Changes To The Interpretation Of Excess Insurance Coverage Provisions

In Portland School Dist. v. Great American Insurance Co., 241 Or App 161, 249 P3d 148 (2011), the Oregon Court of Appeals announced two new rules that will have far-reaching application and will upset well established interpretation of excess insurance coverage.

First, the court determined that typical following form language in an excess policy is ambiguous and does not incorporate the underlying policy's anti-assignment clause. Second, the court concluded that an agreement executed before entry of judgment purporting to make a future assignment of claims against the excess insurer after entry of judgment, does not extinguish the insurer's liability as to the assigned claims.

The Facts