November 18, 2020 Feature

Rules of Policy Interpretation Reflect Lingering Policyholder Bias in the ALI’s Restatement of the Law, Liability Insurance

Laura A. Foggan and Rachael Padgett
GettyImages.com/morningarage/iStock

GettyImages.com/morningarage/iStock

When faced with an insurance issue that is covered by the RLLI, check your jurisdiction’s law first to determine whether it conflicts with the restatement rule.

The American Law Institute (ALI) published the Restatement of the Law, Liability Insurance (RLLI) in June 2019, amid substantial controversy.1 Much of that controversy centered on whether the RLLI’s provisions reflect established majority insurance law rules or whether and how often they reflect aspirational proposals to create new rules or alter the law, without appropriate legal support.2 Concerns that the RLLI proposes innovative rules that seek to change settled insurance law were sharpened by the recognition that courts traditionally look to ALI restatements as a reliable reference reflecting the state of the common law.

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