News & Analysis as of

Excess Policies Insurance Litigation Insurance Industry

Presley & Presley

Written Settlement Demand Not Necessary

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With increasing frequency, insurers are challenging the sufficiency and clarity of settlement demands they failed to previously accept. The insurer’s challenges can take many forms but most focus on a demand not being written...more

Presley & Presley

Carrier’s Failures Create Coverage

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Insurance laws may vary slightly between jurisdictions but major principles are nearly uniform. These include requirements that an insurer should draft clear and unambiguous exclusions and should identify and fully inform the...more

DRI

The Jenga Effect: Avoiding Traps in Policy Limit Demands & Balancing Liability Excess Insurance Towers

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In the intricate landscape of catastrophic trucking cases and the interplay of multiple layers of liability insurance can resemble a precarious game of Jenga. Each move carries the potential to destabilize the structure,...more

Sheppard Mullin Richter & Hampton LLP

The California Supreme Court Confirms Vertical Exhaustion Applies for First-Layer Excess Insurers

In Truck Ins. Exch. v. Kaiser Cement, 321 Cal. Rptr. 3d 761, 549 P.3d 781 (2024), the California Supreme Court answered the question left open by Montrose Chem. Corp. v. Superior Ct., 9 Cal. 5th 215 (2020) (Montrose III): for...more

Robins Kaplan LLP

A Magnifying Glass on the Notice Prejudice Standard in Massachusetts for Excess Insurers

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What happens between a primary and excess liability insurer when their mutual insured is hit with a verdict $2.15 million over the primary limit and the excess insurer was not put on notice until after the verdict? This was...more

Goldberg Segalla

[Webinar] Excess Insurance: A Basic Primer for Handling High-Value Exposures - May 16th, 12:00 pm - 1:00 pm EDT

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Join Goldberg Segalla attorneys Zachary D. Oliva and Thomas M. Wester for a free interactive webinar as they discuss the duties and obligations of excess insurers when presented with high-value claims....more

Morris, Manning & Martin, LLP

Excess Insurer’s Policy Conditions Shield It from a Potential $10 Million Coverage Liability

Excess insurers facing claims should heavily scrutinize their policies for conditions that may be unsatisfactory —even if seemingly immaterial— because they can provide a complete defense to coverage. In a recent case, an...more

Lowenstein Sandler LLP

Sometimes You Have To Sweat The Small Stuff: Technicality Renders $10M Excess Policy Valueless

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Hosts Lynda A. Bennett and Eric Jesse of Lowenstein Sandler discuss how to access a tower of insurance coverage in light of the recent decision in Pharmacia Corporation v. Arch Specialty Insurance Company, where an...more

Wiley Rein LLP

Availability of Other Collectable Insurance Excuses Excess Insurer’s Duty to Defend

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The United States Court of Appeals for the Fourth Circuit, applying South Carolina law, has ruled that an insurer had no duty to defend an insured in a defamation action because its policy provided excess coverage, even where...more

Lowenstein Sandler LLP

Sometimes You Have to Sweat the Small Stuff: Technicality Renders $10M Excess Policy Valueless

For nearly 100 years, courts across the country have followed the established majority view that an excess insurer may not avoid its coverage obligation by imposing technical requirements on the manner in which underlying...more

Wiley Rein LLP

Third Circuit Holds that Insured Must Satisfy All Conditions Precedent in Excess Policy to Trigger Coverage

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The United States Court of Appeals for the Third Circuit, applying New Jersey law, has affirmed that an excess policy did not provide coverage when an insured could not satisfy an express condition precedent to coverage...more

DRI

[Event] Insurance Coverage and Practice Symposium - November 29th - December 1st, New York, NY

DRI on

DRI's Insurance Coverage and Practice Symposium is the flagship educational and networking program for insurance executives, claims professionals, and outside counsel who specialize in insurance coverage. This year's...more

Lowenstein Sandler LLP

Avoiding the Bait and Switch: When Excess Insurers Don’t Follow Primary Insurers’ Acceptance of Coverage

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Today on “Don't Take No for an Answer,” co-hosts Lynda A. Bennett and Eric Jesse of the Insurance Recovery Group at Lowenstein Sandler discuss how to deal with excess insurers who refuse to follow a primary insurer’s...more

Wiley Rein LLP

Prior or Pending Litigation Exclusions Bar Coverage for Contempt Motion Filed in Civil Action Commenced Before Prior or Pending...

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The U.S. District Court for the Northern District of Illinois, applying Illinois and Nevada law, has held that prior or pending litigation exclusions bar coverage for a contempt motion filed in a civil action commenced before...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - November 2022

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Court Finds That Defense Documents Must Be Produced Because Placed “At Issue” by Late Notice- In this declaratory judgment action, American Empire Surplus Lines Insurance Company sought insurance coverage on behalf of its...more

Carlton Fields

New York Court Finds the Term “Exhaustion” in Excess Policy Was Ambiguous, Rules That Full Limits of Underlying Insurance Need Not...

Carlton Fields on

Fireman’s Fund Insurance Co. sued OneBeacon Insurance Co. for breach of a facultative reinsurance certificate. Fireman’s Fund settled claims with its insured and allocated a portion of the settlement to a Fireman’s Fund...more

Morris James LLP

Superior Court Reinforces Established Delaware Insurance Coverage Law that Settlement of a Claim for Less than Policy Limits...

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Pfizer, Inc. v. U.S. Specialty Insurance Company, C.A. No. N18C-01-310 PRW CCLD (Del. Super. Aug. 28, 2020) - On cross-motions for summary judgment in a director and officer insurance coverage dispute, the Superior Court...more

Lowenstein Sandler LLP

Ninth Circuit ‘Excess Insurer’ Ruling A Positive Step In Insurance Law For Policyholders

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Policyholders purchase excess coverage with the reasonable expectation that they will not face a series of different coverage positions from multiple layers of insurers when seeking payment for claims, but that is not always...more

Haight Brown & Bonesteel LLP

Appeals Court Rules that Vertical and Not Horizontal Exhaustion Applies to Primary and First-Layer Excess Insurance

In Santa Fe Braun v. Ins. Co. of North America (No. A151428, filed 7/13/20), a California appeals court relied on Montrose Chemical Corp. of California v. Superior Court (2020) 9 Cal.5th 215 (Montrose III), to hold that...more

Pillsbury Winthrop Shaw Pittman LLP

California Supreme Court Dumps Excess Insurers’ Horizontal Exhaustion Argument

In a long-running environmental case, the state’s high court rejects insurers’ theory of so-called horizontal exhaustion. California Supreme Court hands policyholders a victory in latest Montrose case and upholds...more

White and Williams LLP

California Supreme Court Adopts “Vertical Exhaustion” in the Long-Storied Montrose Environmental Coverage Litigation

On April 6, 2020, the California Supreme Court issued a decision that held a policyholder is entitled to access available excess coverage under any excess policy once it has exhausted directly underlying excess policies for...more

Bradley Arant Boult Cummings LLP

Equitable Subrogation: A Useful Tool for Your Excess Insurer When Your Primary Insurer Refuses to Settle Within its Limits

Every policyholder will likely face a scenario where its primary insurer refuses a settlement offer within limits. The primary insurer is potentially liable for that excess verdict if it acted in bad faith by refusing to...more

Bradley Arant Boult Cummings LLP

Insurers Beware: One Insurer’s Settlement Can Support a Bad Faith Failure-to-Settle Claim Against a Nonsettling Insurer

An insurer defending a claim against an insured that could exceed policy limits has a good faith obligation to settle the claim if possible. Failure to do so puts a nonsettling insurer at grave risk. An Eleventh Circuit...more

Blank Rome LLP

Case Review: Seventh Circuit Repudiates Insurer’s Attempt to Sell Illusory Coverage to Policyholder

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Last week, the Seventh Circuit had occasion to consider the scope of a contractual liability exclusion in the context of professional liability coverage. In Crum & Forster Specialty Ins. Co. v. DVO, Inc., No. 18-2571, 2019 WL...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Litigating Through Layers of Insurance

A business concedes that it made a mistake, but pleads for mercy with the jury and asks for a reasonable amount of damages. A jury ultimately awards $6 million. There are several insurance policies involved. Who is left...more

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