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The Third Circuit Finds Defense Owed for Potentially Covered Advertising Injury

On January 5, 2022, the Third Circuit confirmed that the “potentially covered” standard for the duty to defend is far broader than the “actually covered” standard for the duty to indemnify, also confirming that the duty to...more

Observations on Erie Insurance Exchange v. Moore: A Misapplication of Precedent

The duty to defend is a critical threshold determination in all liability coverage disputes. The Pennsylvania Supreme Court has provided a clear and consistent directive on the issue: facts alleged in the complaint control...more

Pennsylvania High Court Rules First Manifestation Trigger Applies to Property Damage Claims

The Pennsylvania Supreme Court in Pennsylvania Nat’l Mut. Cas. Ins. Co. v. St. John, et al., 2014 WL 7088712 (December 15, 2014), has affirmed that a first manifestation trigger applies to property damage claims under a CGL...more

Connecticut High Court Clarifies Aggregate Limit and Number of SIRs Under Professional Liability Policy

On January 28, 2014, the Supreme Court of Connecticut, in Lexington Ins. Co. v. Lexington Healthcare Group, Inc., 311 Conn. 29, addressed three issues that define the extent of coverage available under a medical professional...more

Pennsylvania District Court Considers Bad Faith Set-up as Affirmative Defense

As a matter of first impression under Pennsylvania law, the court in Shannon v. New York Central Mutual Insurance Company, No. 13-cv-1432 (M.D. Pa. Nov. 20, 2013) denied a motion to strike an insurer’s defense of “bad faith...more

Pennsylvania Superior Court Maps a New Path for Insureds and Insurers for Potentially Covered Claims

On July 10, 2013, a majority of a three-judge panel of the Superior Court of Pennsylvania cut a new path for insureds and insurers with respect to defense under reservations of rights. See The Babcock & Wilcox Company, et al....more

Sexual Misconduct “During” Law Enforcement Activities Does Not “Arise Out of” Law Enforcement Activities

In a recent case before the U.S. District Court for the Central District of Illinois, the court held that jail employees were not entitled to coverage for sexual molestation of an inmate under the law enforcement coverage...more

Second Circuit Restricts Zeig to First-Party Context, Requiring Actual Payment of Underlying Limits

The U.S. Court of Appeals for the 2nd Circuit recently eliminated the foundation for policyholders’ arguments in favor of “functional exhaustion.” In Ali v. Federal Insurance Co., No. 11-5000-cv (2d Cir. June 4, 2013), the...more

Is Honesty Always the Best Policy? Illinois Appellate Court Holds Attorney’s Ethical Obligations Trump Professional Liability...

In a case of first impression, the Illinois Appellate Court considered whether a professional liability insurer can deny a defense to its insured, an attorney who admits he erred in providing legal services. Ill. State Bar...more

New York Court Enforces Legal Malpractice Policy’s Business Pursuit and Business Enterprise Exclusions

In Abrams, Fensterman, Fensterman, Eisman, Greenberg, Formato & Eininger, LLP v. Underwriters of Lloyds, London, no. CV11-665, 2013 U.S. Dist. LEXIS 1204 (E.D. N.Y. January 2, 2013), the District Court for the Eastern...more

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