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Excess 'Follow Form' Policy Obligations: Determined By Primary Policy, Not By Primary Insurer
Liability policies affording excess coverage as part of a multi-layer liability insurance program commonly 'follow form' to the program's primary policy. These follow form policies are generally subject to the same terms and provisions as are contained in the primary policy, with certain standard exceptions (e.g., provisions regarding limits of liability, premium, notice, etc.) and other provisions that may be unique to a particular insured or risk. It stands to reason that excess insurers, in order to properly evaluate and price a risk and in agreeing to cover it, would rely at least to some extent on the followed terms and provisions of the primary policy and on the expectation that such terms and provisions will be applied as written.
However, it is not uncommon for primary insurers to pay policy limits in situations where a loss is arguably not covered or where coverage is validly disputed under the primary policy's terms. A primary insurer may decide to pay in such situations for business reasons (e.g., to win a lucrative renewal, build goodwill with an insured or broker, avoid costly negotiation or litigation, or save its own excess policy higher up in the program) or perhaps because it concluded, based on its own mistaken interpretation of policy terms, that there is coverage. Such a decision may not always be consistent with the interests or interpretations of a follow form excess insurer, and an issue may arise as to whether the excess insurer is bound by the primary insurer's actions.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs
A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.