Harris v. Prudential Property & Casualty Insurance

WALSH, Justice:

In this appeal we address the question of whether, and to what extent, an insurer may invoke the cooperation clause of an automobile liability policy to limit the claim of a third party against an insured where liability coverage is mandated by law. The Superior Court ruled that where an insured fails to cooperate with a liability carrier in the defense of a claim, the insurer may not avoid its responsibility to respond in the minimum amount of liability coverage required under the Delaware Financial Responsibility Law but may disclaim coverage in excess of that amount. We…