Insurance Law Alert, September 2012
This Alert discusses two recent rulings relating to the allocation of defense and indemnity costs among multiple insurers in the context of continuous injury or property damage spanning numerous policy periods. We also address decisions relating to late notice under a reinsurance policy, the scope of coverage under an advertising injury provision and application of a pollution exclusion to carbon monoxide claims. In addition, we summarize decisions relating to an insurer’s duty to notify its policyholder of the right to an explanation of damages in arbitration, and a fidelity insurer’s duty to indemnify the insured for the theft of funds from clients’ accounts. Finally, we discuss a Third Circuit ruling relating to bad faith claims against an insurer and an insurer’s duty to a defend a sanctions proceeding and claims initiated by the policyholder.