Liability Insurance

Restatement of the Law,

This work addresses the complex rules adopted and applied by the courts in insurance coverage litigation.

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500+ pages, 2019, #1RLIOT
This Restatement covers the law of contracts in the liability insurance context, liability insurance coverage, and the management of insured liabilities. The text reveals the extent to which the field of liability insurance evolved from its conceptual building blocks, rooted in the contractual agreement between insurer and insured, to address knotty questions of risk allocation governing decisions such as under what circumstances an insurer’s duty to defend its insured is triggered; how to balance an insurer’s right to control the defense with the policyholder’s right to a confidential relationship with counsel; when an insurer must accept a settlement offer from a claimant suing a policyholder; and when a policyholder may settle without insurer approval.
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Foreword
Reporters’ Preface
CHAPTER 1 -BASIC LIABILITY INSURANCE CONTRACT RULES
§ 1. Definitions
TOPIC 1 - INTERPRETATION
§ 2. Insurance Policy Interpretation
§ 3. The Plain-Meaning Rule
§ 4. Ambiguous Terms
TOPIC 2 - WAIVER AND ESTOPPEL
§ 5. Waiver
§ 6. Estoppel
TOPIC 3 - MISREPRESENTATION
§ 7. Misrepresentation
§ 8. Materiality Requirement
§ 9. Reasonable-Reliance Requirement
CHAPTER 2 - Management of Potentially Insured
Liability Claims
TOPIC 1 - DEFENSE
§ 10. Scope of the Right to Defend
§ 11. Confidentiality
§ 12. Liability of Insurer for Conduct of Defense
§ 13. Conditions Under Which the Insurer Must Defend
§ 14. Duty to Defend: Basic Obligations
§ 15. Reserving the Right to Contest Coverage
§ 16. The Obligation to Provide an Independent Defense
§ 17. The Conduct of an Independent Defense
§ 18. Terminating the Duty to Defend a Legal Action
§ 19. Consequences of Breach of the Duty to Defend
§ 20. When Multiple Insurers Have a Duty to Defend
§ 21. Insurer Recoupment of the Costs of Defense
§ 22. Defense-Cost-Indemnification Policies
§ 23. The Right to Associate in the Defense
TOPIC 2 - SETTLEMENT
§ 24. The Insurer’s Duty to Make Reasonable Settlement Decisions
§ 25. The Effect of a Reservation of Rights on Settlement Rights and Duties
§ 26. The Effect of Multiple Claimants on the Duty to Make Reasonable Settlement Decisions
§ 27. Remedies for Breach of the Duty to Make Reasonable Settlement Decisions
§ 28. Excess Insurer’s Right of Subrogation
TOPIC 3 - COOPERATION
§ 29. The Insured’s Duty to Cooperate
§ 30. Consequences of the Breach of the Duty to Cooperate
CHAPTER 3 - General Principles Regarding the Risks Insured
TOPIC 1 - COVERAGE
§ 31. Insuring Clauses
§ 32. Exclusions
§ 33. Timing of Events That Trigger Coverage
TOPIC 2 - CONDITIONS
§ 34. Conditions in Liability Insurance Policies
§ 35. Notice and Reporting Conditions
§ 36. Assignment of Rights Under a Liability Insurance Policy
TOPIC 3 - APPLICATION OF LIMITS, RETENTIONS, AND DEDUCTIBLES
§ 37. Policy Limits
§ 38. Number of Accidents or Occurrences
§ 39. Excess Insurance: Exhaustion and Drop Down
§ 40. Indemnification from Multiple Policies: The General Rule
§ 41. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based Policies
§ 42. Contribution
§ 43. The Effect of Partial Settlements on Amounts Owed by Non-Settling Insurers
CHAPTER 4 - Enforceability and Remedies
TOPIC 1 - ENFORCEABILITY
§ 44. Implied-in-Law Terms and Restrictions
§ 45. Insurance of Liabilities Involving Aggravated Fault
§ 46. Insurance of Known Liabilities
TOPIC 2 - REMEDIES
§ 47. Remedies Potentially Available
§ 48. Damages for Breach of a Liability Insurance Policy
§ 49. Liability for Insurance Bad Faith
§ 50. Remedies for Liability Insurance Bad Faith
Index
Material # - 42640810