Opinion ID: 1802432
Heading Depth: 4
Heading Rank: 3

Heading: Whether the Other Insurance clause is applicable to the NCIGA coverage.

Text: ¶ 30. The LMCC Catastrophe Policy includes an Other Insurance provision which states: If other valid and collectible insurance is available to the insured for loss covered hereunder, this Coverage Part will be excess of such other insurance. This condition does not apply to insurance purchased specifically to be either quota share with this insurance or excess of this insurance. Caldwell creatively argues that the NCIGA policy qualified as other insurance, and therefore, the Catastrophe Policy will be excess of such other insurance. Thus, Caldwell argues LMCC should reimburse it for the $200,000 it paid in settlement to Harvey. ¶ 31. Conversely, LMCC argues that it would be preposterous to interpret its Other Insurance clause as providing drop down coverage. LMCC points out that nearly all excess liability policies contain such a clause, which does not void or abrogate the effect of the policy's other provisions. ¶ 32. Interpreting the Other Insurance clause as implying a duty to provide drop down coverage would not only contradict the specific policy provisions, but it would also contradict North Carolina law, which states that drop down coverage will not be found unless the policy expressly provides for such coverage. Century, 444 S.E.2d at 470. Furthermore, the Century court noted that excess insurance is to protect the insured against excess liability claims, not to insure against the underlying insurer's insolvency. Id. ¶ 33. For the reasons stated, this Court finds that the Other Insurance provision does not imply that LMCC is liable for all amounts which exceed the amount paid by NCIGA. The LMCC policy does not expressly provide for drop down coverage, but merely states that the Catastrophe Policy is to be in excess of any other insurance available to the insured.