Policy Limits

News & Analysis as of

Florida Court Clarifies When Coverage Is Available Under Commercial Property Policy For Matching To Achieve Aesthetic Uniformity

In Great American Insurance Co. of New York v. The Towers of Quayside No. 4 Condominium Assn., 2015 U.S. Dist. LEXIS 150358 (S.D. Fla. November 5, 2015), the court analyzed a Motion for Summary Judgment filed by Great...more

Insurance Recovery Law - November 2015

Despite Prior Suits, Policyholder Entitled to Coverage for DOJ Investigation - Why it matters: A policyholder was entitled to coverage for a Department of Justice (DOJ) investigation despite already facing possibly...more

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

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

Beware of Good Intentions: Insurer Cannot Escape Duty to Defend by Interpleading Policy Limits That Were Not Subject to Competing...

On October 6, 2015, the United States District Court, Northern District of California held that an insurer breached its duty to defend by interpleading remaining policy limits and ceasing its defense of its insured. ...more

Illinois Court: Multi-year Policy Limits Applied To Entire Policy Period, Not Annually, And Payments For Potentially Covered...

An Illinois trial court recently addressed the issue of whether an insurer exhausted its limits of liability in paying nearly $90 million for an insured’s defense and indemnity associated with asbestos bodily injury claims. ...more

How Does The DOJs Recent Yates' Memo Impact Your Insurance Coverage For Government Investigations?

On September 9, 2015, the U.S. Department of Justice (the “DOJ”) issued a memorandum that was authored by Deputy Attorney General Sally Yates and titled, “Individual Accountability for Corporate Wrongdoing” (the “Yates...more

Mississippi Court Holds Defense Costs Outside of Limits

In its recent decision in Federal Ins. Co. v. Singing River Health System, 2015 U.S. Dist. LEXIS 134814 (S.D. Miss. October 2, 2015), the United States District Court for the Southern District of Mississippi issued a decision...more

Can an insurer be liable for bad faith failure to settle without a settlement demand?

The Tenth Circuit, applying Oklahoma law, recently became the latest court to rule on this frequently-disputed issue. The court ruled that, while a primary insurer has an affirmative duty to initiate settlement negotiations...more

Second Circuit Holds Auto Collisions Caused by Multiple Occurrences

In its recent decision in Nat’l Liab. & Fire Ins. Co. v. Itzkowitz, 2015 U.S. App. LEXIS 16763 (2d Cir. Sept. 22, 2015), the United States Court of Appeals for the Second Circuit, applying New York law, had occasion to...more

Under Illinois Law, Mine Subsidence Held to Be a Type of Excluded Earth Movement

Ever since Mattis v. State Farm Fire & Cas. Co., 118 Ill.App.3d 612, 73 Ill.Dec. 907, 454 N.E.2d 1156 (1983), Illinois courts have held that an earth movement exclusion contained in a first-party policy applies only to earth...more

Texas Supreme Court Declines Opportunity to Review Appellate Decision Clarifying Insurer’s Settlement Obligations In...

Last year in Patterson, et al. v. Home State County Mut. Ins. Co., 2014 Tex. App. LEXIS 4460, 2014 WL 1676931 (Tex.App., Apr. 24, 2014), the Texas First Court of Appeals (Houston) held that an insurer was not obligated to...more

A Judgment After an Adversarial Trial is Still Needed to Obtain Amounts Above the Policy Limits

Woodland Hills personal injury attorney Barry P. Goldberg is always looking for creative ways to obtain as much as possible for his clients. It has become more common that the value of the plaintiff’s injuries easily exceed...more

California Appellate Court Reaffirms Protection Against Stipulated Judgments

In 21st Century Ins. v. Superior Court (No. E062244; filed 9/10/15), a California appeals court confirmed that a defending insurer is not bound by a stipulated judgment entered without its consent, and the fact that the...more

Insurance News, Summer 2015

The U.S. Senate Commerce Committee asked Michael Menapace to testify as an expert witness at a hearing called by the Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security entitled, "Examining the...more

Eleventh Circuit Finds No Bad Faith in Multiple-Claimant Claims-Handing Situation

In a new decision, Mesa v. Clarendon National Ins. Co., 2015 WL 5059496, 2015 U.S. App. LEXIS 15203 (11th Cir., Aug. 28, 2015), the Court of Appeals found that the insurer’s claims-handling of multiple claimants did not rise...more

The Tenth Circuit rejects excess insurers’ implied duty to investigate and initiate settlement negotiations

Interpreting Oklahoma law, the US Court of Appeals for the Tenth Circuit recently held that the duty of good faith and fair dealing does not require that an excess insurer, unlike a primary insurer, affirmatively investigate...more

Eighth Circuit: No Bad Faith Where Insured Failed to Make a Sufficient Demand and Insurer Refused to Entertain Settlement Offer...

Purscell v. Tico Ins. Co., No. 13-2362, 2015 WL 3855253 (8th Cir. June 22, 2015). Court holds it was not bad faith for insurer to pursue investigation into underlying lawsuit before considering settlement...more

Eighth Circuit: Repairs May Be Compensable as Extra Expense Even if They Don’t Reduce the Business Income Loss

“Read the policy, read the policy, read the policy” is a famous piece of advice for coverage counsel everywhere. Last Friday in Midwest Reg’l Allergy, Asthma, Arthritis & Osteoporosis Center v. Cincinnati Ins. Co., 2015 WL...more

Duty to Cooperate Ruling Narrows Insurers’ Ability to Foreclose Coverage for Settled Class Action Claims

Insurance policies typically include a cooperation clause, which requires the insured to cooperate with the insurer in the defense of a covered claim. Insurers routinely use this clause as a sword against their insureds by...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

Third Circuit Holds That Under Pennsylvania Law An Insured Against Whom Punitive Damages Have Been Imposed May Not Recover Those...

As a matter of public policy, Pennsylvania (like a number of other states) prohibits insuring against punitive damages. But what happens if an insurer refuses to settle a case against a policyholder within policy limits and...more

Don’t Wait Until It’s Too Late: Top 10 Recommendations for Negotiating Your Cyber Insurance Policy

As more and more companies of all sizes ranging across a wide spectrum of industries have been exposed to network and data security breaches in recent years, the market for insurance products dedicated to cover cyber risks...more

Insurance Recovery Law - April 2015 #2

Policyholder Can Keep Selected Counsel, Court Rules; Insurers’ Objection Too Late - Why it matters: A policyholder was able to maintain its selected defense counsel after a federal court judge ruled that the insurers’...more

New Jersey Trial Court Holds Storm Surge Not Subject to Flood Sublimit Where Policy Expressly Includes “Ensuing Storm Surge” in...

In recent years, many courts have held that storm surge is a species of excluded flood loss; we reported on a New York example in July. This week, in Public Serv. Enter. Group, v. ACE Amer. Ins. Co., 2015 N.J. Super. Unpub....more

Insurance Payout Goes Up In Smoke: Sixth Circuit Finds Manufacturing Marijuana Changes Use Of A Residence.

In Nationwide Mut. Fire Ins. Co. v. McDermott, 2015 U.S. App. LEXIS 3012 (6th Cir. Feb. 24, 2015), a homeowner’s claim for a total fire loss was denied based on the policy’s “change of use” endorsement. On January 13,...more

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