Insurers Not Entitled To Paid Defense Costs: Pa. Court

Law360, New York (August 18, 2010, 5:49 PM EDT) -- The Pennsylvania Supreme Court has affirmed a finding that American & Foreign Insurance Co., Royal Insurance Co. of America and others are not entitled to reimbursement of defense costs expended before a court found they had no duty to defend a policyholder.

The state's high court said Tuesday it would be inconsistent with Pennsylvania law to permit the reimbursement of defense costs expended prior to a court’s determination of coverage if an insurance contract is silent about those costs.

“It would amount to a retroactive erosion...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.