Liability policies affording excess coverage as part of a multi-layer liability insurance program commonly 'follow form' to the program's primary policy.
Excess 'Follow Form' Policy Obligations: Determined By Primary Policy, Not By Primary Insurer
A recent decision by the Supreme Judicial Court of Massachusetts appears to be the first to squarely address whether or not an excess insurer is bound to a primary insurer's coverage and settlement decisions by virtue of the 'follow form' nature of the excess policy. The court, relying in part on legal decisions upholding the separate and independent nature of primary and excess insurance contracts (and the rights and responsibilities under each), held that follow form excess insurers are not so bound.
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