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Expert Analysis

7th Circ. Ruling Reveals Broad-Exclusion Risks For Insurers

By Caroline Meneau and David Kroeger (October 25, 2019, 3:13 PM EDT) -- When an insurance policy exclusion is so broadly written that it negates any meaningful coverage, courts will use the illusory coverage doctrine to reform the policy to meet the reasonable expectations of the insured. When faced with denials of coverage under policy exceptions, policyholders may have the opportunity to use the exceptions' breadth to their own advantage, arguing that the exceptions are so broad that they swallow the bargained-for coverage....

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