Jury Question Exists as to Insurer’s Knowledge of Open Flame

Whether an insurance company had knowledge of information about violation of its policy terms was a jury question, a federal court ruled Tuesday. The case hinges on whether the company knew a business operating in the building it was insuring used open-flame cooking and continued insuring the location notwithstanding that knowledge.

Holly Realty LLC sued Union Mutual Fire Insurance Company for breach of contract after the company rescinded its general liability policy when a fire damaged the insured buildings. A report investigating the fire found that one of the buildings housing a pizza restaurant used open-flame cooking, which Holly had ...