Wise Insurer Settles Third Party Suit and then Resolves Coverage Issue by Declaratory Relief Action

Read the full article at https://www.linkedin.com/pulse/rfip-when-full-policy-read-court-common-sense-barry-zalma-esq-cfe and at https://zalma.com/blog plus more than 3500 posts.

It is the obligation of every liability insurer to protect the interests of its insured. When there is a coverage dispute it is best to resolve the negligence claim against the insured and then resolve the dispute by, after protecting the rights of the insured, resolving the coverage dispute by a suit for declaratory relief.

The insurer did that in Scottsdale Insurance Company,as successor in interest to Western Heritage Insurance Company v.  Charles Dylan Kuntz, Case No.: 2:19-cv-00113-JES-MRM, United States District Court Middle District Of Florida Fort Myers Division (December 3, 2020) 

ZALMA OPINION

Scottsdale should be commended for protecting its insured by effecting a settlement with the claimant and protecting its insured. Only after protecting the insured did it then litigate the issue of coverage with a potential of paying the claimant more, and resolved it to the benefit of both Scottsdale and its insured.