Indiana’s “Lease Statute” can’t be used to determine priority of insurance coverage between primary insurance policy and true excess policies

To access case, press here

Old Republic Insurance Company (“Old Republic”) appeals the trial court’s order denying Old Republic’s motion for summary judgment and granting summary judgment to RLI Insurance Company (“RLI”), The Insurance Company of the State of Pennsylvania (“ISOP”), First Specialty Insurance Corporation (“First Specialty”), and Debra Boboruzian. Old Republic raises two issues for our review, which we restate as the following issue: whether I.C. 27-8-9-9 (Indiana’s “Lease Statute”) may be applied to determine the priority of insurance coverage between a primary insurance policy and true excess policies.
Conclusion (slip op. at 17): In sum, we hold that I.C. 27-8-9-9 applies only to determine the priority of coverage between or among policies affording the same level of coverage. Here, the Old Republic Policy provides primary coverage, while the RLI Excess Policy, the ISOP Umbrella Policy, and the First Specialty Excess Policy each offer true excess coverage. Thus, the Lease Statute cannot be applied to prioritize the Excess Insurers’ policies ahead of the Old Republic Policy. The trial court did not err in holding that I.C. 27-8-9-9 is inapplicable to Old Republic’s declaratory judgment action and in granting summary judgment to the Excess Insurers. Affirmed.

About Bose McKinney & Evans LLP

Bose McKinney & Evans LLP is a business law firm, headquartered in Indianapolis, Indiana, serving both publicly held and privately held businesses, governmental entities and high-growth industries. Our clients include Fortune 100 companies, international manufacturers, national and regional financial institutions, agribusinesses, sports teams, university-incubated start-ups, media, utilities, cities and schools, to name a few. We strive to build strong relationships with our clients as key business advisors, to exceed expectations in the quality of our work, to be knowledgeable about our clients’ businesses and sectors, to be responsive to service needs and to continually seek to improve the delivery of client services. Our ultimate focus is on our clients.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s