Choice of Law Issues in Insurance Cases

Choice of law can be outcome-determinative in many coverage actions because states resolve coverage actions based on widely differing rules. Examples include trigger of coverage, extra-contractual recovery, bad faith elements, late notice requirement for insurer prejudice, and “all sums” coverage for long-tail claims. Because most insurers cover interests in all 50 states, attorneys contemplating litigation typically have venue options, with choice of law governed by the forum state. Steve DeGeorge's session at the North Carolina Bar Association's 2021 Insurance Law Section CLE discussed strategies to take advantage of these options, including consideration of N.C.G.S. § 58-3-1, which effectively requires application of North Carolina law to policies covering “property, lives, or interests” in North Carolina.