National Insurance Law Forum

National Insurance Law Forum

Published By The Attorneys of the National Insurance Law Forum

Tag Archives: excess

Colorado Court of Appeals follows national equitable subrogation trend rejecting excess carrier’s bad faith claim against primary carrier.

Posted in Bad Faith/Extra Contractual, Excess and Umbrella Insurance, Recent Cases
By Stacy Broman and Danielle Dobry on April 11, 2018 Recently, the Colorado Court of Appeals in Preferred Professional Ins. Co. v. The Doctors Co., No. 17CA0405, 2018 WL 1633269 (Colo. Ct. App. Apr. 5, 2018) determined whether an excess insurer pursuing recovery under an equitable subrogation theory for a primary insurer’s failure to settle… Continue Reading

Exhausting Policy Limits

Posted in Duty to Indemnify, Excess and Umbrella Insurance, Liability Coverage, Recent Cases
As insurance is depleted for ongoing claims like asbestos bodily injury and long-term environmental pollution, how an insured is to use its layers of insurance is an issue.  The California Supreme Court has been asked to weigh in on the question of whether “horizontal exhaustion” or “vertical exhaustion” principles should apply to excess and umbrella… Continue Reading

Excess Insurance: Issues Regarding Exhausting the Underlying Policy Limits

Posted in Duty to Indemnify, Excess and Umbrella Insurance
A basic premise of excess insurance coverage is that it applies only after the underlying insurance limits have been exhausted.  Problems may arise, however, when a primary insurer refuses to pay the full limits toward a claim that exceeds the underlying policy limits.  An insured may be left with either (1) settling with the primary… Continue Reading

The Case of the Vanishing Self-Insured Retention

Posted in Liability Coverage
Rather than declaring that self-insurance is void as against the public policy of Rhode Island, the Supreme Court instead interpreted 42-14.1-2(a) as only allowing self-insurance to the extent that it is permitted by regulations issued by the Department of Business Regulation. As the DBR has not promulgated any such regulations to date, the court declined to give effect to the SIR provisions in the Columbia Casualty policy.… Continue Reading

Mississippi Court Recognizes Right of Excess Insurer to Sue Defense Counsel for Malpractice

Posted in Bad Faith/Extra Contractual
Although unexpectedly large jury verdicts have prompted disputes between excess and primary insurers for years, the phenomenon of excess carriers suing defense counsel hired by the primary insurer is relatively new. The issue presented in such cases is whether, in the absence of a direct attorney/client relationship, the excess carrier has any right to sue counsel… Continue Reading

Significant California Decisions in 2008: What is an “Accident” and Whether an Excess Insurer Must Pay Where the Primary Settled for Less Than Policy Limits

Posted in Liability Coverage
In reviewing California appellate decisions issued in 2008, my vote for the most significant decisions are on the issue of what constitutes an “accident” (State Farm) because it is a departure from prior law on the issue, and the issue of whether an excess insurer must pay when the primary settled for less than policy… Continue Reading

Petition for Review Denied in Qualcomm

Posted in Liability Coverage
The California Supreme Court denied review in Qualcomm, Inc. v. Certain Underwriters at Lloyds, London (2008) 161 Cal.App.4th 184 (reported earlier in this blog). In Qualcomm, the California appellate ruled that an insured which settles with its primary insurers for less than policy limits, cannot collect from an excess insurance policy that provided it did not… Continue Reading

Excess Insurer Does Not Pay Until Primary Pays Or Held Liable To Pay Full Limits

Posted in Liability Coverage
Full primary insurance limits must be paid (or be held liable to pay) prior to excess coverage attaching where the excess policy requires that the underlying policy “have paid or have been held liable to pay the full amount” of underlying limits. Where the insured settled with its primary insurer for less than policy limits, the excess insurer… Continue Reading

Fourth Circuit Upholds “True” Excess Policies In Dispute Over Priority of Coverages

Posted in Liability Coverage
Controversy has often arisen in conflicts between primary liability insurance policies that contain “excess” other insurance wordings and “true” excess policies (i.e., umbrella or higher layer excess policies). In such cases, does one policy pay before the other or, as is often the case with conflicting “other insurance” terms, do both policies pay concurrently? In… Continue Reading