Restatement of the Law, Liability Insurance

Foreword

Reporters’ Preface

CHAPTER 1 -BASIC LIABILITY INSURANCE CONTRACT RULES

§ 1. Definitions

TOPIC 1 - INTERPRETATION

§ 2. Insurance Policy Interpretation

§ 3. The Plain-Meaning Rule

§ 4. Ambiguous Terms

TOPIC 2 - WAIVER AND ESTOPPEL

§ 5. Waiver

§ 6. Estoppel

TOPIC 3 - MISREPRESENTATION

§ 7. Misrepresentation

§ 8. Materiality Requirement

§ 9. Reasonable-Reliance Requirement

CHAPTER 2 - Management of Potentially Insured
Liability Claims

TOPIC 1 - DEFENSE

§ 10. Scope of the Right to Defend

§ 11. Confidentiality

§ 12. Liability of Insurer for Conduct of Defense

§ 13. Conditions Under Which the Insurer Must Defend

§ 14. Duty to Defend: Basic Obligations

§ 15. Reserving the Right to Contest Coverage

§ 16. The Obligation to Provide an Independent Defense

§ 17. The Conduct of an Independent Defense

§ 18. Terminating the Duty to Defend a Legal Action

§ 19. Consequences of Breach of the Duty to Defend

§ 20. When Multiple Insurers Have a Duty to Defend

§ 21. Insurer Recoupment of the Costs of Defense

§ 22. Defense-Cost-Indemnification Policies

§ 23. The Right to Associate in the Defense

TOPIC 2 - SETTLEMENT

§ 24. The Insurer’s Duty to Make Reasonable Settlement Decisions

§ 25. The Effect of a Reservation of Rights on Settlement Rights and Duties

§ 26. The Effect of Multiple Claimants on the Duty to Make Reasonable Settlement Decisions

§ 27. Remedies for Breach of the Duty to Make Reasonable Settlement Decisions

§ 28. Excess Insurer’s Right of Subrogation

TOPIC 3 - COOPERATION

§ 29. The Insured’s Duty to Cooperate

§ 30. Consequences of the Breach of the Duty to Cooperate

CHAPTER 3 - General Principles Regarding the Risks Insured

TOPIC 1 - COVERAGE

§ 31. Insuring Clauses

§ 32. Exclusions

§ 33. Timing of Events That Trigger Coverage

TOPIC 2 - CONDITIONS

§ 34. Conditions in Liability Insurance Policies

§ 35. Notice and Reporting Conditions

§ 36. Assignment of Rights Under a Liability Insurance Policy

TOPIC 3 - APPLICATION OF LIMITS, RETENTIONS, AND DEDUCTIBLES

§ 37. Policy Limits

§ 38. Number of Accidents or Occurrences

§ 39. Excess Insurance: Exhaustion and Drop Down

§ 40. Indemnification from Multiple Policies: The General Rule

§ 41. Allocation in Long-Tail Harm Claims Covered by Occurrence-Based Policies

§ 42. Contribution

§ 43. The Effect of Partial Settlements on Amounts Owed by Non-Settling Insurers

CHAPTER 4 - Enforceability and Remedies

TOPIC 1 - ENFORCEABILITY

§ 44. Implied-in-Law Terms and Restrictions

§ 45. Insurance of Liabilities Involving Aggravated Fault

§ 46. Insurance of Known Liabilities

TOPIC 2 - REMEDIES

§ 47. Remedies Potentially Available

§ 48. Damages for Breach of a Liability Insurance Policy

§ 49. Liability for Insurance Bad Faith

§ 50. Remedies for Liability Insurance Bad Faith

Index