Executive Summary Blog

Executive Summary Blog

Legal developments affecting professional liability insurers

Tag Archives: Pennsylvania

Failure of Insured to Provide Timely Notice Under Claims-Made Policy Bars Suit Against Insurer of Bankrupt Insured

Posted in Bankruptcy, Notice of Claim
The United States Court of Appeals for the Third Circuit, applying Pennsylvania law, has held that an insured’s failure to provide timely notice of a claim under a claims-made policy barred coverage for that suit.  Frazier v. Exide Techs., No. 17-2399, 2018 WL 2727396 (3d Cir. June 6, 2018).… Continue Reading

Letter Outlining Objections to Excessive Legal Fees Constitutes “Claim”

Posted in “Claim”
Applying Pennsylvania law, a federal district court has held that an insurer had no duty to defend or indemnify a judgment for excessive legal fees because a court-ordered letter predating the policy period and previewing objections to the insured law firm’s fees was a “claim” first made prior to the policy’s inception.  Allied World Ins.… Continue Reading

No Coverage Available Under Crime Policy for Losses Not Discovered “During the Policy Period”

Posted in Loss
The United States District Court for the Eastern District of Pennsylvania has held that where an occurrence-based crime policy covers only losses discovered “during the Policy Period,” no coverage is available for losses discovered after the policy period concluded, despite the fact that a prior policy issued to the insured contained a discovery period extending… Continue Reading

No Duty to Defend Claim Seeking Return of Premiums Based on Policy Exclusion

Posted in Premiums
The United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that a professional liability insurer has no duty to defend an insured insurance agency against a claim seeking return of premium payments pursuant to an exclusion in the policy barring coverage for any claim to recover premiums.  TRI-ARC Fin.… Continue Reading

No Coverage Available for Lawsuit Served on Insured after End of Extended Reporting Period

Posted in “Claim”
The Philadelphia County Court of Common Pleas, applying Pennsylvania law, has granted summary judgment in favor of an insurer, holding that coverage under a claims-made-and-reported policy is unavailable where an insured is not served with the lawsuit during the policy period or extended reporting period.  Wolf v. Liberty Ins. Underwriters, Inc., 2016 Phila. Ct. Com.… Continue Reading

“Reasonable Expectations” Doctrine Inapplicable Due to Unambiguous Effective and Retroactive Dates

Posted in Reasonable expectations, Retroactive Date
The United States District Court for the Eastern District of Pennsylvania has held that a lawyer was not entitled to insurance coverage because he could not reasonably expect that his malpractice policy would provide coverage for acts occurring three months prior to the effective and retroactive date of the policy.  Downey v. First Indemnity Ins.,… Continue Reading

One Lawsuit Equals One Claim, Regardless of the Number of Causes of Action

Posted in Related Claims and associated exclusions
The United States District Court for the Eastern District of Pennsylvania has held that a lawyer’s professional liability policy’s per-claim limit of liability, rather than its aggregate limit of liability, applied to an underlying lawsuit because the suit’s multiple causes of action were all related and therefore constituted a single claim under the policy. Westport Ins.… Continue Reading

Claim for Trademark-Infringing Telephone Scam Not Interrelated with Claim for Internet Scam

Posted in Allocation, Cooperation, Other: Trademark Exclusion, Related Claims and associated exclusions
The United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, has held that a telephone marketing scam and an internet false advertising scam were not interrelated wrongful acts precluding coverage because the conduct behind the alleged wrongful acts was different. Connect America Holdings, LLC v. Arch Ins. Co., 2016 WL 1254073… Continue Reading

Court Holds Insurer Can Allocate Settlements

Posted in Allocation, Bad faith/duty to settle, Breach of Contract – coverage for amounts due pursuant to contract, exclusions, Loss
A federal district court in Pennsylvania has upheld an insurer’s right to allocate settlements between covered and non-covered amounts and affirmed the insurer’s substantive allocation of two settlements. United Nat’l Ins. Co. v. Indian Harbor Ins. Co., No. 14-6425 (E.D. Pa.). Wiley Rein represented the insurer.… Continue Reading