Responding to a certified question from the federal district court, the Colorado Supreme Court ruled that the umbrella/excess carrier was not responsible for the defense and indemnity of the insured when the primary carrier was rendered insolvent. A.R. Wilfley & Sons, Inc. v. Nat’l Union Fire Ins. Co. of Pittsburgh, PA, et al., 2026 Colo.
excess coverage
Colorado Court Addresses Cooperation Clause and Exhaustion of Auto Policies
By Tred R. Eyerly on
The Colorado Supreme Court encountered issues regarding the insured’s duty to cooperate and the exhaustion requirements in auto policies. USAA v. Wenzell, 2026 Colo. LEXIS 283 (Colo. April 27, 2026).
In 2017, Anthony Wenzell was rear-ended while driving. He had also been involved in a more serious crash in 2014 and required back surgery.
Insurer Entitled to Equitable Contribution from Other Insurer
By Tred R. Eyerly on
The federal district court found that the insurer paying the full settlement amount of the underlying case was entitled to equitable contribution from another insurer. Allstate Indem. Co. v. Fed. Ins. Co., 2026 U.S. Dist. LEXIS 33700 (S.D. Texas, Feb. 19, 2026).
The case involved a dispute arising out of the settlement of a…
Insured’s COVID-19 Claim Survives Insurers’ Motion for Summary Judgment under Some Policies
By Tred R. Eyerly on
After the lower court granted summary judgment to Omni Hotels and Resorts’ claim for coverage due to COVID-19 losses, the Texas Court of Appeals reversed, in part, based upon language in some of the insurers’ policies. TRT Holdngs, Inc. v. Ace Am. Ins. Co., 2025 Tex. App. LEXIS 7407 (Texas Ct. App. Sept. 18…
Hawaii Intermediate Court of Appeals Reverses Lower Court’s Dismissal of Insureds’ Claims Arising from Work-Related Death
By Tred R. Eyerly on
The court reversed dismissal of all claims against the insurers for a work-related death after determining that policy exclusions conflicted with statutory mandates on coverage. Waiau, et al. v. Hawaii Employers' Mut. Ins. Co, Inc., et al., 2024 Haw. App, LEXIS 583 (Haw. Ct. App., Dec. 31, 2014).
Amos K.
California Supreme Court Finds Vertical Exhaustion Applies to First-Level Excess Policies
By Tred R. Eyerly on
Addressing issues left open in its seminal decision in Montrose, the California Supreme Court found that the language in the first-level excess policies meant that the insured could access the policies upon exhaustion of the directly underlying policies purchased for the same policy period. Truck Ins. Exchange v. Kaiser Cement & Gypsum …
Excess Policy Not Triggered Despite Dissolution of Primary Carrier
By Tred R. Eyerly on
The excess carrier did to have to contribute to the defense and indemnity of the insureds because the dissolution of one of the primary carriers meant full exhaustion had not been accomplished. Continental Cas. Co., et al. v. Argonaut Ins. Co., et al., 331 Ore. App. 26 (Or. Ct. App. 2024).
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