“As Reported” Exclusion Applies to Claims Reported as of Policy Effective Date In July, the Seventh Circuit, in an opinion written by Circuit Judge Barrett, reversed the district court and entered summary judgment in favor of the insurer.  At that time, the Seventh Circuit found the “as reported” language in the policy at issue precluded coverage for the underlying lawsuit,... Read More

“Annual” Pilot Training Cannot Be Completed During Policy Term if Not Completed in Previous Policy Years The Illinois First District Appellate Court, in an opinion written by Justice Gordon, applying Illinois law, reversed the lower court’s ruling that damage to an insured’s airplane was covered by a specialty insurance policy.  The lower court reasoned that coverage existed because it found... Read More

Umbrella Not Triggered by $20M Consent Judgment Which Also Violated Voluntary Payments and No Action Clauses The United States District Court for the Eastern District of Tennessee, applying Tennessee law, found no breach of contract and held that the umbrella insurer had no liability for a $20 million Consent Judgment because the underlying was not exhausted prior to the entering... Read More

$8M Water Damage Reformation Claim Withstands Motion to Dismiss The United States District Court for the Northern District of Illinois, applying Illinois law, in an opinion written by Judge John Z. Lee, held that Travelers Indemnity Company (“Travelers”) may be responsible for damage caused to eight floors of the Pittsfield Building (the “Building”) in downtown Chicago even though owner of... Read More

No Aggregate Limits for Long-Tail Environmental Claims If Policy Not Rated on Renumeration Basis A trial court in Michigan, applying Michigan law, held that the primary comprehensive general liability insurance policies at issue did not contain aggregate limits for long-tail environmental insurance claims. From 1951 to 1987, Tecumseh Products Company, LLC (“Tecumseh”) had primary general liability policies from Travelers Indemnity Company,... Read More

Excess Policy Sublimit Applies for Wrongful Death Claim The Seventh Circuit, in an opinion written by Judge Easterbrook, applying Illinois law, upheld a district court decision that found an excess insurance policy’s $250,000 sublimit for physical abuse claims applied to a wrongful death action. In the underlying action, Baby Fold, a foster-care service provider, placed three-year-old Kianna Rudesill with foster parents... Read More

Appraisal Action is a Covered Securities Claim and Pre-Judgment Interest Part of “Loss” The Superior Court of Delaware, applying Delaware law, determined that an appraisal action constitutes a “Securities Claim” under a Directors’ and Officers’ (“D&O”) insurance policy.  The court also found that pre-judgment interest might be covered under a D&O policy pending the appropriate fact scenario. Solera Holdings, Inc. (“Solera”)... Read More

Former Parent Cannot Cut Off Former Subsidiaries’ Coverage Via Settlement – Travelers Ordered to Defend The United States District Court for the Northern District of Illinois, in an opinion written by Judge Gettleman, applying Illinois law, held that Travelers Indemnity Company and Travelers Casualty and Surety Company (together “Travelers”) must defend Magnetek, Inc. (“Magnetek”), the successor to policies issued by... Read More

No Breach of Contract for Excess Carrier’s Failure to Settle Despite $45M Verdict The United States District Court for the Southern District of Florida, applying Florida law, held that neither the cooperation clause nor the duty to defend includes a duty to settle.  Therefore, the district court granted the insurer’s motion for summary judgment with regard to the breach of contract claims against it for... Read More