Primary insurer owes no duty to excess insurer

The Illinois Court of Appeals has held (March 2002) in US Fire Ins Co v Zurich Ins Co that when defending and settling claims a primary insurer owed no duty to the excess insurer. The primary insurer was not liable for discontinuing expert investigations or for failing to seek a release for the excess insurer during settlement negotiations. In this ruling Illinois differs from some other states, including New York.