Alabama Supreme Court Affirms Primary/Excess Ruling Of Competing Insurance Clauses

Colony Ins. Co. v. Georgia Pacific, LLC. et. al. (Supreme Court of Alabama, July 31, 2009)

Insurer appealed from a summary judgment in favor of defendant insurer (Lumbermens) and it insured (Georgia-Pacific), in a declaratory judgment action seeking a declaration that Lumbermens was required to defend and indemnify Georgia-Pacific in an underlying lawsuit arising out of the death of a subcontractor’s employee who was killed while working on the roof of the Georgia-Pacific facility. Colony claimed that the coverage provided under both the Colony policy …

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District Court Determined That Product Defects Attributed to Manufacturer Were Not “Occurrences” Under Excess Policies

National Union Fire Insurance Co. of Pittsburgh PA.v. Gerling America Ins. al.

(United States District Court, Middle District of North Carolina, June 2, 2009)

This declaratory judgment action involved a declaration of the insurance obligation of various insurers in connection with underlying lawsuits alleging defects in impact-resistant window resins that the policyholder produced for various window and door manufacturers.  Specifically, National Union filed this action seeking a determination that it did not owe coverage under its umbrella policies on the basis that the

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High Court Reasons that Global Umbrella Policy Does Not Drop Down

Flexsys America LP v XL Insurance Company Ltd

[2009] EWHC 1115 (Comm) (20 May 2009)

The policyholder maintained that it exhausted its $1M limits under a primary policy issued by XL in Ohio. It then claimed tan XL global policy, with limits of $25M and subject to U.K. law, should apply to cover remaining expenses and claims. The court found that the "drop down" of excess policy was subject to a determination of whether the primary policy would apply to the particular claim. The excess insurer

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Rectification of insurance policies

Dunlop Haywards (DHL) Ltd (2)  Erinaceous Commercial Property Services Ltd -v- Erinaceous Insurance Services Ltd and (1) Lockton Companies International Ltd (2) MSI Corporate Capital Ltd & Others, [2009] EWCA Civ 354.8 (April  28, 2009)

The Court of Appeal considered the factual matters which may be taken into account by the courts in claims for rectification of insurance policies. The claimant insured alleged failure by the broker to arrange effective excess insurance coverage for the insured. An application was made by the defendant broker for …

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