CAS Exam 6C Fall 2018, Question 8
Study guide: Exam 6C
In each of the following scenarios, explain a likely outcome for the insurance company and cite any relevant precedent used to support the conclusion drawn.
Part a (1 point)
A journalist is insured by a $500,000 limit professional liability policy with a primary insurer and a $5.5 million excess professional liability policy from an excess insurer. The journalist is being sued for $4 million for defamation after an article he wrote. The excess insurer is denying the payment of defense costs. The primary insurer sues the excess insurer claiming it has a duty to defend.
Part b (1 point)
An insurer received notice of a third party claim resulting from pollutants arising out of an insured fire that occurred at its British Columbia premises where the insured conducted its business. The insurer is denying the duty to defend, since pollutants are excluded from the policy. The insured sues the insurer for denying its duty to defend.
Answer this question and see the worked solution