Fireman's Fund Insurance v. TD Banknorth Insurance Agency Inc.

DENNIS JACOBS, Chief Judge:

A policyholder appeals from a declaratory judgment entered in the United States District Court for the District of Connecticut (Droney, J.), awarding to its insurer all funds held in escrow as proceeds from settlement of the policyholder’s claims against third parties. The policyholder, TD Banknorth Insurance Agency, Inc. (“TD Banknorth”), challenges the allocation of the escrowed funds on the ground that Connecticut’s common law “make whole” doctrine entitles it to recover its deductible before its insurer, Fireman’s Fund Insurance Company (“Fireman’s Fund”), can…