Excess Insurer Must Cover Claims on First Dollar Basis, Judge Says

NEW ORLEANS - A federal judge has ordered an excess insurer to pay "up front" for claims asserted against an asbestos defendant, stating that an ambiguity in the policy must be resolved in the insured's favor by interpreting the policy as one against liability rather than of only indemnity. TIG Insurance Co., et al. v. Eagle Inc., et al., No. 05-179 (E.D. La.).

The March 19 order of the U.S. District Court for the Eastern District of Louisiana also said that The Gray Insurance Co. must bear first dollar responsibility for Eagle Inc.'s defense costs because Eagle's exhausted underlying policies …