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Insurance Industry Pushing for Reimbursement After Disputed Claim

the insurance industry is now asking policyholders to pay their insurers back at the end of a disputed claim. Indeed, insurance carriers are pushing for recoupment of defense costs – a trend that merits a close watch from companies and risk management personnel.

State Appellate Courts Are Split - Insurance

New York s Second Department Splits From First Department - Insurance

New York s Second Department Splits From First Department - Insurance
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Outlier Decision of New York Appellate Court Denies Insurer s Right to Recoup Defense Costs Even Though Court Found No Duty to Indemnify | Carlton Fields

To embed, copy and paste the code into your website or blog: Recoupment of defense costs (defense fees and costs) by insurers in the absence of a duty to indemnify under a liability policy is an unsettled issue in many states. In a recent decision, a New York intermediate appellate court held that even though there was no duty to indemnify an underlying personal injury action under a CGL policy, the insurer could not recoup the defense costs it had advanced under a reservation of rights (ROR) letter where the policy at issue provided for a duty to defend but did not contain an express contractual provision allowing for the recoupment of such defense costs. This decision, however, by a court for one of four judicial departments in New York, is contrary to other state and federal decisions allowing recoupment under New York law and should be limited to its facts.

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