Excerpts from claimsjournal.com: A federal appellate court recently ruled that an insurer could be responsible for up to $14 million of a mortgage company’s settlement with the estates of two Chicago firefighters who died while responding to a fire at an abandoned laundry building. The decision highlights the complexities of insurance coverage, particularly when it comes to properties in disrepair and the responsibilities of mortgage companies. The case involves Apex Mortgage Corp., which had an excess liability policy through a Chubb unit. A district court initially ruled that no coverage was due because the policy excluded properties held by a “mortgagee in possession.†However, the 7th Circuit Court of Appeals found that there were factual disputes about whether Apex actually had control over the property located at 1738-1744 E. 75th St. “The district court determined that Apex indisputably possessed the property, but we think the court jumped the gun,†the appeals court stated. The case, *Apex Mortgage Corp. v. Great Northern Insurance Co.*, revolves around a building that had fallen into severe disrepair, with the city citing the owners for 14 code violations. The structure was described as exposed to the elements, trashed, and accessible to vagrants. The property’s original owners, Chuck and Richard Dai, had defaulted on their mortgage. When Apex threatened to foreclose, the Dais offered to transfer the deed to the company. Apex accepted the deed, but only after an inspection to confirm the property was marketable. They installed new locks and a tarp over the roof, but ultimately decided not to proceed with foreclosure. In April 2009, Apex returned the deed to the Dais, along with a letter urging them to secure the property—though the Dais claim they never received it. On December 22, 2010, a fire broke out at the property, leading to the collapse of the roof just 20 minutes later. Firefighters Corey Ankum and Edward Stringer were killed while searching for homeless individuals inside. Two other firefighters were injured but survived. The estates of the deceased firefighters filed wrongful death lawsuits against Apex, which settled for $15 million. Great Northern Insurance Co., Apex’s primary insurer, paid the $1 million policy limit. However, Apex sought the remaining $14 million from its excess policy with Federal Insurance Co., which denied coverage based on the exclusion for mortgagees in possession. District Court Judge Virginia M. Kendall sided with Federal, ruling that Apex was in possession of the property at the time of the fire. But the 7th Circuit disagreed, stating that the evidence raised enough questions to warrant further review. The court noted that Chuck Dai had hired a handyman to board up the property after the city cited him for code violations. Despite this, he failed to complete the necessary repairs and was eventually sentenced to 180 days in jail for his negligence. During criminal proceedings, he did not dispute the city’s claim that he controlled the property. The panel also rejected Federal’s argument that Apex admitted to being in possession when it agreed to settle with the firefighters’ estates. “Settlement does not create a judicial ruling,†the court explained. “Nor does it vindicate a plaintiff’s theory of liability. Parties can settle for any number of reasons, and the obligation to pay comes from the settlement itself—not from one party’s liability.†The case has now been sent back to the district court for further proceedings, highlighting the ongoing legal battle over insurance coverage, property responsibility, and the consequences of neglecting abandoned buildings. This ruling may have significant implications for how courts interpret the term “mortgagee in possession†and the obligations that come with it. Rubber Accelerators for Vulcanization,Antidegradants to Extend Rubber Life,Rubber Plasticizers for Flexibility Improvement Henan Kepeiao New Materials Co.,Ltd. , https://www.kopeochem.com