Excess Policies

News & Analysis as of

Insurance Recovery Law -- November 2014 #2

South Carolina Court Holds That Absent Substantial Prejudice, Late Notice Does Not Bar Insurer’s Coverage Obligations - Why it matters: A federal court in South Carolina ruled that absent a showing by an insurer...more

Well, That Seemed Exhausting: When Is an Excess Insurer Obligated to Post an Appellate Bond?

“You say to-may-toe; I say to-mah-toe,” or so the saying goes. According to the Eastern District of Pennsylvania in Charter Oak Insurance Company v. Maglio Fresh Food, No. 12-3967 (E.D. Penn. Sept. 9, 2014), the same can be...more

Missouri Court Allows Insured to Pursue Breach of Fiduciary Duty Claim Against Excess Insurer

In its recent decision in SSM Health Care Corp. v. Repwest Ins. Co., 2014 U.S. Dist. LEXIS 158164 (E.D. Mo. Nov. 7, 2014), the United States District Court for the Eastern District of Missouri had occasion to consider whether...more

Pro-Policyholder Opinion Drives Home Importance of Excess Policy Language When Settling with an Underlying Insurer for Less Than...

A reoccurring issue with excess insurance is whether a policyholder can trigger excess coverage by agreeing to a below-limits settlement with an underlying insurer, and filling in the gap between the settlement amount and the...more

Get Exhausted! The Tenth Circuit Schools an Excess Insurer on How to Preserve Subrogation Claims in a Settlement

Claims against insured businesses sometimes implicate multiple liability policies issued by several different carriers, and it is sometimes prudent for some of those carriers to settle the underlying action, even if others...more

Excess Insurer Contract Language Amounts to Free Pass

Excess insurance is essential to businesses of medium or larger size because it provides catastrophe coverage at much lesser rates per dollar of coverage than primary insurance. There are two main reasons for this: The excess...more

Pennsylvania Court Affirms Liquidator’s Decision That A Claim Arising From A Reinsurance Policy Is Entitled To A Lower Payment...

A Pennsylvania appellate court has affirmed the liquidator’s determination that a group excess insurance policy issued by Reliance is a reinsurance policy and thereby entitled to a low level of priority of payment from the...more

Insurance Recovery Law - September 2014 #2

D&Os Entitled to Unfettered Access to Bankrupt Company’s Policy Proceeds to Fund Defense Costs: Why it matters - In an important victory for directors and officers of a bankrupt company, a New York court...more

Excess Insurance Triggered Despite Policyholder’s Settlement with Primary Insurers for Less than Policy Limits

When faced with a catastrophic loss triggering multiple layers of coverage and recalcitrant insurers at the primary layer, a policyholder has strong incentives to settle with the first-layer carriers for less than the full...more

Texas Supreme Court Argument Preview (9/14)

13-0080, RSUI Indemnity Co. v. The Lynd Co. - The primary issue in this insurance coverage case is how the policy limits of an excess property insurance policy should be calculated. The policy at issue covers multiple...more

Excess Policy Attaches Notwithstanding Settlement with Underlying Insurers for Less Than Full Limits

Recently, a Texas Court of Appeals handed down a pro-policyholder opinion in the case of Plantation Pipe Line Co. v. Highlands Insurance Co., in Receivership, Case No. 11-12-00029-CV (Tex. App. Aug. 29, 2014). The issue...more

What Triggers Excess Coverage In An Environmental Case: Not Necessarily the Payment of the Full Underlying Policy Limits

More and more excess insurers are taking the position that a policyholder which settles with primary or low level excess insurers for less than the full amount of the policy limits has waived its right to obtain coverage from...more

7th Circuit Holds Excess Insurer Has No Duty to Indemnify Punitive Damages

In its recent decision in Fox v. Am. Alternative Ins. Corp., 2014 U.S. App. LEXIS 12799 (7th. Cir. July 7, 2014), the United States Court of Appeals for the Seventh Circuit, applying Illinois law, had occasion to consider...more

New York Department Of Financial Services (“NYDFS”) Adopts Emergency Regulation Regarding Excess Line Placements Governing...

The Emergency Regulation, effective April 21, 2014, conforms 11 NYCRR 27 to the requirements of the Non-Admitted and Reinsurance Reform Act of 2010 (“NRRA”). The amendments make the following changes to Insurance Regulation...more

Insurance Recovery Law - July 2014 #3

Washington Supreme Court Rules That It Was Error To Delay Adjudication Of Insurer’s Duty To Defend, But Should Stay Discovery As To Insurer’s Coverage Defenses - Why it matters: The Washington Supreme Court...more

Sixth Circuit Blurs Line Between Primary and Excess

The Sixth Circuit recently addressed the question of whether an excess insurer must provide a defense when the primary insurer fails to do so. In IMG Worldwide v. Westchester Fire Insurance Company, No. 3836 (6th Cir. July...more

Insurance Recovery Law - July 2014 #2

U.S. Bank Wins Coverage Under Delaware Law For $55 Million Overdraft-Related Settlement - Why it matters: In a victory worth tens of millions of dollars, a Minnesota federal court ruled that U.S. Bank is...more

Bad Faith Sentinel - July 2014

In This Issue: - Eleventh Circuit: Excess Insurer, Like All Florida Bad Faith Claimants, Must Prove Causation to Succeed on Bad Faith Claim Against Primary Insurer - Northern District of Alabama: No Bad Faith...more

Eleventh Circuit: Excess Insurer, Like All Florida Bad Faith Claimants, Must Prove Causation to Succeed on Bad Faith Claim Against...

Westchester Fire Insurance Co. v. Mid-Continent Casualty Co., No. 13-12932, 2014 WL 2766764 (11th Cir. Jun. 19, 2014) - The Eleventh Circuit finds that a primary insurer did not act in bad faith by failing to inform...more

Eleventh Circuit Rejects Excess Insurers Bad Faith Claim Against Primary Insurer Due to Lack of Damages Causation

The Eleventh Circuit Court of Appeals reversed a Florida district court’s award of damages to the excess insurer on the ground that the excess insurer failed to prove the primary insurer’s alleged bad faith had caused the...more

Policyholder Observer

Encryption Flaw "Heartbleed" Creates Data Risk: How Insurance Can Stanch the Bleeding - In early April, news broke of an encryption flaw named “Heartbleed” that exposed companies to data breaches for over two and one...more

New York High Court Finds that New York Insurance Law §3420(d)(2)’s Prompt Notice Requirement Does Not Extend to Claims Limited to...

In KeySpan Gas East Corp. v. Munich Reinsurance America, Inc., et al., — N.Y.3d –, (N.Y. June 10, 2014), a case involving two environmental damage claims, the New York Court of Appeals reversed an appellate decision which...more

Bad Faith Sentinel - May 2014

In This Issue: - Northern District of New York: Primary Insurer That Waited Nine Years to Tender Policy Limits to Injured Plaintiff Was Liable to Excess Carrier for Bad Faith - Middle District of Pennsylvania:...more

Insurance Recovery Law - May 2014

New York Court Strictly Applies Draconian Policy Language, Holding Excess Coverage Forfeited By Settling With Underlying Insurers For Less Than Policy Limits - Why it matters: A New York appellate court has...more

Time To Reconsider The Assignability Of Certain Claims

If an insurance company refuses to settle a claim, once liability has become reasonably clear and there is an opportunity to settle within limits, the defending insurer runs the risk of an excess verdict. Once the verdict is...more

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