Exclusion lead-in language (resulting from)

The United States District Court for the Eastern District of North Carolina has held that, where all of a policyholder’s potential loss in the underlying action results from or is inextricably intertwined with excluded conduct—“alleged lack of good faith or unfair dealing”—there is no coverage for the claim.  Greenwich Ins. Co. v. Med. Mut. Ins. Co. of N.C., No. 5:14-cv-295-D (W.D.N.C. Jan. 27, 2015).  The court rejected the policyholder’s argument that allegations of negligence in the underlying complaint triggered the insurer’s duty to defend.  Wiley Rein represented the insurer.
Continue Reading Bad Faith Exclusion Bars Coverage for Bad Faith Failure to Settle Claim That Also Alleges Negligence