Restatement of the Law,

Liability Insurance

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

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  •  
    Proposed Final Draft
    Proposed Final Draft
    474 pages, 2017, #1RLIPFD

    Project Status at a Glance  xii

    Foreword  xv

    Reporters’ Memorandum  xxi

    CHAPTER 1

    BASIC LIABILITY INSURANCE CONTRACT RULES

    § 1. Definitions  1

    Topic 1: Interpretation

    2. Insurance-Policy Interpretation  8

    § 3. The Presumption in Favor of the Plain Meaning of Standard-Form

         Insurance-Policy Terms  16

    § 4. Ambiguous Terms  30

    Topic 2: Waiver and Estoppel

    § 5. Waiver  47

    § 6. Estoppel  59

    Topic 3: Misrepresentation

    § 7. Misrepresentation  69

    § 8. Materiality Requirement  81

    § 9. Reasonable-Reliance Requirement  88

    CHAPTER 2

    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1: Defense

    § 10. Scope of the Right to Defend  101

    § 11. Confidentiality  105

    § 12. Liability of Insurer for Conduct of Defense  111

    § 13. Conditions Under Which the Insurer Must Defend  114

    § 14. Duty to Defend: Basic Obligations  124

    § 15. Reserving the Right to Contest Coverage  132

    § 16. The Obligation to Provide an Independent Defense  141

    § 17. The Conduct of an Independent Defense  147

    § 18. Terminating the Duty to Defend a Legal Action  153

    § 19. Consequences of Breach of the Duty to Defend  162

    § 20. When Multiple Insurers Have a Duty to Defend  174

    § 21. Insurer Recoupment of the Costs of Defense  182

    § 22. Defense-Cost-Indemnification Policies  191

    § 23. The Right to Associate in the Defense  198

    Topic 2: Settlement

    § 24. The Insurer’s Duty to Make Reasonable Settlement Decisions  205

    § 25. The Effect of a Reservation of Rights on Settlement Rights and Duties  222

    § 26. The Effect of Multiple Claimants on the Duty to Make Reasonable

           Settlement Decisions  236

    § 27. Damages for Breach of the Duty to Make Reasonable Settlement Decisions  239

    § 28. Excess Insurer’s Right of Subrogation  250

    Topic 3: Cooperation

    § 29. The Insured’s Duty to Cooperate  254

    § 30. Consequences of the Breach of the Duty to Cooperate  261

    CHAPTER 3

    GENERAL PRINCIPLES REGARDING THE RISKS INSURED

    Topic 1: Coverage

    § 31. Insuring Clauses  271

    § 32. Exclusions  273

    § 33. Timing of Events That Trigger Coverage  282

    Topic 2: Conditions

    § 34. Conditions in Liability Insurance Policies  294

    § 35. Consent or Approval of the Insurer as a Condition  299

    § 36. Notice and Reporting Conditions  303

    § 37. Assignment of Rights Under a Liability Insurance Policy  314

    Topic 3: Application of Limits, Retentions, and Deductibles

    § 38. Policy Limits  320

    § 39. Number of Accidents or Occurrences  322

    § 40. Excess Insurance: Exhaustion and Drop Down  329

    § 41. Indemnification from Multiple Policies: The General Rule  338

    § 42. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based Policies  345

    § 43. Contribution  365

    § 44. The Effect of Partial Settlements on Amounts Owed by Non-Settling Insurers  371

    CHAPTER 4

    ENFORCEABILITY AND REMEDIES

    Topic 1: Enforceability

    § 45. Implied-in-Law Terms and Restrictions  377

    § 46. Insurance of Liabilities Involving Aggravated Fault   380

    § 47. Insurance of Known Liabilities  390

    Topic 2: Remedies

    § 48. Remedies Potentially Available  398

    § 49. Damages for Breach of a Liability Insurance Policy  406

    § 50. Liability for Insurance Bad Faith  412

    § 51. Damages for Liability Insurance Bad Faith  420

    Appendix. Black Letter of Proposed Final Draft  429

    This draft contains all portions of the project: Ch. 1, Basic Liability Insurance Contract Rules; Ch. 2, Management of Potentially Insured Liability Claims; Ch. 3 General Principles Regarding the Risks Insured; and Ch. 4, Enforceability and Remedies. At the 2017 Annual Meeting, the following Sections were approved subject to the discussion at the Meeting and the usual editorial prerogative: §§ 36, 42-44, and all of Chapter 4, as well as revised §§ 13 and 24. The project will be submitted for final approval at a future Annual Meeting.

    474 pages, 2017, #1RLIPFDE

    Project Status at a Glance  xii

    Foreword  xv

    Reporters’ Memorandum  xxi

    CHAPTER 1

    BASIC LIABILITY INSURANCE CONTRACT RULES

    § 1. Definitions  1

    Topic 1: Interpretation

    2. Insurance-Policy Interpretation  8

    § 3. The Presumption in Favor of the Plain Meaning of Standard-Form

         Insurance-Policy Terms  16

    § 4. Ambiguous Terms  30

    Topic 2: Waiver and Estoppel

    § 5. Waiver  47

    § 6. Estoppel  59

    Topic 3: Misrepresentation

    § 7. Misrepresentation  69

    § 8. Materiality Requirement  81

    § 9. Reasonable-Reliance Requirement  88

    CHAPTER 2

    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1: Defense

    § 10. Scope of the Right to Defend  101

    § 11. Confidentiality  105

    § 12. Liability of Insurer for Conduct of Defense  111

    § 13. Conditions Under Which the Insurer Must Defend  114

    § 14. Duty to Defend: Basic Obligations  124

    § 15. Reserving the Right to Contest Coverage  132

    § 16. The Obligation to Provide an Independent Defense  141

    § 17. The Conduct of an Independent Defense  147

    § 18. Terminating the Duty to Defend a Legal Action  153

    § 19. Consequences of Breach of the Duty to Defend  162

    § 20. When Multiple Insurers Have a Duty to Defend  174

    § 21. Insurer Recoupment of the Costs of Defense  182

    § 22. Defense-Cost-Indemnification Policies  191

    § 23. The Right to Associate in the Defense  198

    Topic 2: Settlement

    § 24. The Insurer’s Duty to Make Reasonable Settlement Decisions  205

    § 25. The Effect of a Reservation of Rights on Settlement Rights and Duties  222

    § 26. The Effect of Multiple Claimants on the Duty to Make Reasonable

           Settlement Decisions  236

    § 27. Damages for Breach of the Duty to Make Reasonable Settlement Decisions  239

    § 28. Excess Insurer’s Right of Subrogation  250

    Topic 3: Cooperation

    § 29. The Insured’s Duty to Cooperate  254

    § 30. Consequences of the Breach of the Duty to Cooperate  261

    CHAPTER 3

    GENERAL PRINCIPLES REGARDING THE RISKS INSURED

    Topic 1: Coverage

    § 31. Insuring Clauses  271

    § 32. Exclusions  273

    § 33. Timing of Events That Trigger Coverage  282

    Topic 2: Conditions

    § 34. Conditions in Liability Insurance Policies  294

    § 35. Consent or Approval of the Insurer as a Condition  299

    § 36. Notice and Reporting Conditions  303

    § 37. Assignment of Rights Under a Liability Insurance Policy  314

    Topic 3: Application of Limits, Retentions, and Deductibles

    § 38. Policy Limits  320

    § 39. Number of Accidents or Occurrences  322

    § 40. Excess Insurance: Exhaustion and Drop Down  329

    § 41. Indemnification from Multiple Policies: The General Rule  338

    § 42. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based Policies  345

    § 43. Contribution  365

    § 44. The Effect of Partial Settlements on Amounts Owed by Non-Settling Insurers  371

    CHAPTER 4

    ENFORCEABILITY AND REMEDIES

    Topic 1: Enforceability

    § 45. Implied-in-Law Terms and Restrictions  377

    § 46. Insurance of Liabilities Involving Aggravated Fault   380

    § 47. Insurance of Known Liabilities  390

    Topic 2: Remedies

    § 48. Remedies Potentially Available  398

    § 49. Damages for Breach of a Liability Insurance Policy  406

    § 50. Liability for Insurance Bad Faith  412

    § 51. Damages for Liability Insurance Bad Faith  420

    Appendix. Black Letter of Proposed Final Draft  429

    This draft contains all portions of the project: Ch. 1, Basic Liability Insurance Contract Rules; Ch. 2, Management of Potentially Insured Liability Claims; Ch. 3 General Principles Regarding the Risks Insured; and Ch. 4, Enforceability and Remedies. At the 2017 Annual Meeting, the following Sections were approved subject to the discussion at the Meeting and the usual editorial prerogative: §§ 36, 42-44, and all of Chapter 4, as well as revised §§ 13 and 24. The project will be submitted for final approval at a future Annual Meeting.

     
  •  
    Tentative Draft No. 1 (Restatement 2016)
    Liability Insurance TD No. 1 PDF
    394 pages, 2016, #1RLITD1

    Foreword            xiii

    Reporters’ Memorandum            xix

    CHAPTER 1 BASIC LIABILITY INSURANCE CONTRACT RULES

    § 1. Definitions  1

    Topic 1: Interpretation

    § 2. Insurance Policy Interpretation         5

    § 3. The Presumption in Favor of the Plain Meaning of Standard-Form Insurance Policy Terms    13

    § 4. Ambiguous Terms   27

    Topic 2: Waiver and Estoppel

    § 5. Waiver         44

    § 6. Estoppel      56

    Topic 3: Misrepresentation

    § 7. Misrepresentation  66

    § 8. Materiality Requirement      78

    § 9. Reasonable-Reliance Requirement 85

    CHAPTER 2 MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1: Defense

    § 10. Scope of the Right to Defend           97

    § 11. Confidentiality        101

    § 12. Liability of Insurer for Conduct of Defense 107

    § 13. Conditions Under Which the Insurer Must Defend                110

    § 14. Duty to Defend: Basic Obligations  120

    § 15. Reserving the Right to Contest Coverage   128

    § 16. The Obligation to Provide an Independent Defense              136

    § 17. The Conduct of an Independent Defense  143

    § 18. Terminating the Duty to Defend a Legal Action        148

    § 19. Consequences of Breach of the Duty to Defend     158

    § 20. When Multiple Insurers Have a Duty to Defend      170

    § 21. Insurer Recoupment of the Costs of Defense          178

    § 22. Defense-Cost-Indemnification Policies        186

    § 23. The Right to Associate in the Defense          194

    Topic 2: Settlement

    § 24. The Insurer’s Duty to Make Reasonable Settlement Decisions         201

    § 25. The Effect of a Reservation of Rights on Settlement Rights and Duties          218

    § 26. The Effect of Multiple Claimants on the Duty to Make Reasonable Settlement Decisions     231

    § 27. Damages for Breach of the Duty to Make Reasonable Settlement Decisions              234

    § 28. Excess Insurer’s Right of Subrogation           245

    Topic 3: Cooperation

    § 29. The Insured’s Duty to Cooperate   249

    § 30. Consequences of the Breach of the Duty to Cooperate       256

    CHAPTER 3 GENERAL PRINCIPLES REGARDING THE RISKS INSURED

    Topic 1: Coverage

    § 31. Insuring Clauses     265

    § 32. Exclusions 267

    § 33. Timing of Events That Trigger Coverage       276

    § 34. Insurance of Liabilities Involving Aggravated Fault  287

    Topic 2: Conditions

    § 35. Conditions in Liability Insurance Policies      299

    § 36. Consent or Approval of the Insurer as a Condition 304

    § 37. Notice-of-Claim Conditions               308

    § 38. Assignment of Rights Under a Liability Insurance Policy        316

    Topic 3: Application of Limits, Retentions, and Deductibles

    § 39. Policy Limits             323

    § 40. Retentions and Deductibles             325

    § 41. Number of Accidents or Occurrences           328

    § 42. Excess Insurance: Exhaustion and Drop Down          335

    § 43. Indemnification from Multiple Policies: The General Rule   343

    § 44. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based  Policies                351

    § 45. Contribution [for discussion only]  369

    Appendix. Black Letter of Tentative Draft No. 1  375

    Tentative Draft No. 1 contains Chapter 1, Basic Liability Insurance Contract Rules; Chapter 2, Management of Potentially Insured Liability Claims; and Chapter 3, General Principles Regarding the Risks Insured. In response to motions, the Reporters agreed to revise §§ 13(3) and 34, and withdrew § 37 for redrafting. There was insufficient time to discuss §§ 44 and 45. Subject to the discussion at the Meeting and the usual editorial prerogative, the membership approved §§ 1-36 and 38-43 of this draft. Included with the draft are revisions the Reporters made to the material after the draft was printed, but before the material was put to a vote.

    394 pages, 2016, #1RLITD1E

    Foreword            xiii

    Reporters’ Memorandum            xix

    CHAPTER 1 BASIC LIABILITY INSURANCE CONTRACT RULES

    § 1. Definitions  1

    Topic 1: Interpretation

    § 2. Insurance Policy Interpretation         5

    § 3. The Presumption in Favor of the Plain Meaning of Standard-Form Insurance Policy Terms    13

    § 4. Ambiguous Terms   27

    Topic 2: Waiver and Estoppel

    § 5. Waiver         44

    § 6. Estoppel      56

    Topic 3: Misrepresentation

    § 7. Misrepresentation  66

    § 8. Materiality Requirement      78

    § 9. Reasonable-Reliance Requirement 85

    CHAPTER 2 MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1: Defense

    § 10. Scope of the Right to Defend           97

    § 11. Confidentiality        101

    § 12. Liability of Insurer for Conduct of Defense 107

    § 13. Conditions Under Which the Insurer Must Defend                110

    § 14. Duty to Defend: Basic Obligations  120

    § 15. Reserving the Right to Contest Coverage   128

    § 16. The Obligation to Provide an Independent Defense              136

    § 17. The Conduct of an Independent Defense  143

    § 18. Terminating the Duty to Defend a Legal Action        148

    § 19. Consequences of Breach of the Duty to Defend     158

    § 20. When Multiple Insurers Have a Duty to Defend      170

    § 21. Insurer Recoupment of the Costs of Defense          178

    § 22. Defense-Cost-Indemnification Policies        186

    § 23. The Right to Associate in the Defense          194

    Topic 2: Settlement

    § 24. The Insurer’s Duty to Make Reasonable Settlement Decisions         201

    § 25. The Effect of a Reservation of Rights on Settlement Rights and Duties          218

    § 26. The Effect of Multiple Claimants on the Duty to Make Reasonable Settlement Decisions     231

    § 27. Damages for Breach of the Duty to Make Reasonable Settlement Decisions              234

    § 28. Excess Insurer’s Right of Subrogation           245

    Topic 3: Cooperation

    § 29. The Insured’s Duty to Cooperate   249

    § 30. Consequences of the Breach of the Duty to Cooperate       256

    CHAPTER 3 GENERAL PRINCIPLES REGARDING THE RISKS INSURED

    Topic 1: Coverage

    § 31. Insuring Clauses     265

    § 32. Exclusions 267

    § 33. Timing of Events That Trigger Coverage       276

    § 34. Insurance of Liabilities Involving Aggravated Fault  287

    Topic 2: Conditions

    § 35. Conditions in Liability Insurance Policies      299

    § 36. Consent or Approval of the Insurer as a Condition 304

    § 37. Notice-of-Claim Conditions               308

    § 38. Assignment of Rights Under a Liability Insurance Policy        316

    Topic 3: Application of Limits, Retentions, and Deductibles

    § 39. Policy Limits             323

    § 40. Retentions and Deductibles             325

    § 41. Number of Accidents or Occurrences           328

    § 42. Excess Insurance: Exhaustion and Drop Down          335

    § 43. Indemnification from Multiple Policies: The General Rule   343

    § 44. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based  Policies                351

    § 45. Contribution [for discussion only]  369

    Appendix. Black Letter of Tentative Draft No. 1  375

    Tentative Draft No. 1 contains Chapter 1, Basic Liability Insurance Contract Rules; Chapter 2, Management of Potentially Insured Liability Claims; and Chapter 3, General Principles Regarding the Risks Insured. In response to motions, the Reporters agreed to revise §§ 13(3) and 34, and withdrew § 37 for redrafting. There was insufficient time to discuss §§ 44 and 45. Subject to the discussion at the Meeting and the usual editorial prerogative, the membership approved §§ 1-36 and 38-43 of this draft. Included with the draft are revisions the Reporters made to the material after the draft was printed, but before the material was put to a vote.

     
  •  
    Discussion Draft (Restatement 2015)
    Discussion Draft (Restatement 2015)
    268 pages, 2015, #1RLIDD

    Details -

    Foreword

    Reporters’ Memorandum

    Chapter 1 - Basic Liability Insurance Contract Rules

    § 1. Definitions

                Topic 1: Interpretation

    § 2. Insurance Policy Interpretation

    § 3. The Presumption in Favor of the Plain Meaning of Standard Form Insurance Policy Terms

    § 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 Claim

    § 19. Consequences of Breach of the Duty to Defend

    § 20. When Multiple Insurers Have a Duty to Defend a Claim

    § 21. Insurer Recoupment of the Costs of Defense

    § 22. Defense-Cost-Indemnification Policies

    § 23. The Right to Associate in the Defense of a Claim

    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. Damages 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

    Appendix A. Black Letter of Discussion Draft

    This draft contains substantially revised drafts of the two Chapters that the Institute approved in May 2013 and May 2014 as the Principles of the Law of Liability Insurance. In addition to many small revisions directed at fine-tuning and improving the clarity of the rules, there are also a substantial number of changes that reflect the new status of the project as a Restatement.

    It was submitted, for discussion only, at the 2015 Annual Meeting. As planned, no vote was taken.

    268 pages, 2015, #1RLIDDE

    Details -

    Foreword

    Reporters’ Memorandum

    Chapter 1 - Basic Liability Insurance Contract Rules

    § 1. Definitions

                Topic 1: Interpretation

    § 2. Insurance Policy Interpretation

    § 3. The Presumption in Favor of the Plain Meaning of Standard Form Insurance Policy Terms

    § 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 Claim

    § 19. Consequences of Breach of the Duty to Defend

    § 20. When Multiple Insurers Have a Duty to Defend a Claim

    § 21. Insurer Recoupment of the Costs of Defense

    § 22. Defense-Cost-Indemnification Policies

    § 23. The Right to Associate in the Defense of a Claim

    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. Damages 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

    Appendix A. Black Letter of Discussion Draft

    This draft contains substantially revised drafts of the two Chapters that the Institute approved in May 2013 and May 2014 as the Principles of the Law of Liability Insurance. In addition to many small revisions directed at fine-tuning and improving the clarity of the rules, there are also a substantial number of changes that reflect the new status of the project as a Restatement.

    It was submitted, for discussion only, at the 2015 Annual Meeting. As planned, no vote was taken.

     
  •  
    Tentative Draft No. 2 (Principles 2014)
    Tentative Draft No. 2 (Principles 2014)
    175 pages, 2014, #1PLLITD2

    Softbound  | 1PLLITD2  | 2014  | 175 pages  | $30.00 

    Project Status at a Glance
    Foreword
    Reporters’ Memorandum

    CHAPTER 2
    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1. Defense

    [Sections 12-15 have been approved by Council and Membership]

    § 12. Scope of the Right to Defend
    § 13. Confidentiality
    § 14. Vicarious Liability
    § 15. Conditions Under Which the Insurer Must Defend

    [Sections 16-34 have been approved by Council]

    § 16. Duty to Defend: Basic Obligations
    § 17. Reserving the Right to Contest Coverage
    § 18. The Obligation to Provide an Independent Defense
    § 19. The Conduct of an Independent Defense
    § 20. Terminating the Duty to Defend a Claim
    § 21. Consequences of Ordinary Breach of the Duty to Defend
    § 22. When Multiple Insurers Have a Duty to Defend a Claim
    § 23. Exceptions to Joint Obligation When Multiple Insurers Have a Duty to Defend
    § 24. Insurer Reimbursement for the Costs of Defense
    § 25. Defense-Cost Indemnification Policies
    § 26. The Right to Associate in the Defense of a Claim

    Topic 2. Settlement

    § 27. The Liability Insurer’s Duty to Make Reasonable Settlement Decisions
    § 28. The Effect of a Reservation of Rights on Settlement Rights and Duties
    § 29. The Effect of Multiple Claimants on the Duty to Make Reasonable 
             Settlement Decisions
    § 30. Damages for Breach of the Duty to Make Reasonable Settlement Decisions
    § 31. Assignment of a Claim for Breach of the Duty to Settle
    § 32. Excess Insurers’ Right of Subrogation

    Topic 3. Cooperation

    § 33. The Insured’s Duty to Cooperate
    § 34. Consequences of the Breach of the Duty to Cooperate

    Appendix A. Black Letter of Tentative Draft No. 2
    Appendix B. Other Relevant Black-Letter Text

    This draft covers Chapter 2, Management of Potentially Insured Liability Claims §§ 12-34.

    Sections 12-15 of Chapter 2 were approved by the membership at the 2013 Annual Meeting subject to the discussion at the Meeting and to editorial prerogative; §§ 16- 34 of Chapter 2 were approved by the membership at the 2014 Annual Meeting subject to the discussion at the Meeting and to editorial prerogative.

    175 pages, 2014, #1PLLITD2E

    Softbound  | 1PLLITD2  | 2014  | 175 pages  | $30.00 

    Project Status at a Glance
    Foreword
    Reporters’ Memorandum

    CHAPTER 2
    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS

    Topic 1. Defense

    [Sections 12-15 have been approved by Council and Membership]

    § 12. Scope of the Right to Defend
    § 13. Confidentiality
    § 14. Vicarious Liability
    § 15. Conditions Under Which the Insurer Must Defend

    [Sections 16-34 have been approved by Council]

    § 16. Duty to Defend: Basic Obligations
    § 17. Reserving the Right to Contest Coverage
    § 18. The Obligation to Provide an Independent Defense
    § 19. The Conduct of an Independent Defense
    § 20. Terminating the Duty to Defend a Claim
    § 21. Consequences of Ordinary Breach of the Duty to Defend
    § 22. When Multiple Insurers Have a Duty to Defend a Claim
    § 23. Exceptions to Joint Obligation When Multiple Insurers Have a Duty to Defend
    § 24. Insurer Reimbursement for the Costs of Defense
    § 25. Defense-Cost Indemnification Policies
    § 26. The Right to Associate in the Defense of a Claim

    Topic 2. Settlement

    § 27. The Liability Insurer’s Duty to Make Reasonable Settlement Decisions
    § 28. The Effect of a Reservation of Rights on Settlement Rights and Duties
    § 29. The Effect of Multiple Claimants on the Duty to Make Reasonable 
             Settlement Decisions
    § 30. Damages for Breach of the Duty to Make Reasonable Settlement Decisions
    § 31. Assignment of a Claim for Breach of the Duty to Settle
    § 32. Excess Insurers’ Right of Subrogation

    Topic 3. Cooperation

    § 33. The Insured’s Duty to Cooperate
    § 34. Consequences of the Breach of the Duty to Cooperate

    Appendix A. Black Letter of Tentative Draft No. 2
    Appendix B. Other Relevant Black-Letter Text

    This draft covers Chapter 2, Management of Potentially Insured Liability Claims §§ 12-34.

    Sections 12-15 of Chapter 2 were approved by the membership at the 2013 Annual Meeting subject to the discussion at the Meeting and to editorial prerogative;  §§ 16- 34 of Chapter 2 were approved by the membership at the 2014 Annual Meeting subject to the discussion at the Meeting and to editorial prerogative.

     
  •  
    Tentative Draft No. 1 (Principles 2013)
    Tentative Draft No. 1 (Principles 2013)
    161 pages, 2013, #1PLLITD1

    Softbound  | 1PLLITD1  | 2013  | 161 pages  | $30.00 

    Foreword
    Reporters’ Memorandum

    CHAPTER 1
    BASIC LIABILITY INSURANCE CONTRACT PRINCIPLES

    § 1. Definitions
    Topic 1. Interpretation
    § 2. Insurance Policy Interpretation
    § 3. The Presumption in Favor of the Plain Meaning of Standard Form Insurance Policy Terms
    § 4. Ambiguous Terms
    Topic 2. Waiver and Estoppel
    § 5. Waiver
    § 6. Estoppel
    Topic 3. Misrepresentation
    § 7. Misrepresentation
    § 8. Intentional or Reckless Misrepresentation by Policyholder
    § 9. Reasonable Detrimental Reliance Requirement
    § 10. Materiality Requirement
    § 11. Remedy for Misrepresentations That Are Neither Reckless Nor Intentional

    CHAPTER 2
    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS
    Topic 1: Defense
    § 12. Scope of the Right to Defend
    § 13. Confidentiality
    § 14. Vicarious Liability
    § 15. Conditions Under Which the Insurer Must Defend
    § 16. Duty to Defend: Basic Obligations
    § 17. Reserving the Right to Contest Coverage
    § 18. The Obligation to Provide an Independent Defense
    § 19. The Conduct of an Independent Defense
    § 20. Terminating the Duty to Defend a Claim
    § 21. Consequences of Ordinary Breach of the Duty to Defend
    § 22. When Multiple Insurers Have a Duty to Defend a Claim
    § 23. Exceptions to Joint Obligation When Multiple Insurers Have a Duty to Defend

    Appendix. Black Letter of Tentative Draft No. 1

    This draft covers Chapter 1, Basic Liability Insurance Contract Principles §§ 1-11, and Chapter 2, Management of Potentially Insured Liability Claims §§ 12-23. Chapter 1 and §§ 12-15 of Chapter 2 were approved by the membership at the 2013 Annual Meeting.

    161 pages, 2013, #1PLLITD1E

    Softbound  | 1PLLITD1  | 2013  | 161 pages  | $30.00 

    Foreword
    Reporters’ Memorandum

    CHAPTER 1
    BASIC LIABILITY INSURANCE CONTRACT PRINCIPLES

    § 1. Definitions
    Topic 1. Interpretation
    § 2. Insurance Policy Interpretation
    § 3. The Presumption in Favor of the Plain Meaning of Standard Form Insurance Policy Terms
    § 4. Ambiguous Terms
    Topic 2. Waiver and Estoppel
    § 5. Waiver
    § 6. Estoppel
    Topic 3. Misrepresentation
    § 7. Misrepresentation
    § 8. Intentional or Reckless Misrepresentation by Policyholder
    § 9. Reasonable Detrimental Reliance Requirement
    § 10. Materiality Requirement
    § 11. Remedy for Misrepresentations That Are Neither Reckless Nor Intentional

    CHAPTER 2
    MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS
    Topic 1: Defense
    § 12. Scope of the Right to Defend
    § 13. Confidentiality
    § 14. Vicarious Liability
    § 15. Conditions Under Which the Insurer Must Defend
    § 16. Duty to Defend: Basic Obligations
    § 17. Reserving the Right to Contest Coverage
    § 18. The Obligation to Provide an Independent Defense
    § 19. The Conduct of an Independent Defense
    § 20. Terminating the Duty to Defend a Claim
    § 21. Consequences of Ordinary Breach of the Duty to Defend
    § 22. When Multiple Insurers Have a Duty to Defend a Claim
    § 23. Exceptions to Joint Obligation When Multiple Insurers Have a Duty to Defend

    Appendix. Black Letter of Tentative Draft No. 1

    This draft covers Chapter 1, Basic Liability Insurance Contract Principles §§ 1-11, and Chapter 2, Management of Potentially Insured Liability Claims §§ 12-23. Chapter 1 and §§ 12-15 of Chapter 2 were approved by the membership at the 2013 Annual Meeting.

     
  •  
    Discussion Draft (Principles 2012)
    Discussion Draft (Principles 2012)
    78 pages, 2012, #1PLLIDD1

    Softbound  | 1PLLIDD1  | 2012  | 78 pages  | $25.00 

    CHAPTER 1
    BASIC LIABILITY INSURANCE CONTRACT PRINCIPLES

    § 1. Definitions

    Topic 1. Interpretation
    § 2. Insurance Policy Interpretation
    § 3. Objectives of Interpretation of Liability Insurance Policies
    § 4. The Presumption in Favor of the Plain Meaning of Standard Form   Insurance Policy Terms
    § 5. Ambiguous Terms

    Topic 2. Waiver and Estoppel
    § 6. Waiver
    § 7. Estoppel

    Topic 3. Misrepresentation
    § 8. Misrepresentation
    § 9. Materiality Requirement
    § 10. Reasonable Detrimental Reliance Requirement
    § 11. Intentional or Reckless Misrepresentation by Insured
    § 12. Remedy for Misrepresentations That Are Neither Reckless Nor Intentional
    § 13. Severability
    § 14. Commercial Liability Insurance Policies

    Appendix. Black Letter of Discussion Draft

    This draft covers Chapter 1, Basic Liability Insurance Contract Principles. It was submitted, for discussion only, at the 2012 Annual Meeting.

    78 pages, 2012, #1PLLIDD1E

    Softbound  | 1PLLIDD1  | 2012  | 78 pages  | $25.00 

    CHAPTER 1
    BASIC LIABILITY INSURANCE CONTRACT PRINCIPLES

    § 1. Definitions

    Topic 1. Interpretation
    § 2. Insurance Policy Interpretation
    § 3. Objectives of Interpretation of Liability Insurance Policies
    § 4. The Presumption in Favor of the Plain Meaning of Standard Form   Insurance Policy Terms
    § 5. Ambiguous Terms

    Topic 2. Waiver and Estoppel
    § 6. Waiver
    § 7. Estoppel

    Topic 3. Misrepresentation
    § 8. Misrepresentation
    § 9. Materiality Requirement
    § 10. Reasonable Detrimental Reliance Requirement
    § 11. Intentional or Reckless Misrepresentation by Insured
    § 12. Remedy for Misrepresentations That Are Neither Reckless Nor Intentional
    § 13. Severability
    § 14. Commercial Liability Insurance Policies

    Appendix. Black Letter of Discussion Draft

    This draft covers Chapter 1, Basic Liability Insurance Contract Principles. It was submitted, for discussion only, at the 2012 Annual Meeting.