Jenner & Block

Axis v. Northrop Highlights Premature Exhaustion Risks,” Law360

In the January Insurance Law Update, Jenner & Block Partner David M. Kroeger and Associate Caroline L. Meneau focus on the case of Axis Reinsurance Co. v. Northrop Grumman Corp.  The US District Court for the Central District of California ruled in favor of an excess insurer seeking to reduce its coverage obligation.  “This opinion highlights the importance of considering an excess insurer’s coverage positions when negotiating coverage with lower-level insurers,” the authors observe.  “Even when a policyholder successfully obtains coverage from a lower-level insurer, an excess insurer may seek to revisit that coverage decision.”  The ILU was published in Law360.