Liability Insurance Posts

ALI Liability Insurance Restatement: Latest Happenings

While ALI postponed the vote on final approval of its “Restatement of the Law, Liability Insurance” until May 2018, at least seven courts have not let the lack of a bow on it stop them from citing it. In a few instances, the Restatement was relevant in the court’s decision. Translation: there is good reason to become familiar with the Restatement, even if it’s not officially in the books.

Liability Insurance Draft Cited

In a decision that discussed the issue of rescission of insurance contracts in cases of material misrepresentations in insurance applications by high-risk insureds, the Superior Court of the State of California, County of Los Angeles cited the Proposed Final Draft of Restatement of the Law, Liability Insurance.

Commercial Court upholds right of insurer to avoid policy for misrepresentation and non-disclosure

In Dalecroft Properties Ltd v. Underwriters [2017] EWHC 1263 (Comm), Mr. Richard Salter QC (sitting as a Deputy Judge of the High Court) confirmed the defendant insurers’ right to avoid a property insurance policy following various misrepresentations relating to the state of repair of the insured property and non-disclosures relating to acts of vandalism to the property.

Why Criticism Of ALI’s Insurance Restatement Is Valid

The saga of the proposed Restatement of the Law, Liability Insurance of the American Law Institute continued to unfold recently with the publication by the Restatement’s authors, professors Tom Baker and Kyle Logue, of their rebuttal to an article by professor George Priest critical of the proposed Restatement.

In Defense of the Restatement of Liability Insurance Law

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In a recent essay funded by the insurance industry, Yale Law Professor George Priest launched a strident critique of the Restatement project, arguing that the rules adopted in the Restatement (a) are radically contrary to existing case law, (b) have a naïve “pro-policyholder” bias that ignores basic economic insights regarding how insurance works, and (c) will, as a result of (a) and (b), lead to increases in liability insurance premiums and disruption in coverage, to the detriment of individuals and firms that need liability insurance. This essay argues that each of these claims is false.

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