News & Analysis as of

Duty to Settle

Insured May Bear the Consequences of Insurer’s Negligence

For decades, California courts have mandated that an insurer is obligated to accept a “reasonable” settlement demand within policy limits on behalf of its insured. If it fails to do so, it is liable for the entire judgment,...more

Virginia Supreme Court Rules on UM Carriers’ Duty to Settle Prior to Judgment

by Sands Anderson PC on

Recently, in Ebenezer Manu v. GEICO Casualty Company, the Supreme Court of Virginia clarified the issue of when an insurance provider has a duty to offer a good faith settlement to its insured when the accident was the fault...more

When does the statute of limitations set in on an insurer’s wrongful refusal to settle?

by Nossaman LLP on

Normally, the statute of limitations sets in when “the cause of action shall have accrued,” to quote California Code of Civil Procedure section 312. In an effort to simplify that date for lay readers, the Sacramento County...more

Should You Withdraw The Reservation of Rights To Avoid Entry of a Consent Judgment?

by Cozen O'Connor on

An insurer that defends its insured against a third party’s lawsuit, while reserving rights to deny coverage to its insured for any judgment, may face a decision point when underlying settlement discussions become ripe to...more

Kansas: Safe harbor for insurer faced with settlement demand to only one insured

by Dentons on

What should an insurance company do when liability of the insured is clear, the damages clearly exceed the limits, and the claimant sends a settlement demand that would exhaust policy limits while releasing only one out of...more

Supreme Judicial Court Affirms Award 0f $2,250,000 plus Interest Against Insurer for Breach of Duty to Defend and Settle — on...

by Mintz Levin on

In Boyle v. Zurich American Insurance Company, SJC-11791 (Sept. 14, 2015), the Supreme Judicial Court (SJC) affirmed an award of $2,250,000 plus interest against an insurer for failing to defend its insured on a $50,000...more

Conflict Resolution: Illinois Appellate Court Finds No Conflict in Defending Two Insureds, and No Duty of Primary to Excess...

by Carlton Fields on

When an insurer defends its insured under a liability policy, the insurer has a duty to act in good faith to the insured in responding to settlement offers. In Illinois Emcasco Insurance Co. v. Nationwide Mutual Insurance...more

Insurance Recovery Law - July 2015 #2

California Court: Rejected Demand Within Policy Limits Not Necessary for Bad Faith Claim - Why it matters: Insurers must proceed with caution when they become aware that a settlement within policy limits is possible,...more

Louisiana Supreme Court Holds That Statute May Confer Broad Duties On Insurers

In Kelly v. State Farm Fire & Casualty Co., the Supreme Court of Louisiana recently held that an insurer can be liable for bad faith failure to settle a claim even if it has not received a firm offer to settle the claim. The...more

Recent Decisions Reinforce the Value of Quality over Quantity in a Reservation of Rights Letter

by Wilson Elser on

In two recent cases, Advantage Builders & Exteriors v. Mid-Continent Casualty Co. No. WD 76880 (Mo. Ct. App. Sept. 2, 2014) and EAN Services, LLC v. Brunson, No. 2-14-118 (Ill. Ct. App. September 8, 2014), the courts remind...more

Missouri Court of Appeals Rejects Insurers’ Appeal of Jury Verdict on Bad Faith Failure to Settle, but Remands for New Trial on...

Advantage Bldgs. & Exteriors, Inc. v. Mid-Continent Cas. Co., No. WD76880, 2014 WL 4290814 (Mo. Ct. App. Sept. 2, 2014), reh’g and/or transfer denied (Sept. 30, 2014). Missouri Court of Appeals affirms sufficiency of...more

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

by Cozen O'Connor on

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

Everyone Can Find Reasons to Give Thanks for 2013 California Coverage Opinions

by Wilson Elser on

Thanksgiving is one day when the whole family gets together and sets aside petty differences to give thanks to the Almighty for the bounty we enjoy. California’s insurance coverage family is often a dysfunctional one. To...more

Duty to Settle Absent a Demand? California Court Says No

by Wilson Elser on

The California Court of Appeal in Reid v. Mercury Insurance Company [(2013) 220 Cal.App.4th 262 (rehearing denied November 6, 2013)] found no California authority “standing for the proposition that there is a duty to settle...more

Insurance Recovery Law -- Oct 29, 2013

California Insurance Dreamin’ - Why it matters: The Swanson decision establishes a clear boundary line for an insurer’s Cumis obligations. Just because a conflict existed at one point in the litigation and the insurer...more

Policy Observer - January 2013

It has been nearly three months since Superstorm Sandy battered the East Coast of the United States. With several hundred thousand residents still without homes and many businesses still operating out of temporary facilities,...more

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