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
Chet A. Kronenberg
Partner
Simpson Thacher & Bartlett
Mr. Kronenberg, senior Los Angeles litigator, represents clients in a wide range of complex commercial litigation,... | Read More
Mr. Kronenberg, senior Los Angeles litigator, represents clients in a wide range of complex commercial litigation, including defending clients in consumer, employment, insurance and securities lawsuits, and government investigations. He has served as lead counsel for clients such as Aptive Environmental, Banc of California, Beazley Group, Blackstone, Citibank, KKR, L3 Technologies, LG Display, Lion Capital, Nature Home Flooring, Pinnacle Foods, SiriusXM Radio, Siris Capital, Vivint, Inc., Vivint Solar, Vivo Capital, Whittaker, Clark & Daniels and Yingli. Mr. Kronenberg has been recognized by The Legal 500 in multiple categories, including Securities Litigation, Insurance and Appellate. In addition, he has been named by Benchmark Litigation as a California “Litigation Star” and a “Labor & Employment Star.”
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Jerold (Jerry) Oshinsky
Attorney
Law Office of Jerry Oshinsky
Mr. Oshinsky has almost five decades of insurance coverage experience representing corporate and individual clients and... | Read More
Mr. Oshinsky has almost five decades of insurance coverage experience representing corporate and individual clients and educational and health care institutions. He continues to be regarded as “the foremost practitioner at the policyholder bar.” (Chambers, USA) Mr. Oshinsky also has been selected as an expert testifying witness and consultant for insurance companies in cases that do not present a conflict of interest with his policyholder clients. A good example of the scope of his practice is reflected in his decades of representation of a major life insurance company.
Best’s (2022) and Super Lawyer (2023) continue their recognition of Mr. Oshinsky as the leading policyholder lawyer in Los Angeles. Law Dragon also previously had selected him as a charter member of their Hall of Fame, which includes lawyers from all disciplines. Mr. Oshinsky continues as an arbitration panelist that has been deciding and issuing opinions for more than a decade. He also has served on a dozen or more arbitration panels where he was nominated by the insured and accepted by the insurance company.
Mr. Oshinsky continues to be a co-author of the insurance treatise titled Practitioner’s Guide to Litigating Insurance Coverage Actions. (Original publication date 1998. Recently updated 2022.) The unique approach of this treatise is that it provides real life examples of pleadings at every stage of litigation. The treatise is supplemented by his active participant as a lecturer on insurance coverage issues and the author of many articles and power points in the latest developments of insurance coverage law. Furthermore, Mr. Oshinsky's lifetime support of diversity and the law has resulted in a substantial number women attorneys having become leaders in their practice groups and managing partners and some have become respected members of the judiciary.
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