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Avoiding the Excess Layers

By William P. Shelley and Samantha Evans
November 16, 2012

Several courts have recently held that an insured bears the burden of demonstrating proper exhaustion of underlying policies, including where multiple policies are involved in a settlement. These decisions have prevented insureds from accessing millions of dollars in excess coverage based on the unambiguous exhaustion language included in the operative excess policies.

The Citigroup Case

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