Md. High Court Sets 2-Part Test For Biz Pursuits Exclusion

Law360, New York (June 26, 2014, 9:48 PM EDT) -- Maryland's highest court on Tuesday established a two-part test for determining when insurers should apply an exclusion in a homeowner's policy for business activities, while setting aside Erie Insurance Exchange's win in a coverage battle over defamation claims.

The Maryland Court of Appeals joined the Third Circuit and several other state Supreme Courts in holding that an activity will trigger the business pursuits exclusion found in homeowners policies if the policyholder is regularly or continually engaged in that activity to earn a living and if the...
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