Resolving Insurers' and Insureds' Settlement Dilemmas When Policy Limits Are Insufficient: Multiple Insured and Multiple Claims
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss how an insurer's duty to settle may be impacted by two difficult but recurring situations: (1) when multiple claimants are competing for insufficient policy limits against an insured, and (2) when claimants from a single occurrence will release fewer than all of multiple insureds sharing the same limit of liability. The panel will review strategies for resolving the claims while avoiding bad faith litigation.
Outline
- Multiple claimants and insufficient policy limits
- First come, first served
- Settle as many as possible
- Settle based on the severity of the injury
- Prorate proceeds based on some formula
- Multiple insureds and insufficient funds to release all
- "Majority" view
- "Minority" view
- Interpleader
- Impact on the excess carrier
Benefits
The panel will review critical issues, such as:
- Should the insurer settle with multiple claimants on a "first come, first serve" basis, settle the most severe claims first, or attempt to "pro-rate" settlements with all claimants?
- What can be done if fewer than all potential claimants assert claims or file suit?
- Does exhaustion of the policy limits through settlements terminate the duty to defend the insured?
- Should the interpleader of the policy proceeds be considered?
Faculty
Jonathan M. Stern
Counsel
Schnader Harrison Segal & Lewis
Mr. Stern is counsel in the Litigation Department and a member of the Aviation, Insurance Services, and Appellate... | Read More
Mr. Stern is counsel in the Litigation Department and a member of the Aviation, Insurance Services, and Appellate Groups. His practice focuses on aerospace-related litigation, including civil rights cases against airlines, insurance coverage and claims handling matters involving aerospace insurance, and personal injury and wrongful death litigation involving aviation products or aviation operations.
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Jerold Oshinsky
Partner
Kasowitz Benson Torres
Mr. Oshinsky has more than 30 years of experience litigating insurance recovery cases in federal and state courts... | Read More
Mr. Oshinsky has more than 30 years of experience litigating insurance recovery cases in federal and state courts throughout the U.S. on behalf of Fortune 500 companies and others in the chemical, pharmaceutical, financial, food, education and health industries. He litigates some of the most significant, complex insurance coverage issues in the country, applying theories which he developed that have guided insurance recovery law since its inception. Mr. Oshinsky also advises clients about how to maximize their insurance assets, and he is frequently selected as a party-appointed arbitrator in complex insurance coverage disputes.
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David W. Overstreet
Partner
Earhart Overstreet
Mr. Overstreet focuses his practice on commercial litigation and professional liability. He spends a significant amount... | Read More
Mr. Overstreet focuses his practice on commercial litigation and professional liability. He spends a significant amount of time representing businesses and professionals in civil suits, including attorneys. Mr. Overstreet also speaks to groups including insurers, law schools, and organized professional associations about claim avoidance and mitigation.
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