National Union Fire Insurance v. Travelers Insurance

KRAVITCH, Senior Circuit Judge:

In this appeal, we decide whether an excess insurer had a duty under Florida law, contractual or otherwise, to “drop down” and defend its insured prior to the cessation of the insured’s right to defense under its primary insurance policy. We interpret Florida law to determine the duties of an excess insurer exclusively by the terms of the contract with its insured. Under the terms of the contract at issue, we conclude that the excess insurer was not obligated to “drop down” and defend its insured.

■ I. BACKGROUND AND ■ PROCEDURAL HISTORY

Palm-Aire Oceanside, Inc.…