The Sixth Circuit has held under Michigan law that a reservation of rights letter including a right to reimbursement was sufficient to entitle an insurer to recoup defense costs paid when the insurer had no duty to defend even though
Insurance Coverage Notes and Developments
News and analysis of legal issues affecting the Insurance Industry
Insurance Coverage Notes and Developments, published by Dykema, focuses on legal issues related to insurance coverage disputes and developments. The blog covers court decisions interpreting insurance policy provisions such as exclusions, duties to defend, and claims-made requirements. It addresses topics including bad faith claims, reservation of rights, reimbursement of defense costs, and the application of contract exclusions in insurance policies. The blog also discusses litigation strategies and outcomes in insurance coverage cases across various jurisdictions, providing insights into how courts analyze and apply insurance law principles in complex factual scenarios.
Latest from Insurance Coverage Notes and Developments - Page 2
First Circuit Strictly Enforces Claims Made and Reported Policy Terms and Finds Actual Notice of Claim Insufficient to Excuse Failure to Comply With Notice Requirements
By Jeffrey Ward
The First Circuit has held, under Massachusetts law, that an insurer’s actual knowledge of a claim does not excuse the insured from reporting the claim to the insurer as required by the policy. President and Fellows of Harvard College v. Zurich…
Supreme Court Of Kentucky Permits Third-Party Bad Faith Claim To Proceed Against Insurer Before Final Adjudication Of Coverage
Note: This article was originally published by Law360 as an Expert Analysis column.
Like most jurisdictions, Kentucky follows the general rule that an insurance bad faith claim cannot be maintained against an insurance company when the underlying claim is not…
Eleventh Circuit Holds That Georgia Law Does Not Require Reimbursement of Defense Costs Paid Subject to a Reservation of Rights Absent Policy Language Requiring Reimbursement
By Jeffrey Ward
The Eleventh Circuit has held, in a matter of first impression under Georgia law, that a reservation of rights letter including a right to reimbursement did not entitle insurers to reimbursement of defense costs absent policy language expressly providing for…
Fourth Circuit Holds That Reverse Triangular Merger Was Acquisition of Insured Entity for Purpose of Subject D&O Policy’s Bump Up Provision
By Jeffrey Ward
The Fourth Circuit has held in a published decision that a 2015 reverse triangular merger between Willis Group Holdings plc (“Willis”) and Towers Watson & Co (“Towers Watson”) was “the acquisition of all or substantially all the ownership interest in…
Fourth Circuit Holds Government Investigation Costs Are Not Covered Under Lawyers Professional Liability Policy Because Search Warrant and Target Conflict Letters Are Not Claims Against An Insured
By Jeffrey Ward
The Fourth Circuit has held that an insurer correctly denied coverage for costs that the insured law firm and one of its attorneys incurred when the government investigated the attorney because neither a search warrant executed at the firm’s office…
Southern District of New York Holds Employment Practices Wrongful Act Exception to an Insured Versus Insured Exclusion Applied To Former CEO’s Claims, but That an Allocation Was Required
The Southern District of New York recently addressed a “Wrongful Employment Practices Act” exception to an Insured versus Insured (“IVI”) exclusion in In re Seabury FxOne LLC v. U.S. Specialty Ins., No. 21-cv-837, 2023 U.S. Dist. LEXIS 31255 (S.D.N.Y. Feb.…
Ninth Circuit Holds That California Insurance Code Section 533 Bars Indemnity Coverage for Employment Retaliation Claims
By Jeffrey Ward
The Ninth Circuit has held that California Insurance Code § 533 bars indemnity coverage for retaliation claims brought against the County of Sacramento Sheriff’s Department under California’s Fair Employment and Housing Act (“FEHA”). See County of Sacramento v. Everest National…
California Federal Court Holds That Settlement of Post-Merger Breach of Fiduciary Duty Claim Brought Against Acquired Company’s Directors Is Not Covered by Its D&O Policy
By Jeffrey Ward
A federal court in California recently held that a D&O policy issued to Ceradyne, Inc. affords no coverage for an $11.3 million settlement of breach of fiduciary duty claims alleging that Ceradyne’s directors undervalued the company and agreed to sell…
New York Federal Court Holds That Imposition of Criminal Sentence Is “Final Adjudication” Triggering Conduct Exclusions
By Jeffrey Ward
A federal court in New York recently addressed what constitutes a “final adjudication” triggering conduct exclusions. In Cumis Specialty Insurance Co. v. Kaufman, No. 21cv11107 (DLC), 2022 U.S. Dist. LEXIS 176535 (S.D.N.Y. Sept. 28, 2022), the court held that the…