to Protect Yourself from Email Viruses
• Insurance Sales and The Internet
• Using the Internet and Automation as Sales Tools
• How to Find Stuff on the Internet (3-part article)
• Why Agency Web Sites Don't Work
• Why Agency Web Sites DO Work
• Accepting Online Payments...Beware!
• Marketing Your Web Site
• Beware of What You Say in Email!
• Top 10 Mistakes in Agency Web Site Design
• How to "Clean" Your Computer
• How to Find Anything Fast on Your PC
• The Danger of Buying Insurance on the Internet
• How to Build a Web Site...Yourself
• 21st Century Agency Management Systems
• Transactional Filing
• The Concept of an Intranet
• Electronic Records Admissibility
• Email Filters & Spam
• Improving Agency Workflows with Technology
• Web Site Privacy Statements
• The Paperless Agency - Boom or Bust
• Spam: Can the Cure be Worse Than the Disease?
• Automated Certificate Systems...How Accurate Are They?
• How Credible is Your Web Site?
• Email Marketing
• A.C.T. – It Serves Your Technology Needs First!
• Securing Your Data
• Technology Investments That Build Agency Value
• FREE Stuff...MS Products, Virus Software, PDF Creator
• Enhancing Your Agency Web Site
• Organizing the Desktop
• Special Automation Survey
• Agency Workflow Issues: Credit Scoring and Commission Downloads
• Evaluating ASPs
• Backlog Should Not be Acceptable in Your Office
• CAN-SPAM Act of 2003
• Shredding Electronic Data
• The Real-Time Revolution: Redefining How We Work
• Insurance Coverage for Fax Broadcasts
• Take Charge of Your Agency's Digital Security
• Automation Training
• Focusing on Improving Agency-Carrier Technology Agreements
• Roadmap to Effective Agency Information Management
• Building Improved Agent-Carrier Interfaces Brick by Brick
• Improving Agency Workflows When Carriers "Turn Off the Paper"
• Click here for a sample technology article (changes bi-weekly)
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IMPORTANT. The views expressed in articles written by our faculty members and others do not necessarily reflect the views of IIABA.
"Ask an Expert" Service
 Big "I" University users sometimes need answers to questions that they can't find in the Research Library, Classrooms or Student Lounge. In such instances, we have a faculty of experts who can usually answer, or find an answer, to your questions. So far, the VU faculty has responded to well over 10,000 questions ranging from insurance coverage and claims problems to compensation and agency valuation questions.
Questions are submitted on a form within the Experts area of the VU and are routed to up to 40+ experts in a number of fields. Questions are tracked and faculty responses compiled so that a consolidated response is emailed to the questioner usually within 3-5 business days, and often much quicker.
Note: This is a members-only service.
Due to the volume of questions, we are unable to respond by phone, fax or regular mail. In order to meet the demands of the service, we can only correspond via email. Effective September 1, 2004, all "expert" questions must be submitted by form from within the VU. Since this service is no longer available to nonmembers and nonsubscribers, we cannot respond to email inquiries due to the lack of documentation as to member/subscriber status.
Sample "Ask an Expert" Q&A
The following is an example of an actual form-submitted "Ask an Expert" question and answer:
What is your email address?
address@domain.com
Select the type of question.
Insurance Question
ISO form number and edition date.
HO 00 03 06 91
What State, Province or country are you in?
ND
Who is your employer?
Insurance Regulator
The question entered.
I got word of your service from an associate and have a question involving a consumer complaint. The claim was reported as such:
The wind blew out a "plug" at the end a roof vent and bats got inside causing considerable damage to the insulation.
The insureds did not hear or see anything, however, eventually noticed a smell and finally found the cause. No one has a clue as to why the "plug" blew out and the insurance company is not disputing that part of the claim.
The insuring policy has an exclusion for losses caused by "birds, vermin, rodents, insects or domestic animals." The company has made the determination that bats fall under the definition of vermin.
In checking with a standard dictionary, vermin is defined as: "(1) any of various small animals or insects that are destructive, annoying, or injurious to health, such as cockroaches or rats; (2) any of various animals that prey on game, as the fox or weasel."
Additionally, the same dictionary defines a bat as an animal.
We think the company has made the right call, but was wondering if someone out there could offer more to go on, either in support of claim payment or the denial.
Thanks for your time.
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I ran your question by our faculty and their opinion was unanimous that a bat is not a "vermin." This position is based on the generally accepted meaning of the word "vermin" (or lack thereof) and court cases that we've seen.
Not all animals are vermin. In fact, since the policy excludes "domestic animals," an argument can be made that damage caused by any non-domestic animal is covered...unless that animal is a bird, rodent, insect, or "vermin."
I'm attaching excerpted copies of six court cases that I happened to have on file dealing with the issue of "vermin." Of all the court cases I've seen, with one exception, EVERY court that has reviewed this term has found it to be ambiguous. In the one case where the exclusion was permitted, the damage was caused by mice and rats, which are conceded to be "vermin" by just about any accepted dictionary definition. The same can't be said for other animals such as bats.
One of our faculty members said he thought he had seen one or more court cases that said that bats, specifically, were NOT vermin, though I couldn't track any down.
In addition to the dictionary definition you cite, here are some others to demonstrate the diversity of "vermin" definitions:
The American Heritage® Dictionary of the English Language, Fourth Edition, 2000:
Vermin...Various small animals or insects, such as rats or cockroaches, that are destructive, annoying, or injurious to health
In the attached case of Sincoff v Liberty Mut. Fire Ins. Co., 11 NY2d 386, 390 (NY Court of Appeals, 1962), the court cites the following definitions:
Webster's New International Dictionary (2d ed., Unabridged, 1956) defines the word vermin as "[noun]...1. Any noxious, mischievous, or disgusting animal...2. Specif.: Such an animal, or esp. such animals collectively, when of small size, of common occurrence, and difficult to control. Various insects as flies, lice, bedbugs, fleas, etc., various mammals, as rats, mice, weasels, etc., and sometimes such birds as hawks and owls, are classed as vermin."
Funk and Wagnall's New Standard Dictionary, at page 2644, defines vermin as "(1) Obnoxious insects, especially parasitic ones, as lice, fleas, or bedbugs. (2) [Eng.] Animals destructive to game, as weasels, polecats, badgers, otters, hawks, or owls. (3) [Austral.] Animals injurious to vegetation or to domestic animals."
In England, the word "vermin" has been defined by statute as follows: "'vermin' includes bugs [bedbugs], fleas, lice and itch mites and their eggs, larvae and pupae". (Public Health [London] Act, 1936, 26 Geo. 5 & 1 Edw. 8, ch. 50, § 304, subd. [1]; 15 Halsbury's Statutes of England [2d ed.], p. 1034). These creatures, constituting "vermin" under the English definition, all are parasitic in nature.
In the attached case of Jacob Sincoff, et al. v. Liberty Mutual Fire Insurance Company, 25 Misc. 2d 530; 207 N.Y.S.2d 178; (NY Civil Court, 1960), the court cites the following definition:
The Encyclopedia Americana (Vol. 28 [1955 ed.], pp. 16-17) defines "vermin" as: "A term comparable to 'weed' signifying small animals obnoxious in some way to human plans and operations. It has been applied to rats, mice, gophers, weasels, and other mammals; such insects as fleas and lice and at times to hawks, owls and other birds."
In the attached case of North British & Mercantile Insurance Company v. Mercer, 211 Ga. 161; 84 S.E.2d 570; (Georgia Supreme Court 1954), the court says:
The smaller dictionaries define vermin to mean "noxious, mischievous or mean animals or insects." The larger New International Webster's Dictionary (2d ed.), after giving in substance the above meaning, proceeds to specify or particularize by naming the class of animals and insects to which it refers "as flies, lice, bedbugs, fleas, etc., various mammals, as rats, mice, weasels, etc."
In the attached case of Stafford L. & Doris Jones v. American Economy Insurance Co., 672 S.W.2d 879; (Texas Court of Appeals, 1984), the court cites the following definition:
Webster's New Collegiate Dictionary, 1301 (1974) defines "vermin" as "small common harmful or objectional animals (as lice or fleas) that are difficult to control...birds and mammals that prey on game...an offensive person."
In the attached case of Christ Episcopol Church of Bastrop, LA v. Church Insurance Company, 731 So. 2d 1071; (Louisiana Court of Appeals, 1999), the court cites these definitions:
Webster's Revised Unabridged Dictionary (G. & C. Merriam Co., 1913) defines vermin as: [Pg 5] 2. A noxious or mischievous animal; especially, noxious little animals or insects, collectively, as squirrels, rats, mice, flies, lice, bugs, etc.
The American Dictionary of the English Language (Webster, 1828) which also listed rats and mice as being "vermin."
American Heritage Dictionary of the English Language (Houghton Mifflin Co., 2d college ed. 1976), defines vermin as: 1. Any of various small animals or insects that are destructive, annoying, or injurious to health, cockroaches or rats.
The Random House Dictionary of the English Language, Unabridged (Random House, 2d ed. 1987), defines vermin as: 1. Noxious, objectionable or disgusting animals collectively, esp. those of small size that appear commonly and are difficult to control, as flies, lice, bedbugs, cockroaches, mice, and rats.
So, as you can see, the dictionary definitions vary widely, depending on what dictionary you're looking at. For that reason, most courts have found that there is no universally accepted definition of "vermin," so, therefore, the term is ambiguous.
The only common definition we can find is that vermin are, primarily and collectively, very small, noxious creatures such as bugs, lice, etc. or mice, rats and similar rodents. Oxford English Dictionary (Oxford Univ. Press, 2d ed. 1991) shows that the term "vermin" as it has been used regularly over the centuries, starting at least in 1513, has been accepted to include rats and mice.
The word "vermin" comes from the Latin vermis, which means "worm." That would imply that the origins of the word "vermin," dating to at least the early 16th century principally involve insect-like animals. Over the centuries, with scourges of mice and rats in Europe, that class of animals has been added to the definition.
In addition to the above, below is a real quick analysis of the logic used in each of the attached court cases:
North British & Mercantile Insurance Company v. Mercer, 211 Ga. 161, 84 S.E.2d 570 (Georgia Supreme Court 1954)
In this case, damage was caused by squirrels. Although squirrels, like rats and mice, are in the order of rodentia, the court felt, citing a dictionary definition, that not all rodents are "vermin," implying that, while rats and mice probably are, a squirrel is not.
Sincoff v Liberty Mut. Fire Ins. Co., 11 N.Y.2d 386, 183 N.E.2d 899, 230 N.Y.S.2d 13 (NY Court of Appeals, 1962)
This case involved damage caused by carpet beetles. The court held that because the parties' experts disagreed over the meaning of the term vermin, and because the dictionaries had varying meanings, the term was capable of more than one meaning and the doubt was therefore resolved in favor of plaintiffs. One of the experts acknowledged that "vermin" is not a scientific term, but rather that it is a popular colloquial expression with loose and varied popular and dictionary definitions.
In this case, as it is in any case involving "all risk" coverage, the court put the burden of proof on the defendant to conclusively demonstrate that a carpet beetle was a vermin. The court said, "It was not sufficient for the defendant to demonstrate that a purchaser of the policy involved herein might have construed 'vermin' to include carpet beetles. Defendant, to derive any benefit from the exclusory clause, was obliged to show (1) that it would be unreasonable for the average man reading the policy to conclude that nonparasitic carpet beetles were not vermin and (2) that its own construction was the only one that fairly could be placed on the policy. This the defendant was unable to do."
Umanoff v. Nationwide Mutual Fire Insurance, 110 Misc. 2d 474, 442 N.Y.S.2d 892 (NY Civil Court, 1981)
This case involved damage by raccoons where the court said, "A claim for damage to the structure of plaintiff's home following an invasion of raccoons is not barred by the exclusionary clause of the insurance policy, which specifically omits coverage for 'vermin', but does not define the term; the term "vermin" is capable of more than one meaning and, since ambiguities are construed against the insurer, the burden was on the insurer to establish that the term not only was susceptible of being defined by the average man so as to include raccoons, but that such definition was the only one that could fairly be placed thereon; moreover, including domestic animals as one of the excluded perils implies that nondomestic animals such as raccoons are covered."
Jones v. American Economy Insurance Co., 672 S.W.2d 879 (Texas Court of Appeals, 1984)
This case involved damage by squirrels and the court opined, "'Vermin' is not a particular class of animals, such as rodents, to which squirrels belong. It is apparent that the definition of 'vermin' is very broad, covering entities as diverse as insects, animals, and persons. The few cases we have found in other jurisdictions are divided on this question. We conclude that the term does not have a simple, plain, and generally accepted meaning and that it is susceptible of more than one reasonable interpretation; therefore, we hold that the term is ambiguous."
Marks v. Trinity Universal Insurance Company and Hardy & Murray, Inc., 531 So. 2d 516 (Louisiana Court of Appeals, 1988)
This case involved raccoons and the court cited the logic of Jones v. American Economy above to find that "vermin" was ambiguous.
Christ Episcopol Church of Bastrop, LA v. Church Insurance Company, 731 So. 2d 1071 (Louisiana Court of Appeals, 1999)
This is the one case we know of where the court upheld the "vermin" exclusion. The case involved damage to the church organ caused by mice and rats. In citing various dictionary definitions and other sources, the court concluded that, despite varying definitions of "vermin," the common feature in each was the the term includes mice and rats.
So, based on the above, in our opinion the insurer would be hard pressed to demonstrate, as required in an "all risk" policy, that the term "vermin" includes bats and damage is, thus excluded. If they can cite case law that supports that position, I'd love to get the citation so I can add it to my files. I've personally been involved in claim denials based on the "vermin" exclusion that involved raccoons, skunks, turtles, and snakes. In each claim, after looking at the case law, the insurers reversed their denials and paid the claims.
- Bill
Bill Wilson, CPCU, ARM, AIM, AAM
Director, IIABA's Virtual University
http://www.iiaba.net/vu
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Did you know that you can get questions (and answers) like the one you submitted every other Friday in our FREE bi-weekly email newsletter, The VUpoint? Each issue includes at least six articles on personal lines, commercial lines, agency management, sales and marketing, and technology and the internet. For more information and to subscribe, go to: http://www.iiaba.net/VU/Newsletter/NewsletterMain.htm
Ask an Expert Service
DISCLAIMER: Information provided by the "Ask an Expert" service is intended for educational and informational purposes only. IIABA neither endorses the advice of these professionals nor do we nor they make any warranty or representation, express or implied, with respect to the accuracy, completeness or usefulness of the information provided through this service. Information provided in this response represents the views of one or more experienced professionals on a given topic; it is not a recommendation that a particular course of action be followed. IIABA and our volunteer faculty do not assume and have no responsibility for liability or damage which may result from the use of any of this information.
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