National Insurance Law Forum

National Insurance Law Forum

Published By The Attorneys of the National Insurance Law Forum

Tag Archives: liability insurance

ALI Restatement Set For Vote on Tuesday

Posted in Uncategorized
The Restatement of the Law of Liability Insurance is scheduled for a debate and vote at the ALI’s Annual Meeting in Washington, D.C. on Tuesday, May 23.  To the surprise of many, however, the ALI announced this morning that any final vote on the project as a whole will be deferred until May 2018 to… 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

Attorney Fees Awarded in TCPA Class Action Suit are not “Damages” nor “Costs” Payable Under the Supplementary Payment Provision of a CGL Policy.

Posted in Liability Coverage
  Are attorney’s fees awarded in a class action settlement “damages” covered by a general liability policy?   Are they covered as “costs” under the “Supplementary Payments” Provision of a CGL policy?  Not according to the Eleventh Circuit in Alea London Limited v. American Home Services, Inc., 638 F.3d 768 (11th Cir. 2011). In that case, the… Continue Reading

Insured Lost Both Defense and Indemnity Coverage when It Refused to Allow the Insurer to Control its Defense

Posted in Liability Coverage
  In Travelers Property v. Centex Homes, No. C 10-02757 CRB (N. D. Cal. April 1, 2011), Centex, a general contractor, was sued in certain construction defect litigation. Pursuant to a reservation of rights, Travelers agreed to defend Centex, an additional insured under its policy. Centex refused to allow counsel retained by Travelers to defend it or to… Continue Reading

The Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

Posted in Liability Coverage
The Court of Appeals of Indiana recently addressed the “Montrose“  language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged.  The insuring agreement requires that “bodily injury” or “property damage” be caused by… Continue Reading

New Mexico Supreme Court Holds Actual Notice from Any Source is Sufficient to Trigger Defense Obligation

Posted in Liability Coverage
In what can only be called a significant turn around, the New Mexico high court recently overruled twenty-four years of precedent when it announced that actual notice from any source to a liability insurer of a lawsuit against its insured could trigger the duty to defend, even when the insured failed to provide notice of the suit… Continue Reading

Frustration Mounts in Texas as Primary Carriers Struggle with How to Deal with Recalcitrant Co-Primary Carriers

Posted in Liability Coverage
A Federal District Court Judge from the Southern District of Texas’ Galveston Division recently granted summary judgment against an insurer seeking to enforce identical pro rata sharing provisions contained in multiple primary insurance policies.  In doing so, the court highlighted the lack of options primary carriers now face in Texas when co-primary carriers don’t contribute… Continue Reading

Late Notice: Is Prejudice as a Matter of Law Dead in Texas?

Posted in Liability Coverage, Recent Cases
In Nejati v. Royal Indemnity Co., 2008 WL 483496 (N.D. Tex., February 19, 2008), Royal was sued by Nejati to enforce a $1.4 million default judgment obtained against Royal’s insured under a commercial auto policy.  Nejati obtained a default judgment because the insured failed to forward suit papers to Royal and repeatedly refused to communicate with Royal… Continue Reading

Texas Supreme Court Distinguishes “No Notice” from “Late Notice” for Liability Insurers

Posted in Liability Coverage, Recent Cases
Last Friday, the Texas Supreme Court answered “no” to the following certified questions from the Fifth Circuit:  "Where an additional insured does not and cannot be presumed to know of coverage under an insurer’s liability policy, does an insurer that has knowledge that a suit implicating policy coverage has been filed against its additional insured… Continue Reading

Texas Supreme Court Reverses Itself on Contractual Indemnity Coverage

Posted in Bad Faith/Extra Contractual, Liability Coverage, Recent Cases
Last Friday, the Texas Supreme Court withdrew its 2006 opinion in Evanston Ins. Co. v. Atofina Petrochemicals, Inc., 2006 WL 1195330 (Tex. May 5, 2006) (where the high court found the additional insured provisions of the liability policy were not broad enough to indemnify the third-party’s own acts of negligence, but it failed to decide… Continue Reading

Texas Supreme Court Holds Public Policy Does Not Prohibit Insurance Coverage for Punitive Damages

Posted in Liability Coverage, Recent Cases
This past Friday, the Texas Supreme Court issued a important decision on the availability of liability insurance to cover punitive damage awards when it answered the following certified question presented by the Fifth Circuit: “Does Texas public policy prohibit a liability insurance provider from indemnifying an award for punitive damages imposed on its insured because of… Continue Reading

Texas Supreme Court Limits Reimbursement Rights

Posted in Liability Coverage
Last Friday, the Texas Supreme Court issued its opinion on rehearing in Excess Underwriters v. Frank’s Casing, __ S.W.3d __ (Tex. 2008).  The Court withdrew its three-year old opinion that initially created a firestorm in the Texas insurance industry (and also lead to great consternation with commercial insureds) regarding the rights of reimbursement that a… Continue Reading