Insurability of Punitive Damages

Insurance-Certificate-Glasses_15701162As a matter of public policy, Pennsylvania (like a number of other states) prohibits insuring against punitive damages.  But what happens if an insurer refuses to settle a case against a policyholder within policy limits and the policyholder then sustains an award of punitive damages?  That was the question decided by the Third Circuit in Wolfe v. Allstate Property & Casualty Insurance Co.
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