Transco Exploration Company v. Pacific Employers Insurance Company

JERRY E. SMITH, Circuit Judge:

In this case, we are asked to declare the winner in a game of grammatical tug-of-war between an excess insurer and an insured over whether an excess insurance policy “drops down” in place of a policy issued by a now-insolvent primary insurer. On summary judgment, the district court ruled in favor of the insured. Because we conclude, however, that the language of the policy cannot support this result, we reverse and render judgment in favor of the excess insurer.

I

The relevant facts in this case are undisputed and few in number. An injured worker employed by Salen…