Here’s a fairly common circumstance in large commercial liability claims. A policyholder settles with the carrier in Layer 1 for less than its limits, leaving a gap between Layer 1 and the next layer up. Does the carrier in Layer 2 then have an obligation to contribute to settlement with the underlying plaintiff?
Example: I…
In Continental Casualty Co. v. Law Offices of Melbourne Mills, Jr., PLLC, the Sixth Circuit has just ruled that a lawyer’s failure to disclose an ongoing state bar association investigation against him constituted a material representation justifying the rescission of his malpractice insurance.
The defendant was one of three attorneys who represented a class of Kentucky…
Here’s a fairly frequent scenario in the insurance world. The carrier takes a “no- pay” position on a liability claim. The policyholder settles the case and then seeks reimbursement from the carrier in a coverage suit. What exactly does the policyholder have to prove in order to get paid?
In Fireman’s Fund v. Security Ins.