Insurance 101 – Chapter 2 – Volume 3 – Duty of Primary Insurer to Excess Insurer

Duty of Primary Insurer to Excess Insurer

In excess and umbrella policies, courts imply, as they do in all insurance policies, a duty of good faith and fair dealing that neither party to a contract will do anything to impair or injure the other’s right to receive the benefits of their agreement. Excess insurers often, by their right of equitable subrogation, get involved in bad faith law suits. They claim that a primary insurer with exclusive control over the settlement of a claim against its insured, fails or refuses to settle within its policy limits because it allegedly placed its financial self-interest ahead of the insured’s interests.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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