Colleen M. Murphy, co-chair of Goldberg Segalla’s insurance agents and brokers practice, was interviewed by Law360 Insurance regarding the February 25 ruling by the Mississippi Supreme Court that a policyholder’s failure to read an insurance policy doesn’t excuse it from paying deductibles that were clearly stated. As Law360 noted, the decision preserved a win for Lloyd’s of London in a fight with nursing home companies over a $1.25 million deductible.
Colleen told Law360 the decision was sound. The article noted: “If the high court had sided against Lloyd’s, policyholders could receive the benefit of lower deductibles even though the policies they actually bought came with low premiums and high deductibles.”
“It’s important that insureds be held to some responsibility for contracts that they execute, and [they] cannot remain ignorant to the terms of their contract,” Colleen told Law360.