Lovewell v. Physicians Insurance Co.: Personal Liability for Prejudgment Interest

Abstract

This article looks at the Supreme Court of Ohio's decision in Lovewell v. Physicians Insurance Co. and the variety of issues and unanswered questions the decision presents relating to insurance law. First, it may no longer be assumed that the insurer acts in tandem with the insured when the insurer is defending a suit brought against the covered individual. Secondly, the Lovewell decision seems to be contrary to one of the basic tenets of insurance law – that an insurance contract must be construed liberally in favor of the insured and strictly against the insurer. Third, the decision gives insureds cause to wonder whether a clause allowing them the right to refuse settlement may result in personal liability.