Excess Policy Precludes Exhaustion By Below-Limit Settlement, Panel Affirms
(October 22, 2015, 12:14 PM EDT) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Oct. 21 held that an excess insurance policy unambiguously requires that the primary insurer actually pay its $10 million liability to the insured before excess coverage is triggered, affirming a lower court’s ruling in favor of the excess insurer in a coverage dispute arising from a stock-dilution lawsuit (Martin Resource Management Corp. v. Axis Insurance Co., No. 14-40512, 5th Cir.; 2015 U.S. App. LEXIS 18279).