Last week, my partner, Syed Ahmad, commented on some of the biggest insurance rulings of the year in a Law360 feature article that can be found here. Among those decisions is USAA Texas Lloyd’s Co. v. Menchaca, where the Texas Supreme Court ruled that that policyholders may recover for bad faith in
Hunton Insurance Practice Head Walter Andrews Quoted on Confusion to Result from Rapid-American Excess Exhaustion Decision
Hunton & Williams’ insurance practice head, Walter Andrews, was quoted in a Law360 article yesterday regarding the confusion that is likely to result from a federal bankruptcy judge’s decision in Rapid-American Corp. v. Travelers Casualty and Surety Co., where the court concluded that a majority of excess insurers owe no coverage to Rapid-American…
Federal Bankruptcy Judge Says No Excess Coverage in New York Until Underlying Limits Exhausted Through Payment of Claims
Two of three of Rapid-American Corp.’s excess liability insurers do not have to respond to underlying asbestos claims unless and until all underlying coverage is exhausted by the payment of claims, says Judge Bernstein of the United States Bankruptcy Court for the Southern District of New York in a June 7, 2016 decision. Rapid-American has been involved in asbestos litigation since 1974 and settled disputes with many of its underlying insurers, but an amount sufficient to reach its excess coverage policies has not yet been paid. Rapid-American argued that it was not necessary for the primary policies’ underlying limits to be exhausted by actual payment before insurers’ excess liability coverage attaches.
Continue Reading Federal Bankruptcy Judge Says No Excess Coverage in New York Until Underlying Limits Exhausted Through Payment of Claims