Liability Insurance Posts

ALI Liability Insurance Restatement – Final Approval Delayed: What It Means

It had been expected by many that, after seven years of arduous work, The American Law Institute’s (ALI) “Restatement of the Law, Liability Insurance” would be approved on Tuesday, May 23 at the Institute’s Annual Meeting at The Ritz-Carlton Hotel in Washington, D.C. But, despite expectations, no white smoke bellowed from the luxury hotel’s chimney.

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

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.

Notice to Carrier Means Notice to Carrier

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.