As the Fifth Circuit reminded us in a December 21 de
cision, primary insurers can find themselves in excess insurers’ shoes if they reject settlement demands within their policy limits. In American Guaranty & Liability Insurance Co. v. ACE American Insurance Co., the Fifth Circuit upheld a lower court ruling requiring a primary insurer
One Day, Two Different Decisions: Mississippi and Texas Federal Courts Issue Opinions in COVID-19 Insurance Cases
Confirming the growing split of decisions among federal courts addressing COVID-19 insurance issues, two district courts in the Fifth Circuit differed in their interpretation of virus exclusions, with one denying coverage and the other permitting the policyholder’s claim to proceed.
On November 4, a Mississippi federal district court dismissed a restaurant’s complaint for business interruption
Insurers Beware: One Insurer’s Settlement Can Support a Bad Faith Failure-to-Settle Claim Against a Nonsettling Insurer
An insurer defending a claim against an insured that could exceed policy limits has a good faith obligation to settle the claim if possible. Failure to do so puts a nonsettling insurer at grave risk. An Eleventh Circuit Court of Appeals decision shows that one insurer’s response to a policy limits settlement opportunity can be