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California Supreme Court Holds Horizontal Exhaustion Not Needed – Vertical Exhaustion Rules

On April 6, 2020, the California Supreme Court issued its decision in Montrose Chemical Corp. of California v. Superior Court, No. S244737.  It ruled that in the continuing loss context, California law permits a policyholder to seek indemnification under any excess policy once it has exhausted the underlying excess policies in the same policy period.  … Continue Reading

A Split Eighth Circuit Affirms Insurer Had a Duty to Defend County Against a 1983 Case

Liability insurance policies, especially directors and officers and other types of errors and omissions policies, often have provisions that deem related acts to constitute one wrongful act.  How that provision applies is fact specific, but its application can make a difference in determining which insurance policy must defend an underlying claim.  In a recent case, … Continue Reading

Battle of Other Insurance Clauses In CGL Policies for Contractors

A recent Summary Order from the Second Circuit Court of Appeals highlights the difficulties that often arise with other insurance clauses and additional insureds. Which carrier has the primary duty to defend and indemnify an underlying action is a question that turns up with frequency when there are multiple parties sued and multiple possible applicable insurance … Continue Reading

New York Court of Appeals Reaffirms Contract Language Controls Allocation and Exhaustion Methodologies

Long-tail claims from asbestos and other toxic exposures have plagued policyholders and their insurers for decades. Myriad issues arise when trying to determine when injuries are incurred, how policies are triggered, how liability should be allocated among multiple policies and when excess policies are required to cover the losses. None of this is easy and … Continue Reading

California Weighs In on Enforcement of Other Insurance Clauses

On Monday, in Certain Underwriters at Lloyd’s, London v. Arch Specialty Ins. Co., 16 C.D.O.S. 3833 (Cal. Ct. App. Apr. 11, 2016), the California Court of Appeal (Third District) rejected Arch Specialty Insurance’s attempt to enforce “other insurance” clauses in the conditions and coverage grant of the relevant policies.… Continue Reading

OCIP and CCIP Policies and the Duty to Reimburse for Defense Costs

I have run across a number of interesting situations involving owner controlled or contractor controlled insurance programs (“OCIP” or “CCIP”) that have developed into actual coverage disputes or potential disputes (can’t talk about the potential one!). For those who don’t know, an owner controlled or contractor controlled insurance policy or program is essentially a way … Continue Reading

Settling in Excess of Policy Limits May Still Result in Liability to Other Insurer

Applying Florida law, the Eleventh Circuit has held that a liability insurer that settled, for more than its policy limits, a tort claim against its named insured was liable for breach of contract to a second insurer that defended another insured for the same occurrence and also settled above its policy limits.  Nova Cas. Co. … Continue Reading
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