American Guarantee & Liability Insurance v. United States Fidelity & Guaranty Co.

BYE, Circuit Judge.

This is a dispute between an excess and primary insurer, both of whom insured a trucking company whose tractor trailer was involved in a fatal traffic accident. Parties injured in the accident sued the trucking company and obtained a jury verdict which exposed the excess carrier to a seventeen million dollar liability. The excess carrier, American Guarantee and Liability Insurance Company (hereinafter Zurich), sued the primary carrier, United States Fidelity & Guaranty Company (USF & G), alleging bad faith in failing to settle the underlying claim within the policy limits.…