Federal Insurance v. Traveler's Casualty & Surety Co.

A substantial judgment was entered against an insured in a case arising from the death of a worker on the insured’s job site. The insured maintained primary liability coverage with Aetna (now Travelers), and excess coverage from Federal Insurance Company. The decedent’s personal representative sued the employer but settlement negotiations were unsuccessful. A jury then returned a substantial verdict in favor of the personal representative. Thereafter the parties settled and Travelers paid the limits of its primary coverage, $1,000,000, and Federal paid the balance of $3,600,000.

Federal then…