Interesting article about denying insurance coverage for obselete dry chemical systems.

Insurance Journal
By Kenneth J. St. Onge | July 20, 2011

A Massachusetts restaurant owner who failed to upgrade his obsolete fire suppression system was not entitled to collect insurance money after a massive fire six years ago — and must return $15,000 advanced to him by his insurer, an appeals court judge ruled.

At issue is an exclusion in a commercial lines policy issued to the French King restaurant in Erving, which required the restaurant owner to maintain a fire suppression system. The insurer — Interstate Fire & Casualty Co., a subsidiary of Fireman’s Fund — claimed that the fire-suppression system installed at the restaurant was obsolete, and therefore triggered the exclusion and did not require them to indemnify the restaurant. [More]

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