Insurance Committee Brown Bag Lunch: SJC Question on Coverage

Insurance Bad Faith & Coverage Committee

Brown Bag Lunch

Monday March 20th at 12:30pm

To attend contact Bill Mekrut or Michael Aylward at 617-439-7556.

PRESENTERS:

Adam Doherty of Prince Lobel 

Kim Hartman of Nicolaides Thorpe (Chicago) 

They will discuss Great Divide v. Lexington Insurance, SJC-12164 argued in the SJC on March 6th.

Great Divide involves “other insurance” issues and the priority of auto insurance coverage for a fatal bicycle accident.   The SJC has been asked by Judge Stearns to answer the following question:

“Where there is a motor vehicle accident and the primary commercial automobile liability insurance policy issued to the owner of the vehicle involved in the accident is exhausted, what is the priority of coverage between (1) a second primary commercial automobile liability insurance policy insuring the driver of the vehicle, which contains an other insurance/non-owned vehicle clause providing (a) that, with respect to motor vehicles the insured owns, this insurance is primary, (b) that, with respect to motor vehicles the insured does not own, this policy is excess and (c) that "when this coverage form and any other coverage form or policy covers on the same basis, either excess or primary, we will pay only our share" and (2) a true excess liability insurance policy insuring the owner of the vehicle that contains an other insurance clause providing that "if other valid and collectible insurance applies to damages that are also covered by this policy, this policy will apply excess of the 'other insurance'"?.”