Endorsement clause makes insurance policy ambiguous

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Describing an insurance company’s policy as “inherently ambiguous,” the Indiana Court of Appeals has reserved the summary judgment granted by the trial court.

The COA agreed with the appellants that the trial court erred in granting summary judgment in favor of Indiana Insurance Co. because the umbrella policy contained contradictions. In Gary Hammerstone, Susan Hammerstone, Palmor Products, Inc., Northhampton Farm Bureau Cooperative Association, and Cannis-Bilco Distributors, Inc., v. Indiana Insurance Co., 06A04-1211-PL-595, the Court of Appeals reversed the trial court’s order and remanded for more proceedings.

Gary Hammerstone severely injured his right hand and arm while trying to unclog the Trac-Vac, a vacuuming device for yard debris like mulched leaves, grass and sticks. In December 2009, he and his wife, Susan, filed a complaint in Pennsylvania against Palmor Products, which designs and manufactures the vacuum, and Northhampton Farm Bureau Cooperative, which sells and services the Trac-Vac. Later Cannis-Bilco Distributors, a distributor of Palmor, was added as a defendant.

Hammerstone alleged Palmor, Northhampton and CBD were, among other things, negligent; failed to property warn of the hazards of the Trac-Vac; and failed to adequately inspect the machine for defects.

Indiana Insurance, the primary insurer of Palmor, filed motions for summary judgment against Palmor, Northhampton and CBD as well as the Hammerstones. The appellants subsequently filed cross-motions for summary judgment against Indiana Insurance.

In appealing the trial court’s order, the appellants argue the lower court erred when it found the insurance company’s umbrella policy unambiguously denied covered. They alleged the policy was ambiguous because the declarations page clearly stated the policy included coverage for products-completed operations hazard but later language maintained the coverage did not apply to injuries and damages included within the operations hazard.

The COA found the umbrella policy contains an endorsement that contradicts its language defining products-completed operations hazard as “bodily injury” and “property damage.”

“Thus the Umbrella Policy states that it both provides $2,000,000 of coverage for products-complete operations and that the insurance does not apply to products-completed operations hazard injuries,” Judge James Krisch wrote for the court. “As a result, the Umbrella Policy is inherently ambiguous.”




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  1. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  2. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

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  4. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...

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