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ARTICLE · 03 OCTOBER 2005

Insurance Law Update - August 2005

Highlighting notable court decisions affecting the Insurance Industry.

United StatesInsurance

Contents

  • California Supreme Court Affirms Insurers’ Right to Reimbursement – By Joseph Pelochino
    • Massachusetts Supreme Court Addresses Insurance Requirements for Employee Leasing Companies – By Vanessa O’Brien
    • Claims of Abuse and Bodily Injury Considered Separate Occurrences – By Lisa Henderson
    • Illinois Court Upholds Denial of Coverage for Defective Construction Claim – By James Pinkstaff

    The California Supreme Court held that an insurer may obtain reimbursement of all defense costs expended under a reservation of rights when it is determined that no claim in the underlying action raised a potential for coverage. In Scottsdale Ins. Co. v. MV Transportation, 2005 WL 1712889 (Cal., July 25, 2005), the insured, MV Transportation, was sued by a third party and tendered the defense to its insurer, Scottsdale Insurance Company. Scottsdate advanced the costs of defending MV in the underlying action, but did so under a reservation of its right to recoup costs expended in the

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