Kan. Court Upholds Coverage For Drilling Equipment Dealer

Law360, New York (February 21, 2014, 5:33 PM EST) -- A Kansas appellate court on Friday held two Zurich Insurance Group Ltd. units responsible for covering a drilling equipment distributor sued over a soured deal, ruling that the duty to defend is controlled by the state law where an insurance policy was created, rather than where it was performed.

Resolving a conflict of precedents in the state, the intermediate Kansas Court of Appeals unanimously concluded that a carrier’s duty to defend presents a question of policy interpretation rather than performance. As such, defense coverage is governed...
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