Under Pressure: Primary Insurer Must Reimburse Excess Insurer after Failing to Settle Case in Texas
By EsqSocial Corporation 20/01/21
As the Fifth Circuit reminded us in a December 21 decision, primary insurers can find themselves in excess insurers’ shoes if they reject settlement demands within their policy limits. In American Guaranty & Liability Insurance Co. v. ACE American Insurance Co., the Fifth Circuit upheld a lower court ruling requiring a primary insurer that rejected a $2 million policy-limits demand to pay the entire judgment because “a prudent insurer would have accepted” the settlement demand....
By: Bradley Arant Boult Cummings LLP