ALI Restatement of Insurance Liability was recently approved by the ALI Board. The restatement began as a project in 2014 to “provide clear formulations of common law and its statutory elements or variations and reflect the law as it presently stands or might appropriately be stated by a court.”
The Restatement addresses and updates four (4) basic areas:
- Contract law doctrines with special application to insurance law, such as interpretation, waiver, estoppel and misrepresentation;
- Contract law doctrines with special application to duties of insurers and insureds in the management of potentially insured liability actions including defense, settlement and cooperation.
- Contract law doctrines with special application to risks insured, including coverage provisions, conditions and application of limits, retentions, and deductables.
- Contract law doctrines which address issues of remedies, bad faith, enforceability and broker liability.
While reinstatements do not replace case law, they are often harbingers of common law movement across the country and thus worthy of your consideration.