Article ID: 193b8aa72146cbbdba8740f442cac3ade1c33c05dc88dd3ec5d7543f26623ef6
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: bs4_heuristic
URL: https://www.businessinsurance.com/chubb-unit-neednt-cover-insolvent-insurers-gap-colorado-court/
Body Text
Chubb unit needn’t cover insolvent insurer’s gap: Colorado court - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Chubb unit needn’t cover insolvent insurer’s gap: Colorado court by Richard Sine Coverage Disputes , P/C Insurers Chubb Sep 22, 2026 A unit of Chubb is not required to pick up defense and liability costs left behind when one of an industrial manufacturer’s other insurers went insolvent, the Colorado Supreme Court ruled Monday. The unanimous decision, A.R. Wilfley & Sons, Inc. v. National Union Fire Insurance Company of Pittsburgh, PA, was issued Monday by the Colorado Supreme Court in Denver, answering a question certified by the U.S. District Court for the District of Colorado. Federal Insurance is a Chubb subsidiary. A.R. Wilfley & Sons, a century-old pump manufacturer based in Commerce City, Colorado, has faced decades of asbestos-related injury lawsuits. Its primary insurance coverage came from two insurers: Great Northern Insurance, whose policy limits were exhausted through settlements, and Reliance Insurance, which became insolvent and can no longer pay claims. Sitting above both in Wilfley’s coverage tower were umbrella and excess policies from Federal. When Reliance stopped paying, Wilfley argued Federal’s policies should drop down and cover the gap, since Federal had agreed to cover any occurrence “not covered” by primary policies listed on its schedule. The court disagreed. “‘Not covered,’ as used in those policies, addresses the scope of coverage, not the collectibility of payment,” opinion author Justice Carlos A. Samour wrote. Wilfley’s theory “would at once convert Federal into a financial guarantor of every scheduled underlying insurer — a risk Federal neither agreed to assume nor charged a premium to cover — and relieve Wilfley of its responsibility to maintain underlying coverage through a solvent carrier of its own choosing,” the judge wrote. The decision puts Colorado in line with courts in other states that have decided that “the insolvency of a scheduled primary insurer does not alter an umbrella/excess insurer’s obligations,” the judge said. The ruling also overruled, in part, a 1989 Colorado Court of Appeals decision, Deisch & Marion, P.C. v. International Insurance Co., that Wilfley had relied on, saying its contrary reasoning did not bind the court. The case returns to the federal district court for further proceedings consistent with the ruling. Related News Arcadian unveils US excess casualty cover, names exec September 22, 2026 Crane safety report highlights communication, training gaps September 22, 2026 N.Y. bill would increase penalties for unpaid comp medical bills September 22, 2026 Judge rules for Sompo unit in COVID cover fight September 22, 2026 CRC introduces Insurisk Cyber coverage September 22, 2026 Sonic operator wins arbitration appeal in worker’s fatal shooting September 22, 2026 US businesses invest more in cyber insurance, security controls September 22, 2026 Axis hires former Navigators casualty head September 22, 2026 Tower lifts reinsurance cover at lower cost September 22, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
Metadata (JSON)
{
"score": 13.65
}