Rauchwerger, Errera And Ferrini Score MCS-90 Subrogation Victory
September 8, 2010
CM Partner Dean S. Rauchwerger and associates Mike S. Errera, and Allison K. Ferrini achieved Summary Judgment for their insurer client in Lake County, Illinois on a business auto policy MCS-90 endorsement. MCS-90 endorsements cover trucks in interstate commerce to ensure that in the event of an accident, even if there is a valid coverage defense, an injured party can be compensated. Following payment, the insurer can seek recovery of the judgment or settlement payments from their insured for non-coverage or breach of the policy terms.
The Court ordered Defendant trucking company to reimburse the insurer for the entire paid claim. The Court found Defendant's truck, involved in the subject accident, was not disclosed to the insurer before the loss, there were no premiums paid for coverage of the truck before the loss, and the failure to disclose the truck's use and existence before the loss breached the policy.
Any questions on pursuing subrogation recoveries for MCS-90 endorsements, please contact Dean (drauchwerger@clausen.com), Michael (merrera@clausen.com) or Allison (aferrini@clausen.com).
