News & Analysis as of

Settlement 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

Cozen O'Connor

Next Steps for an Excess Insurer After an Unsuccessful Hammer Letter

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Insurers are frequently asked to satisfy their duty of good faith and fair dealing by entertaining reasonable settlement offers within the combined limits of the policies. However, primary and excess insurers do not always...more

Akerman LLP

Abracadabra – How a Stalking Bill Magically Turned into Revisions to a Georgia Settlement Statute

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In Georgia’s recent Legislative Session, Senate Bill 83 started off addressing the eligibility for restraining orders related to stalking, but there must have been some magic pixie dust floating around the House Committee...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

Bradley Arant Boult Cummings LLP

Insurance in the Know (Part 2): Settlement Offers Within Policy Limits Heighten Scrutiny on Insurers

Parties to a lawsuit may have vastly different perspectives on the validity and value of a claim, but as a matter of course, the issue of settlement will arise. Trial is an exceedingly expensive endeavor with an uncertain...more

Presley & Presley

No Settlement Opportunity, No Problem

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The vast majority of extra-contractual/bad faith cases involve a carrier’s failure to secure a release of an insured by accepting a reasonable settlement opportunity within the policy limits. The absence of a reasonable...more

White and Williams LLP

Top Developments March 2024

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Delaware Supreme Court concludes that a letter from a lawyer informing an insured of possible lawsuits without identifying potential plaintiffs or demanding payment is not a “claim for damages” within the meaning of...more

Chambliss, Bahner & Stophel, P.C.

Do Personal Injury Settlements Affect SSI or SSDI Benefits?

The answer to how personal injury settlements affect Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits depends on your specific situation. However, there is a general answer: SSDI...more

Presley & Presley

Covenant Not To Execute Does NOT Preclude Damages

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Following a coverage denial, many jurisdictions permit insureds and claimants to enter into covenants not to execute and to enforce a resulting judgment against the insurer if coverage is shown to exist. Insurers often argue...more

White and Williams LLP

First Circuit Limits Insurers’ Right to Recoup Defense Costs, Settlement Payments

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Weighing in on an issue that has divided courts nationwide, the U.S. Court of Appeals for the First Circuit has ruled that an insurer under Massachusetts law has no right to recoup defense costs, or amounts the insurer pays...more

Cozen O'Connor

Is there CGL Coverage for Cyber Breach Claims?

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The coverage dispute in Home Depot, Inc., et al v. Steadfast Insurance Company, et al. arises out of a 2014 data breach of millions of Home Depot’s customers’ payment information. As a result of the breach, the financial...more

Morris, Manning & Martin, LLP

Georgia Court of Appeals Invalidates Another Insurer’s Acceptance of a Holt Demand Based on Language in Settlement Check

Insurers attempting to accept a time-limited demand (often called a “Holt” demand in Georgia) must adhere to every term and condition of performance therein, even those that appear immaterial; otherwise, a court may find that...more

Presley & Presley

Unique Supplemental Payments Provision Leads to Supplemental Payday

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Supplemental Payments provisions are present in almost every liability policy. These provisions generally detail the insurer’s responsibility for interest and costs awarded in suits that it has undertaken to defend....more

McGuireWoods LLP

Merck-Settlement of $1.4 Billion Coverage Dispute Over NotPetya Cyberattack Places Renewed Spotlight on War Exclusions in 2024

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Last week, Merck & Co. filed documents with the Supreme Court of New Jersey indicating that it reached a settlement with its “all risk” property insurers in a long-running coverage dispute involving over $1.4 billion in...more

White and Williams LLP

New York Court Holds Insurer Can Recover Before Insured Is Made Whole

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In State Farm Fire & Cas. Co. v. Tamagawa, Index No. 510977/2021, 2023 N.Y. Misc. Lexis 5434, the Supreme Court of New York considered whether an insurance carrier can settle its property subrogation lawsuit with the...more

(ACOEL) | American College of Environmental...

Global Warming and Insurance Underwriting 2024

Although most insurance carriers do not speak in terms of global warming, the insurance market is making rapid changes in response to increased storms, tornadoes, rain, flooding, wildfires and other natural disasters. Because...more

Pillsbury - Policyholder Pulse blog

Say What You Mean: Delaware Court Finds Bump-Up Exclusion Ambiguous as Applied to Mergers Versus Acquisitions

Long a feature of directors’ and officers’ (D&O) liability insurance policies, the so-called “Bump-Up” Exclusion has gotten significant attention over the last few years. Because of the recent escalation in securities...more

Hinshaw & Culbertson - Insights for Insurers

Insurers Face Large PFAS-Related Losses: A Primer on Forever Chemical Regulation, Liabilities, and Insurance Coverage Issues

Per and polyfluoroalkyl substances (PFAS) represent major exposures to insurers and their policyholders. Thousands of lawsuits are pending nationwide and several large settlements have already been reached. Insurers are...more

White and Williams LLP

New York Preserves Subrogation Rights

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The insurer’s right of subrogation is equitable in nature, even if not based in contract. However, since the insurer steps into the shoes of its insured and is limited to the rights of its insured, an integral part of the...more

Adams and Reese LLP

Deeper Dive into HB 837 – Potential Effects, Challenges of Wide-Ranging Florida Tort Reform Bill

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Last month, we provided an overview of Florida Tort Reform HB 837 - a wide-ranging tort reform bill ratified on March 24, 2023. With the stated goal of stabilizing the state’s insurance market, the bill’s sweeping provisions...more

Bradley Arant Boult Cummings LLP

Insurance May Cover Your False Claims Act Settlement

On May 3, 2023, the Seventh Circuit affirmed $10 million in insurance coverage for a False Claims Act (FCA) settlement in a case based on alleged Anti-Kickback Statute violations. Astellas US Holding, Inc. v. Federal...more

Maron Marvel

Contractual Additional Insureds – What Coverage? The Texas Supreme Court Weighs In

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Primary and excess insurance carriers and their counsel need to pay close attention to a new Texas Supreme Court case Exxon Mobil vs. National Union Fire Insurance Company of Pittsburgh Pennsylvania and Starr Indemnity &...more

Farella Braun + Martel LLP

More Stringent California Claim Law Could Benefit Policyholders

To combat a perceived litigation tactic by plaintiffs counsel of using settlement demands within policy limits to set up insurers for bad faith, insurance company associations lobbied for statutory clarification to avoid...more

Rumberger | Kirk

Breaking it Down: What Florida Insurers Need to Know about Bad Faith After Tort Reform

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Bad-faith litigation is a hot topic in Florida following the passage of the new tort-reform measure known as House Bill 837. However, even in the face of reasonable legislative changes, it remains important for insurers and...more

King & Spalding

Southern District of Ohio Finds Bank’s Settlement of Fraudulent Transfer Claim Uninsurable

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On December 16, 2022, the U.S. District Court for the Southern District of Ohio held that a settlement of a fraudulent transfer suit was not covered under the settling defendant’s insurance policies. Huntington National Bank...more

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