Flexsys America LP v XL Insurance Company Ltd
 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 was not precluded from asserting that the claims should not be covered under the primary policy. The court was persuaded that the claims against the policyholder were not covered and therefore determined that the global policy should not drop down.
Posted by Sharon Angelino and Joanna Roberto