Alaska High Court: State Law Prohibits Enforcement Of Reimbursement Provision

(March 29, 2016, 12:39 PM EDT) -- ANCHORAGE, Alaska — In response to two certified questions from the Ninth Circuit U.S. Court of Appeals, the Supreme Court of Alaska on March 25 held that state law prohibits enforcement of a policy provision entitling a professional liability insurer to reimbursement of fees and costs that it incurred in defending underlying claims pursuant to a reservation of rights even when it was later determined that the claims are excluded from coverage and the insurer’s duty to defend never arose under the policy (Attorneys Liability Protection Society Inc. v. Ingaldson Fitzgerald, P.C., f/k/a Ingaldson, Maassen & Fitzgerald, P.C., No. S-15683, Alaska Sup.; 2016 Alas. LEXIS 39)....

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