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Insurance — reinsurance

Wisconsin Court of Appeals

Civil

Insurance — reinsurance

Daniel J. DeMarco appeals from judgments dismissing his claims against ACE American Insurance Company and Balboa Insurance Company. DeMarco argues that these insurers owe him for amounts he paid to defend and settle a lawsuit filed against him in 2007, relating to the sale of his home. DeMarco’s claim is based upon insurance policies issued by a predecessor insurer, Atlantic Mutual Insurance Company, which became insolvent during the circuit court proceedings. DeMarco alleges that ACE and Balboa assumed liability for his policies and are also his insurers. The circuit court granted summary judgment against DeMarco and in favor of ACE and Balboa.

We agree with the circuit court that DeMarco’s insurance did not provide coverage for the losses claimed in the lawsuit against DeMarco. Since DeMarco’s defense was provided under a reservation of rights, the insurers’ right to contest coverage remains enforceable. Because the lawsuit’s claims were outside the scope of his coverage, DeMarco is not entitled to reimbursement for the entire $150,000 he paid to settle the litigation. Not recommended for publication in the official reports.

2012AP1933 DeMarco v. Keefe Real Estate Inc., et al.

Dist II, Walworth County, Carlson, J., Brown, C.J.

Attorneys: For Appellant: Govern, Shawn M., Brookfield; Mistrioty, George D., Brookfield; Scott, Kevin M., Brookfield; For Respondent: Lessner, Justin Harold, Chicago; Gibbons, Edward P., Chicago

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