No Excess Insurance Drop Down When Primary Goes Belly Up

Law360, New York (January 13, 2016, 2:41 PM EST) -- Louis H. Kozloff

Colin B. Willmott Excess and umbrella insurers have cause for concern when an underlying primary insurer is insolvent. This problem often presents itself in long-tail asbestos and environmental claims under pre-1990s policies because of the many insolvencies caused by exposure to these claims. The cause for concern is the risk that a court will require an excess insurer to “drop down” and provide coverage that should have been provided by the now-insolvent primary insurer. An unanticipated drop down that was not contemplated when issuing an excess policy is an anathema to an excess insurer. Excess insurance is designed...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!