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Insurance Coverage Litigation Newsletter - Winter 2021

Connecticut Decides Legal Uncertainty Triggers Duty to Defend by Jason E. Rusche, Esq - Whether an insurance carrier has a duty to defend it's insured in an underlying lawsuit is perhaps the most critical determination of a coverage investigation and can be a highly contested issue. Depending on the jurisdiction, a carrier’s wrongful denial of this duty can have substantial ramifications, including bad faith exposure and forfeiture of policy-based coverage defenses that would otherwise apply to limit or preclude indemnity coverage. For instance, when Connecticut law governs the interpretation of a liability policy, a carrier would be wise to consider the impact of a recent Connecticut Supreme Court, Nash St., LLC v. Main St. American AssuranceCo., No. SC 20389, 2020 Conn. LEXIS 197 (Conn. Jan. 14, 2020), before reaching a determination regarding its duty to defend.

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