Liability Insurance Posts
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 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.
As a follow up to our post on the Council Draft text of this section, we now present the test from the Proposed Final Draft of Section § 24 – The Insurer’s Duty to Make Reasonable Settlement Decisions.
As a continuation of our post series that includes content of ALI drafts, we now include Section 42 – Allocation in Long-Tail Harm Claims Covered by Occurrence-Based Policies.
Notice requirements in liability insurance policies typically require that notice of a claim or lawsuit be given as soon as practicable and in writing to the insurance company. While the exact language differs from policy to policy, the concept of written notice to the insurance company without delay is fairly common.
A draft legal document that could have a profound impact on American law involving liability insurance has some critics and the document’s authors in near total disagreement over whole sections of the draft, and even its overall objective.
A. Hugh Scott of Choate focuses on the Restatement of the Law, Liability Insurance project, which was topic of panel discussion at the Insurance Coverage and Practice Symposium.
At its January 2017 meeting, the Council took several actions concerning project drafts.
The project specifically uses the phrase “duty to make reasonable settlement decisions,” rather than “duty to settle.” The Reporters use this phrase to emphasize that “duty to settle” is not entirely accurate; rather, there is a duty to make reasonable decisions in relation to settlement.
When it comes to insurance coverage for cyber risks, uncertainty continues to reign supreme. Cyber liability insurance is constantly evolving, and while dozens of insurers currently offer a cyber liability product, coverages are not standard from policy to policy.