LexisNexis® Legal Newsroom
Issues Confronting Insureds and Excess Insurers in Large-Scale, Long-Tail Claims

A plenary session of the ICLC conference on March 5, 2010 was devoted to the increasingly complex set of issues confronting insureds and excess insurers in large-scale, long-tail claims. It was entitled, "Knockin' on Heaven's Door: Perspectives on Litigation and Negotiation of High-Damage...

On the Importance of Reading the Fine Print in Excess D&O Policies

Peter M. Gillon, Partner, Pillsbury Winthrop Shaw Pittman LLP A recent ruling by the United States Court of Appeals for the Second Circuit, affirming the decision of District Court Judge Gerard Lynch in XL Specialty Ins. Co. v. Agoglia , 2009 U.S. Dist. LEXIS 36601 (S.D.N.Y. Apr. 30, 2009), provides...

Mealey's Reports: Excess insurers say no coverage is afforded for gulf oil spill

HOUSTON – (Mealey’s) Transocean Ltd.’s excess insurers filed a complaint for declaratory judgment Friday in a Texas federal court, seeking a ruling that no additional insured coverage is owed to BP plc. with respect to pollution claims arising out of the explosion of BP’s oil...

Expect Gulf Oil Slick Claims to be Extensive and Impact Multiple Lines of Business

By Marc Lanzkowsky, Founder and Principal, Lanzko Consulting, Inc. As the losses in the gulf continue to rise, the true claims impact has yet to unfold I don’t think the insurance industry has felt the true brunt of the horrific events of the April 20 blast on the Deepwater Horizon...

Excess Insurance and Umbrella Coverage – New Appleman on Insurance Law Library Edition, Chapter 24

By Douglas R. Richmond, Senior Vice President, Aon Risk Services Businesses and individuals seeking liability protection have varying insurance coverage needs. One concern is the amount of coverage required to shield against potential losses. Some insureds may see the breadth of coverage as a concern...

Directors and Officers Insurance – New Appleman on Insurance Law Library Edition, Chapter 26

Dan A. Bailey and Timothy W. Burns This chapter begins by discussing the enormous success of directors and officers ("D&O") insurance in protecting the personal assets of directors and officers and particularly outside corporate directors. As Section 26.01 explains, despite thousands...

SNR Denton on Lease Crutcher Lewis WA, LLC v. National Union Fire Insurance Co.: Failure To Honor the Made-Whole Rule Can Be Bad Faith

By William T. Barker, Partner, SNR Denton An insurer normally has subrogation or reimbursement rights when the losses it has paid are recoverable from a third party, but typically these rights are qualified by a requirement that its insured must be made whole before the insurer is entitled to any...

New York’s Highest Court Perplexcess Insurers

Asbestos - But More - If the decision can make it here, it can make it anywhere Randy J. Maniloff, White and Williams, LLP Come on, isn't it annoying that New York's highest court is called the Court of Appeals of New York and not the New York Supreme Court. Because it's not, you...

Reed Smith LLP Policyholder Alert: Zeig Reconsidered?

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 trigger excess coverage, as long as the loss or...

LexisNexis® Insurance Law Community Podcast: Tim Burns on D&O Insurance Disputes and Arbitration

On this edition, Timothy Burns of Perkins Coie LLP discusses D&O policies and arbitration, consolidation issues and multiple insurers, the rise in disputes over defense costs and special issues involving excess insurers and consent. Mr. Burns is the author of the Directors and Officers Insurance...

A Primer for Managing Risks

(Lexis.com subscribers may access the cases below by clicking on the links) By Verne A. Pedro, Special Counsel, Goldberg Segalla LLP Injured visitors, faulty construction, mold, critters, fire, natural disasters-businesses face substantial risks from a host of potentially devastating unforeseen...

SNR Denton, US, LLP on Nease v. State Farm Mutual Automobile Insurance Co.: Liability Insurer May Have Duty to Hire Counsel to Advise Insured Whether to Give Statement to Claimant’s Counsel

By William T. Barker & Ronald D. Kent, Partners, SNR Denton In Nease v. State Farm Mutual Automobile Insurance Co., an excess insurance case, State Farm promptly tendered its $25,000 limits. The claimant's attorney requested a statement regarding other possible sources of recovery. The...

Delaware Supreme Court: Insured's Payment of Defense Expenses Does Not Trigger Excess Insurer's Payment Obligations

On September 7, 2012, the Delaware Supreme Court, applying California law, held that Intel's excess insurer's defense obligations were not triggered where Intel had settled with the underlying insurer for less than policy limits and had itself funded the defense fees above the settlement amount...

SNR Denton LLP on Great American Excess & Surplus Insurance Co. v. Quintairos, Prieto, Wood & Boyer, P.A.: Excess Insurer Can Sue Appointed Defense Counsel for Malpractice

By William T. Barker, Partner, SNR Denton LLP In Great American Excess & Surplus Insurance Co. v. Quintairos, Prieto, Wood & Boyer, P.A., the Mississippi Supreme Court adopted the opinion of a divided Mississippi Court of Appeals holding (on an issue that has divided other jurisdictions...

Ohio Federal Court: Insurers’ Exposure For Construction Projects: A New Frontier?

While much debate has centered around coverage for construction defects, the parties have at least known where the claims are coming from - a structure is set out to be built, something doesn't go right and repairs need to be made. But in IMG Worldwide, Inc. v. Westchester Fire Ins. Co., No. 11-1594...

Perkins Coie LLP on Second Circuit Decision Not Precluding Excess Insurance When Settlement Is Below Policy Limits

The commentary "Perkins Coie LLP on Second Circuit Requires Payment of Underlying Losses to Trigger Excess Coverage Based on Policy Provisions," by Les Brown and Norton Cutler, analyzes the much discussed recent decision of Ali v. Fed. Ins. Co ., 2013 U.S. App. LEXIS 11384 (2d Cir. June 4,...

Washington Appellate Court Enforces Strict Exhaustion Language in Excess Directors and Officers Liability Policies

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 where the insured has settled with the underlying...

The Eastern District of California Holds That A Carrier May Have An Affirmative Duty To Attempt to Settle A Claim Against The Insured When It Is Presented With A Reasonable Settlement Opportunity

Travelers Indem. of Conn. v. Arch Specialty Ins. Co. , 2013 U.S. Dist. LEXIS 169453 (E.D. Cal. Nov. 26, 2013) [ enhanced version available to lexis.com subscribers ] In Travelers , the district court concluded that the carrier must act in good faith in response to reasonable opportunities to settle...

D&O Insurance: Excess Insurance Not Triggered Due to Insolvency of Underlying Insurer and Due to Insufficient Loss

In a long and convoluted opinion befitting the long and convoluted case in which it was entered, Judge David Grine of the Pennsylvania (Centre Country) Court of Common Pleas, applying Pennsylvania law, entered summary judgment for an excess D&O insurer, holding that the excess insurer’s payment...