Skip to Navigation
The Collaborative Clearinghouse for Lawsuits and Other Claims Against ACE Group Insurance Companies

AMERICAN FIRE & CASUALTY INSURANCE COMPANY et al v. ACE AMERICAN INSURANCE COMPANY et al

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

Case Number: 
2:12-cv-07126 Search Pacer
ACE Group party(s): 
Opposing Party: 
American Fire & Casualty Insurance Company
Court Type: 
Federal
US District Court: 
Eastern District of Pennsylvania
Date Filed: 
Dec 20 2012

"COUNT 1
DECLARATORY JUDGMENT - KEYSTONE IS AN INSURED UNDER THE ACE AMERICAN INSURANCE POLICY & ACE AMERICAN OWES AMERICAN FIRE DEFENSE AND/OR INDEMNIFICATION FOR THE UNDERLYING LAWSUIT

46. Plaintiff American Fire incorporates paragraphs 1 through 45 above as though the same were fully set forth at length herein.

47. The American Fire Policy contains a "Real Estate Operations - Limitation of Coverage Endorsement" which provides: With respect to real estate operations, this insurance applies only to "bodily injury", "property damage" or "personal and advertising injury" arising out of the ownership, operation, maintenance or use of;
1. Such part of any premises you use for general real estate office purposes; and

2. Premises listed with you for sale or rental, if:
a. You do not own, operate, manage or rent the premises;
b. They are not in your care, custody or control; or
c. You do not act as agent for the collection of rents or in any supervisory capacity.
See Exhibit E.
48. Accordingly, there is no coverage for Keystone for the subject matter under the American Fire Policy.
49. The ACE American Policy is a commercial general liability policy issued to Fannie Mae that was in place on the date of loss. The ACE American Policy contains an "each occurrence" limit of $2,000,000 with an aggregate of $10,000,000. The ACE"

"COUNT II
DECLARATORY JUDGMENT - ACE AMERICAN INSURANCE COMPANY PROVIDES PRIMARY INSURANCE COVERAGE TO KEYSTONE ASSET MANAGEMENT, INC. & OHIO CASUALTY INSURANCE COMPANY PROVIDES EXCESS INSURANCE COVERAGE

60. Plaintiffs incorporates paragraphs 1 through 59 above as though the same were fully set forth at length herein,

61. Plaintiff Ohio Casualty issued the Ohio Casualty Umbrella Policy, which provides limits in the amount of $5,000,000.00 per occurrence in excess of underlying insurance.

62. The Ohio Casualty Umbrella Policy includes the following pertinent provisions:

I. COVERAGE
We will pay on behalf of the "Insured" those sums in excess of the "Retained Limit" that the "Insured" becomes legally obligated to pay by reason of liability imposed by law or assumed by the "Insured" under an "insured contract" because of bodily injury... that takes place during the Policy Period and is caused by an "occurrence" happening anywhere. The amount we will pay for damages is limited as described below in the Insuring Agreement Section II. LIMITS OF INSURANCE. G. Retained Limit We will be liable only for that portion of damages, subject to the Each= Occurrence Limit stated in the Declarations, in excess of the "retained limit," which is the greater of:

2. the total amounts stated as the applicable limits of the underlying policies listed in the Schedule of Underlying Insurance and the applicable limits of any other insurance providing coverage to the "Insured" during the Policy Period;

III. DEFENSE
A. We will have the right and duty to investigate any "claim" and defend any "suit" seeking damages covered by the terms and conditions of this policy when:

1. the applicable Limits of Insurance of the underlying policies listed in the Schedule of Underlying Insurance and the Limits of Insurance of any other insurance providing coverage to the "Insured" have been exhausted by actual payment of "claims" for any "occurrence" to which this policy applies;

VI. Conditions
J. Other Insurance

If other insurance applies to a loss that is also covered by this policy, this policy will apply excess of the other insurance. Nothing herein will be construed to make this policy subject to the terms, conditions and limitations of such other insurance. However, this provision will not apply if the other insurance is specifically written to be excess of this policy.

[emphasis added]

See Exhibit G.

63. Pursuant to Article VI(J) of the Ohio Casualty Umbrella Policy, the Ohio Casualty Umbrella Policy is "excess of the other insurance...." Accordingly, the ACE American Policy is primary since the Ohio Casualty Umbrella Policy is excess of the applicable limits of the underlying policies and is excess to any other insurance providing coverage to the Insured during the policy period. See Exhibit G.

64. Further, pursuant to the provisions of Article III of the Ohio Casualty Umbrella Policy, Ohio Casualty does not owe a defense in the underlying lawsuit until "the applicable Limits of Insurance of the underlying policies listed in the Schedule of Underlying Insurance and the Limits of Insurance of any other insurance providing coverage to the "Insured" have been exhausted...." See Exhibit G.

65. Accordingly, ACE American Insurance Company Policy HDOG2493536A provides primary coverage to Keystone Asset Management, Inc. and Ohio Casualty Insurance Company Commercial Umbrella Policy UBO (10) 53 40 86 14 provides excess insurance coverage, once all applicable other insurance coverage has been exhausted.

66. Plaintiff, Ohio Casualty has incurred and will continued to incur damages based on ACE American Insurance Company's wrongful refusal to defend and indemnify under the ACE American Insurance Policy issued to Fannie Mae, under which Keystone is an insured and entitled to coverage."

The provided text is an excerpt from a document filed in this case. For a full understanding of the case, one should read the complete court file, including the response.

Javascript is required to view this map.