Tag: insurance-policy
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The Intentional Acts Exclusion
In personal injury cases, it’s important to know if the person you’re suing has insurance to cover the costs. If they do, they’ll have a lawyer paid for by the insurance, and you’re more likely to get a big settlement if you win. In cases where someone hurt you on purpose, their insurance might not…
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The Other Property Problem: Applying the Economic Loss Rule to Construction Contracting Claims
The economic loss rule in Florida says you can’t sue for damages in a contract dispute unless there’s personal injury or damage to other property. That’s easy to understand when it comes to products, but it gets tricky with construction contracts because there’s no clear line between what’s considered “other property” and what’s not. This…
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The Complaint for a Pure Bill of Discovery: A Living, Breathing, Modern Day Dinosaur?
A pure bill of discovery is an old legal remedy that asks the court to make the other party share information or documents. It’s not used much anymore because modern rules of procedure cover most types of discovery. But sometimes it’s still necessary to use a pure bill of discovery to get the information needed…
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Florida’s New Good Faith Duty on an Insurer Not to Settle
A liability insurance company must carefully handle multiple claims that could exhaust its insuredâs policy limits. It can’t settle too quickly, leaving other legitimate claims with no coverage. In the Farinas case, the insurer settled with some claimants quickly, leaving insufficient coverage for others. The court ruled that the insurer could be liable for settling…
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Can Two Wrongs Make a Right to Seek Indemnification of Punitive Damages From a Liability Insurance Carrier?
In some situations, an insured person may act in a really reckless or careless way, like driving drunk and causing a car accident. When this happens, their insurance company might not have to pay for any extra punishment costs, because they think it’s not fair for insurance to cover for that. However, if the insurance…
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Legal, Practical, and Ethical Considerations of Medical Malpractice Settlements
A doctor who is being sued for medical malpractice has to decide whether to settle the case or go to trial. This decision has legal, practical, and ethical implications. The defense team, which includes the doctor, the lawyer assigned by the insurance company, and the adjuster, must weigh the risks and benefits of settling the…
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A Sea of Confusion: Expert Legal Testimony Adrift in Florida
When it comes to legal matters, experts usually can’t give their opinions in court because that’s the job of the judge and jury. But there are some exceptions to this rule. Florida has certain rules about when expert opinions can be allowed, but they’re not always clear. Different court decisions give different guidance, so it…
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Are Consequential Damages Recoverable Under a Title Insurance Policy for the Time It Takes to Attempt to Cure a Title Defect?
Time is very important in real estate, especially when property values are going down. If there’s a problem with the title of a property, the seller might ask their title insurance company to fix it quickly so they don’t lose the sale or the value of the property. But even if the title insurance company…
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Planning for Large Estates After TRA 97: A New Look at Some Old (Charitable) Friends
The Taxpayer Relief Act of 1997 didn’t actually provide relief for many rich people because the estate tax credit is only available for estates worth less than $10 million. This means that larger estates still face a 55 percent tax rate, just like before. As a result, estate planning techniques like life insurance trusts and…
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Tax and ERISA Considerations Associated With Nonqualified Severance Benefit Plans Sponsored By Professional C Corporations
Nonqualified deferred compensation arrangements are used by employers to attract and keep employees, allow them to save money for the future, and provide extra pay and incentives. However, these arrangements are usually not backed by any assets, so there is a risk that the employer may not be able to pay. There are ways to…
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Qualifying Trust Transfers for Split-gift Treatment
Section 2513 of the tax code allows a married couple to split gifts, meaning they can both take advantage of tax exclusions and exemptions for gifts made by one spouse. This can help minimize gift tax liability and maximize the amount that can be gifted to others. It can get complicated when the non-gifting spouse…
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Employer-owned Life Insurance After the Pension Protection Act of 2006
Employers often buy life insurance for their employees, but there have been some cases of abuse. Congress added a new law, 101(j), to stop these abuses. This law has extra requirements for employers, and if they’re not followed, the money from the life insurance could be taxed. In the 1980s and 1990s, some companies started…
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Asset Purchase Stockholders’ Agreements
A stockholders’ agreement is like a contract for people who own a company together. It helps to keep things fair and protect everyone’s interests. It can say things like who can buy or sell the company’s stock, how important decisions are made, and how to keep business secrets safe. It’s a good idea to have…
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Estate Planning: The Clock is Ticking Use it or Lose it Before 2013
In 2010, President Obama signed a law that changed the estate, gift, and generation-skipping transfer (GST) tax rates and exemptions. These changes will end in 2012, and if new laws aren’t passed, the old tax rates and exemptions will come back in 2013. This means that people should consider using the new tax laws to…
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It’s 2013: Now What?
In 2011 and 2012, lawyers were advising clients about tax and estate planning opportunities to transfer up to $5 million tax-free. However, Congress passed the American Taxpayer Relief Act of 2012 (ATRA) at the beginning of 2013, making the planning efforts unnecessary in many cases. ATRA maintains the $5 million exclusion amount and other important…
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A Primer on Private Placement Life Insurance
PPLI is a type of life insurance that can help with income tax and estate planning. It’s like regular life insurance, but with more investment options and lower costs. It’s a good option for people who want to save on taxes and have more investment flexibility. However, there are certain rules and requirements that need…
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Closing Protection Letters
Closing protection letters are offered by title insurance companies to address concerns of lenders about the liability of their approved attorneys or agents. These letters outline the conditions under which the title insurance company will accept liability for the acts or omissions of its agents. They indemnify lenders against damages arising from certain claims against…
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The Interpretation of 7(a) and 7(b) of Title Policies Under Florida Law: Synergism Revisited
Title insurance policies do not guarantee that the title is without errors, and a title company can take legal action to fix any issues. If the title company’s action causes a delay or financial loss, it was unclear who would be responsible for covering those costs, but recent court cases have clarified this issue. In…
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PAVE: A Self-Help Technique for Estate Tax Valuation Methods
Federal estate tax is usually calculated based on the value of the assets at the time of the person’s death, even if the value of the assets goes down afterwards. But there is a way for the estate to use the lower value if it’s better for them. It’s called a Protective Alternate Valuation Election…
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Durable Powers of Attorney: A Less Restrictive Alternative?
In Florida, there are laws that give someone the power to make decisions for another person if they become unable to do so. These laws have changed over time to allow more people to act as a decision maker. An article questions how much power these decision makers actually have and if they need to…
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Understanding the Testamentary Effects of Community Property Rules
Due to a lot of people moving to Florida, the state has community property rules that are important in legal decisions. In 1992, the Florida probate laws were changed to include a version of the Uniform Disposition of Community Property Rights at Death Act. This act affects what happens to a person’s property after they…
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Rasmussen Court Allows Both Spouses $125,000 Exemptions and Protects Appreciation Within 1,215 Days of Bankruptcy
After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), courts have interpreted the limits on homestead protection. In most states, including Florida, debtors can only exempt up to $125,000 of their homestead property if they filed for bankruptcy within 1,215 days of acquiring the property. In the case of Rasmussen, a couple…
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Unraveling the Mysteries of the Florida Exemptions for Life Insurance and Annuity Contracts, Part 1
Florida has laws that protect residents’ assets, like their primary residence, life insurance, annuities, retirement accounts, and education savings accounts. In this two-part article, we’ll look at the rules for protecting life insurance and annuities in Florida. Part one focuses on how life insurance is protected after the insured person passes away, how the policy…
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Morey v. Everbank: Three Drafting Tips to Avoid a Troubling Decision
In the Morey case, a court decided that life insurance money was not protected from the insured person’s debts, even though Florida law usually protects it. This is important for trusts and estates because it affects how people’s money is handled after they die. Carlton Morey set up a trust to pay for his last…