Policy Dictates Insurers' Right To Restitution: Utah Court

The Utah Supreme Court ruled Tuesday that an insurer cannot seek restitution from a policyholder unless a policy expressly allows it, giving a boost to a sports organization battling U.S. Fidelity and Guaranty Co. over a settlement in an underlying personal injury suit.
“The Supreme Court of Utah has made it crystal-clear that an insurance company cannot ignore the terms of the policy it sells to its policyholders and cannot invent convenient, new extracontractual rights for itself to avoid its above-policy-limits exposure,” said William G. Passannante of Anderson Kill & Olick PC, an attorney representing advocacy group United Policyholders, who filed an amicus brief in the case.

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D&O Insurance Attorney | Anderson Kill P.C.
William G. Passannante
New York

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