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Indiana Farm Bureau Insurance Co. v. Harleysville Insurance Co.

ELR Citation: 42 ELR 20068
Nos. 43A04-1109-PL-507, (Ind. Ct. App. , 03/16/2012)

An Indiana appellate court reversed and remanded a lower court decision that an insurer need not defend and indemnify a service station owner in underlying state administrative proceedings concerning the environmental remediation of the site. The insurer argued that because the loss occurred prior to the initiation of the policy's coverage, the "known loss" doctrine excused the insurer from its obligation to defend and indemnify the owner. But genuine issues of material fact exist as to the owner's actual knowledge of the damage before the insurance policy went into effect. Genuine issues of material fact also exist as to whether timely notice of the loss was given. Nor does the policy's pollution exclusion clause bar coverage. The court, therefore, reversed and remanded a lower court decision granting summary judgment in favor of the insurer.