The Supreme Court of Texas recently affirmed summary judgment in favor of an insurer in a declaratory judgment action, holding that the allegations in the underlying complaint against its insured did not fall within the coverage provided by the insurance policy.  Pine Oak Builders, Inc. v. Great American Lloyds Ins. Co., No. 06-0867 (Tex. February 13, 2009). 

The Fifth Circuit recently affirmed a District Court decision holding that coverage for subsidiary “corporations” does not ordinarily include limited liability companies.  American Electric Power Company Inc., et al. v. Affiliated FM Insurance Company, No. 07-31061 (5th Cir. Jan. 21, 2009). 

The U.S. Court of Appeals for the Third Circuit recently held that an insurance carrier properly filed an interpleader complaint against policyholders to determine the distribution of $100,000 in life insurance proceeds.  Prudential Ins. Co. of Am. v. Hovis, et al., — F.3d –, (3d Cir. Jan. 27, 2009). 

California’s Court of Appeal for the Fourth District has held that an insured is entitled to stack policy limits of all applicable policies when there is a continuous loss spanning multiple policy periods and policy provides for payment of “all sums” that insured becomes liable to pay, State of California v. Continental Insurance Company.