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Insurance Litigation Policy Terms Professional Liability Insurance

Wiley Rein LLP

California Court of Appeal Affirms Dismissal of Claims against Excess Insurers for Insureds’ Failure to Allege Exhaustion

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The California Court of Appeal, applying California law, has affirmed a trial court’s decision dismissing claims with prejudice against two excess carriers for the insureds’ failure to allege exhaustion of the underlying...more

Wiley Rein LLP

Georgia Federal Court Determines State Court Judgment Entered After Parties Executed a General Release Is Not “Loss”

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The United States District Court for the Middle District of Georgia, applying Georgia law, has held that an insurer had no obligation to pay a judgment against its insured in an underlying personal injury lawsuit because the...more

Wiley Rein LLP

Contractual Liability Exclusion Bars Coverage Where Lawsuit Against Insured Arises Out of a Contractual Obligation

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The Appellate Court of Maryland, applying Maryland law, has held that an insurer had no duty to defend or indemnify an insured under a professional liability policy containing a contractual liability exclusion for a lawsuit...more

Wiley Rein LLP

No Coverage for Malpractice Suit Where Insured Misrepresented Prior Knowledge of Potential Claim

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A Connecticut state court has held that an insurer owes no coverage to an insured law firm that misrepresented its prior knowledge of a potential malpractice claim to be filed by a former client. Evans & Lewis, LLC v. Nat’l...more

Wiley Rein LLP

Prior Knowledge Provision Precludes Coverage for Known Sexual Assault Under Either an Objective or Subjective Standard

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The Superior Court of New Jersey, Appellate Division, applying New Jersey law, has held that a professional liability policy afforded no coverage for a lawsuit alleging sexual misconduct because the insured had knowledge of...more

Rivkin Radler LLP

Insurance Update - April 2024

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Dominance was the theme of this year’s NCAA basketball tournament, with the UConn men’s team winning back-to-back championships and the South Carolina women’s team reclaiming the title with a perfect record. But let’s not...more

Wiley Rein LLP

Court Rejects Assumption that Wrongful Acts are Related Based on Inclusion in Single Complaint

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The United States District Court for the Central District of California, applying California law, has held that, based on the initial pleadings, it could not determine in the insurer’s favor whether wrongful acts alleged...more

Robinson+Cole Data Privacy + Security Insider

Insurer Denies Coverage Under Professional Liability Policy for Lawyer’s Email Compromise

Insurance coverage for cyberattacks can be tricky for anyone to navigate, including lawyers. To illustrate this point, a case in New Jersey caught my eye that I thought would be an interesting read for our followers who are...more

Wiley Rein LLP

Innocent Insured Provision Applies Where Insured Failed to Comply with Policy’s Reporting Provision

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Applying Georgia law, the United States Court of Appeals for the Eleventh Circuit held that a policy’s “innocent insured” provision regarding “giving of notice” applied where an innocent insured would lose coverage due to...more

Wiley Rein LLP

Insurer Has Duty to Defend Suits Seeking Only Declaratory and Injunctive Relief

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An Illinois appellate court has held that a professional liability insurer has a duty to defend suits seeking only declaratory and injunctive relief, even though the suits did not allege potentially covered damages.  MHM...more

Wiley Rein LLP

Whether Insured Misrepresented or Concealed Information in Application is a Fact Issue for Trial

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The United States District Court for the Northern District of California has held that, in an action to rescind a professional liability policy, a triable issue of fact existed regarding whether an insured misrepresented or...more

Wiley Rein LLP

No Coverage for TPA in Claim Arising from Extracontractual Exposure to Insurer

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A federal district court has ruled that a third-party administrator’s professional liability policy does not afford coverage for a claim against the TPA arising from an excess judgment against the TPA’s...more

Wiley Rein LLP

Illinois Court Holds Fee Dispute Does Not Involve Professional Services

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An Illinois appellate court has held that an underlying action involving a fee dispute was not a claim involving professional services and was not covered under a professional liability policy.  RLI Ins. Co. v. Acclaim Res....more

Wiley Rein LLP

Prior Knowledge Exclusions Apply Where Insured Received Three Letters from Potential Claimants and Issued Two Litigation Holds...

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In a case in which Wiley represented the insurer, the United States District Court for the Eastern District of Virginia, applying New York law, has held that three prior knowledge exclusions barred coverage under an...more

Wiley Rein LLP

Insurer Waived Right to Assert Policy Exclusion First Raised in Answer to Declaratory Judgment Complaint

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The U.S. District Court for the Southern District of New York, applying New York law, has concluded that an insurer waived the right to assert a policy exclusion as a coverage defense in a declaratory judgment action after...more

Carlton Fields

Years of Embezzlement Precluded From Coverage Under E&O Policy’s Commingling Exclusion

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A federal district court in North Dakota recently granted an insurer’s motion to dismiss in Campbell Property Management LLC v. Lloyd’s Syndicate 3624, finding that both prongs of a “commingling exclusion” to coverage...more

Farella Braun + Martel LLP

Claims-Made Policy Note: Policy’s Use of Defined Terms May Expand or Limit Coverage Under Related Acts Provision

In an unpublished decision, the Ninth Circuit affirmed the Central District of California’s interpretation of the related acts provision in a professional liability policy, holding that related acts reported in a prior policy...more

Carlton Fields

Related Decisions: Three Recent Cases Emphasize Breadth of “Related Wrongful Acts”

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Third-party liability policies often include aggregation clauses. As the name suggests, these clauses aggregate “related claims” or “interrelated wrongful acts” into one claim or occurrence....more

Goulston & Storrs PC

Eleventh Circuit Finds No Coverage for Contempt Proceedings under Lloyd's Professional Liability Insurance Policy

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In Jones, Foster, Johnston & Stubbs, P.A. v. Prosight-Syndicate 1110 at Lloyd’s, United States No. 15-12399, 2017 WL 586450 (11th Cir., February 14, 2017) the insured law firm sought to recover legal fees and costs incurred...more

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