Old Republic Insurance Company v. Underwriters Safety and Claims

OPINION

RICHARD MILLS, District Judge.

Gregory McCord, an employee of the City of Louisville, sustained a serious injury on the job in 1987. The City was self-insured up to a $250,000 retention limit for workers’ compensation liability, and carried an excess-liability policy from Old Republic Insurance Company. In a 1998 proceeding, an administrative law judge (“ALJ”)found that McCord was permanently disabled. By 2004, the City had paid more than $44,000 of excess compensation above its retention limit. Old Republic was not provided notice of the McCord claim until 2004. Old Republic filed this…