b

Short Answer Questions Continued (20 points total, point allocation noted below) A technology company purchases Commercial General Liability and Media Liability insurance policies from different insurers. The coverages provide reimbursement for defense costs and indemnity (e.g., settlements, judgments) in connection with covered losses. In reviewing the policies, however, the following Other Insurance provisions appear: Commercial General Liability: This Policy shall be primary and not seek contribution from any other valid and collectible insurance Media Liability: If there is other insurance covering the same loss that is covered: a) Under this policy, and b) Any other policy; Then this insurance will apply only as excess and in no event as contributing insurance, and then only after all other insurance has been exhausted, whether or not such insurance is collectible (a) How would you describe the Other Insurance language associated with the Commercial General Liability policy? How about the Media Liability policy? (10 points total, 5 points each) (b) Assume a lawsuit was filed against the technology company triggering a response under both policies? How would the policies respond to defense costs, in particular? (5 points) (c) Assume further that the Commercial General Liability policy provides reimbursement for defense costs (within limits) only. At the same time, the Media Liability policy provides defense and indemnity coverage for the loss. How might the Media Liability policy apply on a primary basis? (5 points) Short Answer Questions Continued (20 points total, point allocation noted below) A technology company purchases Commercial General Liability and Media Liability insurance policies from different insurers. The coverages provide reimbursement for defense costs and indemnity (e.g., settlements, judgments) in connection with covered losses. In reviewing the policies, however, the following Other Insurance provisions appear: Commercial General Liability: This Policy shall be primary and not seek contribution from any other valid and collectible insurance Media Liability: If there is other insurance covering the same loss that is covered: a) Under this policy, and b) Any other policy; Then this insurance will apply only as excess and in no event as contributing insurance, and then only after all other insurance has been exhausted, whether or not such insurance is collectible (a) How would you describe the Other Insurance language associated with the Commercial General Liability policy? How about the Media Liability policy? (10 points total, 5 points each) (b) Assume a lawsuit was filed against the technology company triggering a response under both policies? How would the policies respond to defense costs, in particular? (5 points) (c) Assume further that the Commercial General Liability policy provides reimbursement for defense costs (within limits) only. At the same time, the Media Liability policy provides defense and indemnity coverage for the loss. How might the Media Liability policy apply on a primary basis? (5 points)