Setting A Framework For Disgorgement Insurance Disputes

By Catherine Doyle and Jan Larson (September 11, 2018, 2:27 PM EDT) -- In a recent decision, In re: TIAA-CREF Insurance Appeals, the Delaware Supreme Court struck a blow to insurers seeking to avoid responsibility for settlement payments made by the policyholder under claims that such payments constitute uninsurable disgorgements. This development further shapes the complicated landscape of coverage disputes over disgorgement issues and supports the pro-policyholder proposition that exclusions must be construed narrowly. Although this particular opinion was decided by the high court of Delaware court under New York law, it opens the door to a fact-specific analysis that may serve as a means to confirm coverage for other policyholders facing similar insurer denials. We encourage policyholders to use this opinion as footing to advance similar arguments against broad, undefined public policy exclusions....

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