After a job-site injury left independent contractor Ernest Guthrie paralyzed below the waist, two insurers for the contractor that hired him agreed to pay the full policy limits — $1 million each — only one month after receiving a payment …
Insurers waited too long to intervene in anti-trust litigation that brought settlements requiring dozens of auto parts manufacturers to pay a total of $1.2 billion to resolve price-fixing allegations, a panel of the US 6th Circuit Court of Appeal ruled …
Every policyholder will likely face a scenario where its primary insurer refuses a settlement offer within limits. The primary insurer is potentially liable for that excess verdict if it acted in bad faith by refusing to settle within limits. Sometimes, …
California’s Ninth Circuit Court of Appeals finds that the absence of a litigated judgment did not preclude an equitable subrogation claim from being brought by an excess insurer for bad faith failure to settle when the excess insurer actually contributed …
Most jurisdictions have adopted equitable subrogation. Plitt & Plitt, Practical Tools for Handling Insurance Cases, § 7:7 (Thomson Reuters 2011) (Alaska, Arizona, California, Florida, Georgia, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Hampshire, New Jersey, New York, North Carolina, …
Most jurisdictions have held that an insurance company with the primary policy owes a duty of good faith and fair dealing to the insurance company with the excess policy requiring a settlement of claims within the primary carrier’s policy limits …