Interesting Discussion-Only Debate on Insurance Restatement

Council member Gary Sasso, left, leads a discussion on the Restatement of Liability Insurance project as Reporter Tom Baker responds to comments and questions.

Council member Gary Sasso, left, leads a discussion on the Restatement of Liability Insurance project as Reporter Tom Baker responds to comments and questions.

The Annual Meeting is in the midst of a detailed discussion of the Insurance project, which has recently shifted from a Principles to a Restatement. The Reporters have made significant changes to the document in light of the shift to a Restatement. So far, the principal controversy has been Section 19, which adopts the minority position among the states – that a breach of the duty to defend forfeits all coverage defenses. Several members have compellingly argued that this has the effect of granting the insured coverage which it hasn’t contracted or paid for and urged reconsideration of the draft’s position.
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