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Insurance Contracts And Judicial Discord Over Whether Liability Insurers Must Defend Insureds’ Allegedly Intentional And Immoral Conduct: A Historical And Empirical Review Of Federal And State Courts’ Declaratory Judgments—1900–1997, Willy E. Rice

Faculty Articles

Each year in America, an estimated $200 billion is spent purchasing third-party liability insurance. Fairly recent findings reveal that although some carriers try to settle third-party claims, an unacceptable number of liability companies simply refuse to settle or defend third-party suits. Each year, thousands of consumers and insurers petition state and federal courts for declaratory relief. The simple question asked in these cases is: do liability insurers have a duty to defend policyholders when third-party complainants only allege that insureds committed immoral or intentional acts?

Plaintiffs’ lawyers, defense counsels, state and federal judges, and state legislators and insurance commissioners should …