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Case Citations [i] (Spring 2026)

handle is hein.ali/aliliabil9936 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Spring 2026 Citations LIABILITY INSURANCE CHAPTER 2. MANAGEMENT OF POTENTIALLY INSURED LIABILITY CLAIMS TOPIC 1. DEFENSE § 19. Consequences of Breach of the Duty to Defend Del.2025. Quot. in ftn. Administrator of Texas Medicaid program sued its primary and excess liability insurers, alleging that insurers breached their duties to defend and indemnify administrator for a settlement in an underlying breach-of-contract action filed against it by the State of Texas. After trial, the trial court granted administrator's motion to set aside the jury verdict and request for a new trial. This court affirmed, holding that insurers' breach of duty in refusing to defend administrator against the underlying action excused administrator's contractual obligation to cooperate and seek consent from insurers before settling the action. The court reasoned that an insured could make a reasonable settlement and was then entitled to reimbursement for the settlement from an insurer, even if the policy purported to avoid liability for settlements made without the insurer's consent, because, under New York law and Restatement of Liability Insurance § 19, an insurer forfeited the right to assert any control over the defense or settlement of an action that it breached its duty in refusing to defend. AIG Specialty Insurance Company v. Conduent State Healthcare, LLC, 339 A.3d 680, 687. CHAPTER 3. GENERAL PRINCIPLES REGARDING THE RISKS INSURED TOPIC 1. COVERAGE § 33. Timing of Events That Trigger Coverage Del.2025. Quot. in ftn. Insured pharmaceutical company sued primary and excess insurers under two sets of claims-made director-and-officer-liability policies covering different time periods, seeking a declaration that an underlying securities class action filed against insured by its stockholders was a claim made during the second period of coverage and was unrelated to insured's notice during the first period of coverage of an investigation by the Securities and Exchange Commission (SEC) into its improper COPYRIGHT C2026 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.