Opinion ID: 2120473
Heading Depth: 2
Heading Rank: 1

Heading: Follow Form Policy

Text: ¶ 34 Rather, the excess umbrella policy issued by London Market is a follow form policy, meaning that the policy is relatively brief and incorporates many of the provisions of an underlying policyin this case, the excess umbrella policies issued by Travelers. [7] One of the conditions hereinafter mentioned in the London Market policy is the follow form provision: This Policy is subject to the same terms, definitions, exclusions and conditions (except as regards the premium, the amount and Limits of Liability and except as otherwise provided herein) as are contained in or as may be added to the Underlying [Travelers policies] prior to the happening of an occurrence for which claim is made hereunder. Thus, to determine the terms, definitions, exclusions, and conditions of the London Market policy, it is necessary to turn to the Travelers policies. [8] ¶ 35 Among other provisions, the underlying Travelers policies contain a duty to defend as well as a duty to indemnify: Liability. The company will pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages ..., and the company shall have the right and duty to defend any suit against the insured seeking damages on account of such injury or damage ..., but the company shall not be obligated to pay any claim or judgment or to defend any suit filed after the applicable limit of the company's liability has been exhausted by payments of judgments or settlements. (Emphasis added.) ¶ 36 To determine whether Travelers' duty to defend is incorporated into London Market's policy, we must examine the language of London Market's follow form provision. It states that the policy is subject to the same terms, definitions, exclusions and conditions (except as regards the premium, the amount and Limits of Liability and except as otherwise provided herein) as are contained in the underlying Travelers policies. ¶ 37 London Market's follow form provision does not expressly disclaim the duty to defend found in the Travelers policies. Rather, it explicitly sets forth three ways in which the London Market policy differs from the underlying Travelers policies: (1) the premium; (2) the amount and Limits of Liability; and (3) except as otherwise provided herein. ¶ 38 No argument is made about the first two areas of difference. The parties focus on the third area of difference, except as otherwise provided herein.