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Insurance Law Alert, June 2012

06.11.12
This Alert addresses decisions relating to a non-settling insurer’s right to seek contribution from a settling insurer, the validity of a new exclusion in a renewal policy, and the scope of D&O coverage for acts performed by an insured executive in his personal capacity. It also discusses three noteworthy decisions relating to the duty to defend: the statute of limitations for a claim alleging breach of the duty to defend, an insurer’s forfeiture of the right to control a policyholder’s defense, and an insurer’s advancement of defense costs to individual insureds notwithstanding an order freezing the assets of the insured company. We also discuss a Florida Supreme Court decision rejecting common law first-party bad faith claims against an insurer, and a Texas Supreme Court decision categorizing stop-loss policies as direct insurance, rather than reinsurance. Finally, we address a decision enforcing a professional services exclusion and a discovery ruling rejecting the “selective waiver” of privilege in a bad faith action.  We hope you will continue to turn to the Alert for the latest developments in insurance and reinsurance law.