The United States District Court for the Southern District of New York has held that an insurer has a duty to defend its insured’s subsidiary in a class action lawsuit that alleges wrongful conduct that occurred prior to the parent’s acquisition of the subsidiary, rejecting the insurer’s argument that the policies’ “Related Acts” definition precluded coverage. Great Am. Ins. Co. v. AIG Specialty Ins. Co., 2021 WL 1268450 (S.D.N.Y. Apr. 6, 2021).
Continue Reading Wrongful Acts Alleged in Class Action Based on Corporate Policy Are Not “Related Acts”

An Illinois appellate court has held that a professional liability insurer has a duty to defend suits seeking only declaratory and injunctive relief, even though the suits did not allege potentially covered damages.  MHM Correctional Servs., Inc. v. Evanston Ins. Co., 2021 WL 689525 (Ill. Ct. App. Feb. 23, 2021).

Continue Reading Insurer Has Duty to Defend Suits Seeking Only Declaratory and Injunctive Relief

A Kentucky federal court has held that an Insured v. Insured (IvI) exclusion that included an assistance exception precluded coverage for an entire lawsuit brought by both insureds and non-insureds and that no allocation was required.  Tarter v. Navigators Ins. Co., 2021 WL 149302 (E.D. Ky. Jan. 15, 2021).

Continue Reading Insured-versus-Insured Exclusion Precludes Coverage For Entire Suit Brought by Insureds and Non-Insureds

The United States District Court for the Northern District of California has held that, in an action to rescind a professional liability policy, a triable issue of fact existed regarding whether an insured misrepresented or concealed information in connection with obtaining insurance where the insured did not have express notice of the clients’ dissatisfaction with his services and it was not otherwise obvious that a claim might be filed against him when he applied for the policy. Am. Alternative Ins. Corp. v. Warner, 2020 WL 6204924 (N.D. Cal. Oct. 22, 2020). In denying the insurer’s motion for summary judgment, the court noted that evidence of an increase in premiums is sufficient to establish materiality under California law.

Continue Reading Whether Insured Misrepresented or Concealed Information in Application is a Fact Issue for Trial