Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Category Archives: Estoppel

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Insured Not Prejudiced by Insurer’s Failure to Attend Settlement Meetings; Alaska Law Precluding Recoupment of Defense Costs Preempted by Federal Risk Retention Group Statute

Posted in Bad faith/duty to settle, Defense Costs, Estoppel
The Ninth Circuit Court of Appeals has reversed a district court’s denial of an insurer’s motion for summary judgment and held that the insurer, which was organized as a risk retention group, was entitled to reimbursement of defense costs incurred in defense of a non-covered claim because Alaska’s statutory bar against recoupment conflicts with the… Continue Reading

Insurer Not Estopped from Denying Coverage for Failing to Send Second Coverage Letter

Posted in Bad faith/duty to settle, Estoppel
Applying Massachusetts law, the United States District Court for the District of Massachusetts has held that an insurer is not estopped from denying coverage for a subsequent claim when it already issued a coverage letter for litigation based on the same facts and involving the same coverage issues. American Guar. & Liab. Ins. Co. v.… Continue Reading

Neither Bond Nor E&O Policy Covers Entity Losses from Employee Theft of Client Funds

Posted in Estoppel, Prior Knowledge/Warranty Exclusion
Applying Michigan law, the United States District Court for the Eastern District of Michigan has held that a fidelity bond did not provide coverage for an employee’s theft of client funds because the insured’s losses were suffered indirectly through reimbursing client losses. Hantz Fin. Servs., Inc. v. Nat’l Union Fire Ins. Co., 2015 WL 5460632… Continue Reading