Third Circuit Holds That Insured Must Satisfy All Conditions Precedent In Excess Policy To Trigger Coverage

The insured sought insurance coverage for defense costs and settlement of a putative class action under a tower of directors and officers liability insurance. One of the excess carriers denied coverage on the basis that the insured had not satisfied all conditions precedent to coverage under the excess policy at issue, which provided that "liability for any loss shall attach ... only after the Primary and Underlying Excess Insurers shall have [(1)] duly admitted liability and [(2)] ... paid the full amount of their respective liability."

The insured sued the excess insurer for coverage, and the parties moved for summary judgment. The trial court granted summary judgment in the excess insurer's favor, finding that the plain language of the excess policy at issue required the underlying insurers to admit liability as a condition precedent for coverage to attach. Because six of the underlying insurers had disclaimed liability, the insured could not satisfy at least one