Insurance Law

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Excess Carrier Could Not Seek Reimbursement from the Primary Insurer Based On Its Rejection of a Claimant’s Settlement Offer Within Its Primary Limits Because There Was Not a Final Excess Judgment
Posted on 18 Feb 2014 by Troutman Sanders

In RSUI Indemnity Co. v. Discover P&C Insurance Co [ enhanced version available to subscribers ], the primary insurer issued the insured a commercial automobile liability policy with a $1 million limit per-occurrence and in the aggregate... Read More

California Court Holds § 998 Offer Exceeding Policy Limits Made In Good Faith
Posted on 25 Oct 2013 by Brian Margolies

In its recent decision in Aguilar v. Gostischef , 2013 Cal.App. LEXIS 816 (Cal. App. 2d Dist. Oct. 11, 2013) [ enhanced version available to subscribers ], a California appellate court had occasion to consider whether a claimant’s statutory... Read More

Washington Appellate Court Enforces Strict Exhaustion Language in Excess Directors and Officers Liability Policies
Posted on 2 Jan 2014 by Troutman Sanders

By Leslie S. Ahari and Gabriela A. Richeimer The State of Washington has joined the growing list of jurisdictions that have enforced strict exhaustion language in an excess policy’s insuring agreement in favor of the excess carrier in situations... Read More

Reed Smith on The Insurance Company’s Settlement of Tort Claims: An Analysis of In Re East 51st St. Crane Collapse Litigation
Posted on 12 Jan 2011 by LexisNexis Insurance Law Newsroom Staff

By John Berringer and Jennifer Katz, Reed Smith LLP In In Re East 51st St. Crane Collapse Litigation , the New York Supreme Court permitted the primary insurance company to enter into a settlement which clearly was not “in the best interests... Read More

What Could Have Been: Court Holds That Policy With Eroding Limits Does Not Violate Public Policy
Posted on 31 Aug 2015 by Randy J. Maniloff

Westport Insurance Company v. Mylonas, No. 14-5760 (E.D. Pa. July 15, 2015), [subscribers can access an enhanced version of this opinion: | Lexis Advance ], is one of those cases involving a very interesting issue -- but that will likely go... Read More

Insurer's Suit Against Insured's Defense Counsel Barred by Insured's Settlement
Posted on 14 Dec 2011 by William T. Barker

By William T. Barker, Partner, SNR Denton In American National Property & Casualty Co. v. Ensz & Jester, P.C., American National sued the defense counsel it had retained to defend its insured for malpractice. Allegedly that malpractice resulted... Read More

Mississippi Court Holds Defense Costs Outside of Limits
Posted on 2 Nov 2015 by Brian Margolies

In its recent decision in Federal Ins. Co. v. Singing River Health System , 2015 U.S. Dist. LEXIS 134814 (S.D. Miss. October 2, 2015), [subscribers can access an enhanced version of this opinion: | Lexis Advance ], the United States District... Read More

Prejudgment Interest: It’s Not Discretionary! Insurers Should Pay Up
Posted on 23 Jan 2014 by Neal Gerber Eisenberg

By Jill Berkeley , Partner, Neal, Gerber & Eisenberg LLP Who has not heard in the first round of mediation, insurers say, “prejudgment interest and extracontractual damages are off the table.” That’s just wrong. In the last... Read More

Reed Smith LLP Policyholder Alert: Zeig Reconsidered?
Posted on 22 Aug 2011 by John Berringer and Michael DiCanio

By John Berringer and Michael DiCanio, Attorneys, Reed Smith LLP While it has long been the general rule in New York and other jurisdictions that a policyholder's settlement with a primary insurer for less than full policy limits can nevertheless... Read More

Federal Court Refuses to Confuse Issue of Insurance Limits – Declaratory Relief Action Without Insured Fails
Posted on 5 Oct 2015 by Barry Zalma

Insurance coverage disputes can be resolved by the seeking a court’s order in a declaratory relief action. Both state and federal courts have procedures available for resolving such disputes. However, to provide a useful declaration it is necessary... Read More

Wall Of Confusion: GEICO General Insurance Company v. Bottini And Its Ill-Begotten Progeny
Posted on 16 Oct 2014 by Mealeys

By Julius F. "Rick" Parker III A three-judge panel of Florida's Second District Court of Appeal has released what, on its face, appears to be a relatively innocuous opinion in Geico General Insurance Company v. Bottini.1 The Bottini appeal... Read More

Separating Fact From Fiction: Strategies For Contesting The Excess Consent Judgment
Posted on 10 Dec 2013 by LexisNexis Insurance Law Newsroom Staff

By Brian Webb I. Introduction Few legal maneuvers generate greater skepticism–among courts and insurers–than the excess consent judgment, an increasingly common settlement device used in liability cases. An excess consent judgment... Read More

Insured Entitled To Independent Counsel Even When Being Defended WITHOUT A Reservation Of Rights (Court Rejects ALI Draft Principle)
Posted on 20 May 2014 by Randy J. Maniloff

When it comes to an insured’s right to retain independent counsel, when being defended by its insurer under a reservation of rights, there are some general rules of the road. In a few states a defense provided under a reservation of rights automatically... Read More

Treatment of Insurance Proceeds and the Stafford Act’s Public Assistance Grant Program
Posted on 4 Jan 2012 by LexisNexis Insurance Law Newsroom Staff

By Brent W. Huber and Susan Charles, Partners, Ice Miller LLP In their article appearing in the November/December 2011 issue of Coverage , "Treatment of Insurance Proceeds and the Stafford Act's Public Assistance Grant Program," Brent... Read More

Insured Not Required to Plead Existence of a Within-Limits Settlement Demand in Order to State a Claim for Bad Faith Failure to Settle
Posted on 11 Dec 2015 by Troutman Sanders

In Aspen Specialty Ins. Co. v. Willis Allen Real Estate , the district court denied a liability carrier’s motion to dismiss an insured’s bad faith claim for failure to effectuate a settlement within policy limits despite the fact that the... Read More