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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.
The Allmerica Financial Case
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?