Preview
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
EXHIBIT
"B"
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
Canal
I N S U R A N C E
November 29, 2023
FREEDOM TRANS CORP
ATTN. BALWINDER SINGH
402 NOTTINGHAM LN
COLLEGEVILLE, PA 19426
KENNETH JACOBS
1 W FARMS SQUARE PLAZA
APT. 2
BRONX, NY 10462
CERTIFIED & REGULAR U.S. MAIL - RETURN SERVICE REQUESTED
Insured: Freedom Trans Corp.
Driver: Kenneth Jacobs
Claimant: Josue Ventura
Claim Number: L544048
Date of Loss: August 8, 2023
COVERAGE DECISION
Dear Mr. Singh and Mr. Jacobs:
This letter is being sent to you regarding the above referenced claim which was reported to Canal Insurance
("Canal") on September 14, 2023. This claim and lawsuit arise out of an incident in which it is alleged
Company
that a truck driven by Kenneth Jacobs rolled into a parked vehicle. Josue Ventura was apparently inside the vehicle
that was hit and was injured (the "Accident").
Canal issued a commercial auto liability policy to Freedom Trans Corp ("Freedom Trans") under number I-
policy
658157001-2 with effective dates of 07/22/2023 to 07/22/2024 (the "Canal Policy"). The Canal Policy provides
business auto liability coverage for covered autos subject to a combined single limit of $1,000,000 for any one
accident or loss.
Canal has been called upon to determine its coverage obligations in relation to injuries alleged to have resulted
from the Accident. Canal has determined that coverage is not available for this claim under the Canal Policy for the
reasons set forth in detail below.
The Policy
Canal issued a business auto liability policy to Freedom Trans Corp, bearing policy number I-658157001-2
Again,
with a policy term of 07/22/2023 to 07/22/2024 and with combined single liability limits of $1 million. The Accident
occurred on 08/08/2023. A specific explanation of the coverage issues, along with the supporting policy language
follows.
P.0. Box 7 Greenville, SC 29602 800.452.6911 J canalinsurance.com
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
Canal
I N S U R A N C E k
Facts and Allegations
According to the police report, the subject tractor operated by Kenneth Jacobs at the time of the Accident was a
2018 Freightliner with a vehicle identification number (VIN) of 1FUJGLDR7JLJJ7349 (the "2018 Freightliner"). The
police report further identifies the owner of the 2018 Freightliner as Shark Logistics Corp ("Shark Logistics").
Canal's investigation has revealed the following additional pertinent facts. There is a lease agreement between
Freedom Transportation Corp and Shark Logistics Corp. This lease lists the involved 2018 Freightiiner owned by
Shark Logistics and leased to Freedom Transportation Corp as the carrier. The DOT# listed for Freedom
Transportation Corp on the lease is 3901538. The DOT# for our named insured Freedom Trans Corp is 3449688.
These appear to be two similarly named, but separate business entities.
The only vehicle listed on the Carisl Policy is a 2018 Construction Kenworth, VIN 1XKD49XXJJ185446.
Please note that the facts stated above are based on materials that have been provided to Canal for review.
If you contend that the facts are stated incorrectly or are missing important items, please advise us at once
so we can evaluate the claim appropriately.
COVERAGE POSITION
The Canal Policy is subject to the business auto coverage form (CA 00 01 11 20) which provides, in relevant part,
as follows:
SECTION I - COVERED AUTOS
"autos" "autos"
Item Two of the Declarations shows the that are covered for each
"autos"
of your coverages. The following numerical symbols describe the that may
be covered "autos". The symbols entered next to a coverage on the Declarations
"autos"
designate the only that are covered "autos".
The Policy's Business Auto Declarations (IA 01 CW 1115) notes the following symbol for covered "autos": 7.
"autos"
The Policy's Business Auto Coverage Form contains the following description for Symbol 7.and other that
"autos"
may be considered covered under the Policy:
A. Description of Covered Auto Designation Symbols
"autos"
7 8pedfically Only those described in Item Three of the Declarations for which a
"trailers"
Described premium chargeis shown (and for Covered Autos Liability Coverage any
"Autos"
youdon't own while attached to any power unit described in Item Three).
B. Owned Autos
1. If Symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in Item Two of the
Declarations (. . .)
2
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
Canal
I N S U R A N C E .
2. But if Symbol 7 is entered next to a coverage in Item Two of the Declarations, an
"auto" "auto"
you acquire after the policy period begins will be a covered for that
coverage only if:
"autos"
a. We already cover all that you own for that coverage or it replaces an
"auto"
you previously owned that had that coverage; and
b. You tell us within 30 days after you acquire it that you want us to cover it for
that coverage.
C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos
If Covered Autos Liability Coverage is provided by this Coverage Form, the
"autos"
following types of vehicles are also covered for Covered Autos Liability
Coverage:
E A E E E5M ME E ME A M AM A E MMA EE EM EM 555 AM ME E E AME ME E EM A ME EM g
"auto"
3. Any you do not own while used with the permission of its owner as a
"auto"
temporary substitute for a covered you own that is out of service because
of its:
a. Breakdown;
b.Repair;
c. Servicing;
d."Loss"; or
e. Destruction.
The Policy's Insuring Agreement, located in the Business Auto Coverage Form, further provides, in pertinent part,
as follows:
SECTION II - COVERERD AUTOS LIABILITY COVERAGE
A. Coverage
"insured"
We will pay all sums an legally must pay as damages because of "bodily
injury" damage"
or "property to which this insurance applies, caused by an
"accident"
and resulting from the ownership, maintenance or use of a covered
"auto".
"insured"
We will also pay all sums an legally must pay as a "covered pollution cost
expense" "accident"
or to which this insurance applies, caused by an and resulting
"autos"
from the ownership, maintenance or use of covered However, we will only
expense" injury"
pay for the "covered pollution cost or if there is either "bodily or
damage"
"property to which this insurance applies that is caused by the same
"accident".
"insured" "suit"
We have the duty to defend
right and any against a asking for such
damages or a "covered pollution cost or expense". However, we have no duty to
"insured" "suit" injury"
defend any against a seeking damages for "bodily or
damage" expense"
"property or a "covered pollution cost or to which this insurance
"suit"
does not apply. We may investigate and settle any claim or as we consider
appropriate. Our duty to defend or settle ends when the Covered Autos Liability
Coverage Limit of Insurance has been exhausted by payments of judgments or
settlements.
A MM M E E A n A A E A A E A E MWA MME MA ME n MMME E E E E E E E MMA E E E A AE E E E El
SECTION V - DEFINITIONS
3
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
Canalk
I N S U R A N C E
"Accident"
A. includes continuous or repeated exposure to the same
injury"
conditions resulting in "bodily or "property damage".
injury"
C. "Bodily means bodily injury, sickness or disease sustained by a
person, including death resulting from any of these.
"Loss"
J. means direct and accidental loss or damage.
"insureds"
The Canal Policy only provides business auto liability coverage to for damages resulting from the
"autos"
ownership, maintenance, or use of a covered "auto". In turn, the Canal Policy defines the that qualify as
"autos"
covered under Symbol 7.
"auto"
Pursuant to Symbol 7, a vehicle qualifies as a covered for liability coverage only if it is a specifically described
auto, a newly acquired auto or a lemporary substitute auto. In order 0 qualify as a specifically described auto, the
vehicle must be.scheduled on the Canal Policy. To qualify as a newly acquired auto: (a) the vehicle must replace
a previously-covered auto, or Canal must insure all autos owned by Freedom Trans Corp., and (b) the vehicle must
be requested to be added to the Canal Policy within thirty (30) days of its acquisition. To qualify as a temporary
substitute auto, the auto must be a non-owned temporary substitute for an owned vehicle that is out of service
because of its breakdown, repair, servicing, loss or destruction.
Here, based on the information learned during canal's claim investigation, the 2018 Freightliner (VIN
"auto"
1FUJGLDR7JLJJ7349) was not a covered under the Canal Policy at the time of the Accident. The 2018
"7"
Freightliner does not qualify under symbol because it is not scheduled in the declarations page. Further, the
2018 Freightliner does not qualify as a newly acquired auto or temporary substitute auto under the above-quoted
policy language because it was never reported to Canal, and there is no evidence it was being used as a non-
owned temporary substitute for a covered auto that was out of service.
Conclusion
For the reasons set forth in detail above, Canal has concluded that there is no coverage for the subject Accident or
claim because it does not result from the ownership, maintenance, or use of covered "auto".
The information contained in this correspondence is based on information provided to date and is not intended to
be an exhaustive discussion of all policy language that might potentially apply to limit or eliminate coverage under
the Policy. If you receive additional information or facts that may change our decision regarding coverage, you must
immediately clarify and provide the same for our consideration and allow us the opportunity to reconsider our
position. Also, if you are served with any demands, lawsuits, or other legal papers related to the Accident, please
forward them to us immediately as they could affect our analysis of coverage. Canal will require strict compliance
with the policy conditions.
In stating this disclaimer, Canal does not intend to waive any of its rights or defenses under the Canal Policy or
applicable law, either known or unknown at this time. Additionally, this is not meant to be an all-inclusive
restatement of the Canal Policy provisions, terms, and exclusions, but a recital of the specific parts of coverage
directly affecting this claim. Nothing in this letter should be construed as an admission of liability for any portion of
the subject claim. All of Canal's rights, remedies or defenses, both legal and equitable, remain expressly reserved.
4
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023
NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024
Canal
I N S U R A N C E
It is recommended that you report this claim into any insurance carrier that may provide coverage for this loss and/or
the involved vehicles. You may also desire to seek representation by personal counsel, at your own expense, to
protect your interests with respect to the claim.
If you feel this claim has been wrongfully denied, or if you have concerns regarding the handling of this claim, you
may also contact:
Pennsylvania Department of Insurance
1326 Strawberry Square
Harrisburg, PA 17120
Phone: 877-881-6388
Finally, this declination is based on the information in Canal's possession at this time. 5 is vital that you let
Canal know if vou receive suit papers regarding this claim. IF YOU OR THE DRIVER ARE SERVED W
Preview
FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 EXHIBIT "B" FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 Canal I N S U R A N C E November 29, 2023 FREEDOM TRANS CORP ATTN. BALWINDER SINGH 402 NOTTINGHAM LN COLLEGEVILLE, PA 19426 KENNETH JACOBS 1 W FARMS SQUARE PLAZA APT. 2 BRONX, NY 10462 CERTIFIED & REGULAR U.S. MAIL - RETURN SERVICE REQUESTED Insured: Freedom Trans Corp. Driver: Kenneth Jacobs Claimant: Josue Ventura Claim Number: L544048 Date of Loss: August 8, 2023 COVERAGE DECISION Dear Mr. Singh and Mr. Jacobs: This letter is being sent to you regarding the above referenced claim which was reported to Canal Insurance ("Canal") on September 14, 2023. This claim and lawsuit arise out of an incident in which it is alleged Company that a truck driven by Kenneth Jacobs rolled into a parked vehicle. Josue Ventura was apparently inside the vehicle that was hit and was injured (the "Accident"). Canal issued a commercial auto liability policy to Freedom Trans Corp ("Freedom Trans") under number I- policy 658157001-2 with effective dates of 07/22/2023 to 07/22/2024 (the "Canal Policy"). The Canal Policy provides business auto liability coverage for covered autos subject to a combined single limit of $1,000,000 for any one accident or loss. Canal has been called upon to determine its coverage obligations in relation to injuries alleged to have resulted from the Accident. Canal has determined that coverage is not available for this claim under the Canal Policy for the reasons set forth in detail below. The Policy Canal issued a business auto liability policy to Freedom Trans Corp, bearing policy number I-658157001-2 Again, with a policy term of 07/22/2023 to 07/22/2024 and with combined single liability limits of $1 million. The Accident occurred on 08/08/2023. A specific explanation of the coverage issues, along with the supporting policy language follows. P.0. Box 7 Greenville, SC 29602 800.452.6911 J canalinsurance.com FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 Canal I N S U R A N C E k Facts and Allegations According to the police report, the subject tractor operated by Kenneth Jacobs at the time of the Accident was a 2018 Freightliner with a vehicle identification number (VIN) of 1FUJGLDR7JLJJ7349 (the "2018 Freightliner"). The police report further identifies the owner of the 2018 Freightliner as Shark Logistics Corp ("Shark Logistics"). Canal's investigation has revealed the following additional pertinent facts. There is a lease agreement between Freedom Transportation Corp and Shark Logistics Corp. This lease lists the involved 2018 Freightiiner owned by Shark Logistics and leased to Freedom Transportation Corp as the carrier. The DOT# listed for Freedom Transportation Corp on the lease is 3901538. The DOT# for our named insured Freedom Trans Corp is 3449688. These appear to be two similarly named, but separate business entities. The only vehicle listed on the Carisl Policy is a 2018 Construction Kenworth, VIN 1XKD49XXJJ185446. Please note that the facts stated above are based on materials that have been provided to Canal for review. If you contend that the facts are stated incorrectly or are missing important items, please advise us at once so we can evaluate the claim appropriately. COVERAGE POSITION The Canal Policy is subject to the business auto coverage form (CA 00 01 11 20) which provides, in relevant part, as follows: SECTION I - COVERED AUTOS "autos" "autos" Item Two of the Declarations shows the that are covered for each "autos" of your coverages. The following numerical symbols describe the that may be covered "autos". The symbols entered next to a coverage on the Declarations "autos" designate the only that are covered "autos". The Policy's Business Auto Declarations (IA 01 CW 1115) notes the following symbol for covered "autos": 7. "autos" The Policy's Business Auto Coverage Form contains the following description for Symbol 7.and other that "autos" may be considered covered under the Policy: A. Description of Covered Auto Designation Symbols "autos" 7 8pedfically Only those described in Item Three of the Declarations for which a "trailers" Described premium chargeis shown (and for Covered Autos Liability Coverage any "Autos" youdon't own while attached to any power unit described in Item Three). B. Owned Autos 1. If Symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in Item Two of the Declarations (. . .) 2 FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 Canal I N S U R A N C E . 2. But if Symbol 7 is entered next to a coverage in Item Two of the Declarations, an "auto" "auto" you acquire after the policy period begins will be a covered for that coverage only if: "autos" a. We already cover all that you own for that coverage or it replaces an "auto" you previously owned that had that coverage; and b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage. C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos If Covered Autos Liability Coverage is provided by this Coverage Form, the "autos" following types of vehicles are also covered for Covered Autos Liability Coverage: E A E E E5M ME E ME A M AM A E MMA EE EM EM 555 AM ME E E AME ME E EM A ME EM g "auto" 3. Any you do not own while used with the permission of its owner as a "auto" temporary substitute for a covered you own that is out of service because of its: a. Breakdown; b.Repair; c. Servicing; d."Loss"; or e. Destruction. The Policy's Insuring Agreement, located in the Business Auto Coverage Form, further provides, in pertinent part, as follows: SECTION II - COVERERD AUTOS LIABILITY COVERAGE A. Coverage "insured" We will pay all sums an legally must pay as damages because of "bodily injury" damage" or "property to which this insurance applies, caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto". "insured" We will also pay all sums an legally must pay as a "covered pollution cost expense" "accident" or to which this insurance applies, caused by an and resulting "autos" from the ownership, maintenance or use of covered However, we will only expense" injury" pay for the "covered pollution cost or if there is either "bodily or damage" "property to which this insurance applies that is caused by the same "accident". "insured" "suit" We have the duty to defend right and any against a asking for such damages or a "covered pollution cost or expense". However, we have no duty to "insured" "suit" injury" defend any against a seeking damages for "bodily or damage" expense" "property or a "covered pollution cost or to which this insurance "suit" does not apply. We may investigate and settle any claim or as we consider appropriate. Our duty to defend or settle ends when the Covered Autos Liability Coverage Limit of Insurance has been exhausted by payments of judgments or settlements. A MM M E E A n A A E A A E A E MWA MME MA ME n MMME E E E E E E E MMA E E E A AE E E E El SECTION V - DEFINITIONS 3 FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 Canalk I N S U R A N C E "Accident" A. includes continuous or repeated exposure to the same injury" conditions resulting in "bodily or "property damage". injury" C. "Bodily means bodily injury, sickness or disease sustained by a person, including death resulting from any of these. "Loss" J. means direct and accidental loss or damage. "insureds" The Canal Policy only provides business auto liability coverage to for damages resulting from the "autos" ownership, maintenance, or use of a covered "auto". In turn, the Canal Policy defines the that qualify as "autos" covered under Symbol 7. "auto" Pursuant to Symbol 7, a vehicle qualifies as a covered for liability coverage only if it is a specifically described auto, a newly acquired auto or a lemporary substitute auto. In order 0 qualify as a specifically described auto, the vehicle must be.scheduled on the Canal Policy. To qualify as a newly acquired auto: (a) the vehicle must replace a previously-covered auto, or Canal must insure all autos owned by Freedom Trans Corp., and (b) the vehicle must be requested to be added to the Canal Policy within thirty (30) days of its acquisition. To qualify as a temporary substitute auto, the auto must be a non-owned temporary substitute for an owned vehicle that is out of service because of its breakdown, repair, servicing, loss or destruction. Here, based on the information learned during canal's claim investigation, the 2018 Freightliner (VIN "auto" 1FUJGLDR7JLJJ7349) was not a covered under the Canal Policy at the time of the Accident. The 2018 "7" Freightliner does not qualify under symbol because it is not scheduled in the declarations page. Further, the 2018 Freightliner does not qualify as a newly acquired auto or temporary substitute auto under the above-quoted policy language because it was never reported to Canal, and there is no evidence it was being used as a non- owned temporary substitute for a covered auto that was out of service. Conclusion For the reasons set forth in detail above, Canal has concluded that there is no coverage for the subject Accident or claim because it does not result from the ownership, maintenance, or use of covered "auto". The information contained in this correspondence is based on information provided to date and is not intended to be an exhaustive discussion of all policy language that might potentially apply to limit or eliminate coverage under the Policy. If you receive additional information or facts that may change our decision regarding coverage, you must immediately clarify and provide the same for our consideration and allow us the opportunity to reconsider our position. Also, if you are served with any demands, lawsuits, or other legal papers related to the Accident, please forward them to us immediately as they could affect our analysis of coverage. Canal will require strict compliance with the policy conditions. In stating this disclaimer, Canal does not intend to waive any of its rights or defenses under the Canal Policy or applicable law, either known or unknown at this time. Additionally, this is not meant to be an all-inclusive restatement of the Canal Policy provisions, terms, and exclusions, but a recital of the specific parts of coverage directly affecting this claim. Nothing in this letter should be construed as an admission of liability for any portion of the subject claim. All of Canal's rights, remedies or defenses, both legal and equitable, remain expressly reserved. 4 FILED: SUFFOLK COUNTY CLERK 01/16/2024 01:31 PM INDEX NO. 631416/2023 NYSCEF DOC. NO. 13 RECEIVED NYSCEF: 01/16/2024 Canal I N S U R A N C E It is recommended that you report this claim into any insurance carrier that may provide coverage for this loss and/or the involved vehicles. You may also desire to seek representation by personal counsel, at your own expense, to protect your interests with respect to the claim. If you feel this claim has been wrongfully denied, or if you have concerns regarding the handling of this claim, you may also contact: Pennsylvania Department of Insurance 1326 Strawberry Square Harrisburg, PA 17120 Phone: 877-881-6388 Finally, this declination is based on the information in Canal's possession at this time. 5 is vital that you let Canal know if vou receive suit papers regarding this claim. IF YOU OR THE DRIVER ARE SERVED W