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Category Archives: Excess Coverage

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Excess Insurance Triggered Despite Policyholder’s Settlement with Primary Insurers for Less than Policy Limits

When faced with a catastrophic loss triggering multiple layers of coverage and recalcitrant insurers at the primary layer, a policyholder has strong incentives to settle with the first-layer carriers for less than the full limits of that layer, cover the “gap” out of its own pocket, and seek excess coverage from the insurers in the … Continue Reading

Policyholders Beware: New York Court Finds Policyholder Forfeited Excess Coverage By Settling With Underlying Carriers For Less Than Full Limits

Many excess insurance policies provide that coverage is not available unless all underlying insurers have first paid the full limits of their policies. Relying on such language, excess insurers argue that when a policyholder settles a claim with an underlying insurer for less than the full limits of their policy, the policyholder forfeits any coverage … Continue Reading
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