Reports & Papers-Lessons from Losses: Proof of Loss

Lessons from Losses: Proof of Loss

Pdf Summary

The document discusses the recovery of a stolen art piece years after its theft and emphasizes the importance of a properly executed Proof of Loss and Subrogation Agreement in insurance policies. The case involves the theft of a valuable portrait in 1975, leading to a Subrogation Agreement between the insured and the insurance carrier. Despite the carrier paying a limited amount, the portrait was later recovered and claimed by the insurance company. Legal disputes arose due to the wording of the Subrogation Agreement, which did not confer ownership to the carrier. The document stresses the nuances of subrogation and recommends clear policy wording to avoid ambiguity in such situations. It also proposes Loss Buy Back clauses that allow insured parties to repurchase recovered or damaged property from the insurer. The Inland Marine Underwriters Association (IMUA) shares this case study to educate its members and promote best practices in the commercial inland marine insurance industry. Overall, the key lesson learned from this case is the significance of precise language in insurance agreements to prevent potential conflicts or misunderstandings in the event of loss recovery.

Keywords

stolen art piece

recovery

Proof of Loss

Subrogation Agreement

insurance policies

theft

portrait

Subrogation Agreement disputes

Loss Buy Back clauses

precise language in insurance agreements