• New Decision Requiring Exhaustion of Underlying Insurance - Quellos Group LLC., v. Federal Insurance Company
  • November 26, 2013 | Authors: Kevin T. Coughlin; Michael E. Hrinewski
  • Law Firm: Coughlin Duffy LLP - Morristown Office
  • On November 12, 2013, the Court of Appeals of the State of Washington became the latest appellate court to find that excess insurance policy language that required actual payment of underlying insurance limits be followed in a less than policy limits settlement. In this action, the State’s intermediate appellate court affirmed the dismissal of a lawsuit by an insured against excess insurers, finding that the underlying policy had not properly been exhausted by a less than limits settlement by the primary insurer. As part of its decision the Court rejected an attempt by the insured to “bridge the gap” by self-funding the unpaid underlying limit.