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Ace American Insurance Co. v. Murco Wall Products, Inc.

Court: ND Tx  06/24/2024  "Not Covered" Does Not Include Claims No Longer Covered Due to Exhaustion

A court of the Northern District of Texas held that defense obligation in excess policy which provided for defense of claims "not covered" by underlying primary policy was not triggered after exhaustion of primary policy, rejecting insured's interpretation as unreasonable that phrase "not covered" includes claims which were covered by primary policy but no longer covered as the result of exhaustion of the primary policy because the natural reading of "not covered" means risks not within the scope of coverage and does not pertain to the payout limits.

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