✉news WorldLaw & Courts first seen 19 h ago, last 1 h ago, peak #12
Colorado Supreme Court Rejects Coverage Rule for Insolvent Insurers
Original: Colorado Supreme Court rejects "drop down" coverage for insolvent insurer
The Colorado Supreme Court has ruled against the 'drop down' doctrine, declining to require an insolvent insurer's excess policies to drop down and cover claims when the primary insurer cannot pay. The decision limits policyholders' ability to seek recovery from higher-layer insurers when a lower-layer carrier becomes insolvent, a ruling with significant implications for insurance coverage disputes in the state.
Why now: The ruling clarifies how insurance liabilities are allocated when a primary insurer is insolvent, affecting policyholders and insurers alike.
Colorado Supreme CourtReed Smith
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