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Insurance in the Know (Part 2): Settlement Offers Within Policy Limits Heighten Scrutiny on Insurers

Parties to a lawsuit may have vastly different perspectives on the validity and value of a claim, but as a matter of course, the issue of settlement will arise. Trial is an exceedingly expensive endeavor with an uncertain...more

Under Pressure: Primary Insurer Must Reimburse Excess Insurer after Failing to Settle Case in Texas

As the Fifth Circuit reminded us in a December 21 decision, primary insurers can find themselves in excess insurers’ shoes if they reject settlement demands within their policy limits. In American Guaranty & Liability...more

Insurers Beware: One Insurer’s Settlement Can Support a Bad Faith Failure-to-Settle Claim Against a Nonsettling Insurer

An insurer defending a claim against an insured that could exceed policy limits has a good faith obligation to settle the claim if possible. Failure to do so puts a nonsettling insurer at grave risk. An Eleventh Circuit...more

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