The American Law Institute

DAVID F. LEVI, President ROBERTA COOPER RAMO, Chair of the Council DOUGLAS LAYCOCK, 1st Vice President LEE H. ROSENTHAL, 2nd Vice President WALLACE B. JEFFERSON, Treasurer PAUL L. FRIEDMAN, Secretary RICHARD L. REVESZ, Director STEPHANIE A. MIDDLETON, Deputy Director

COUNCIL KIM J. ASKEW, K&L Gates, Dallas, TX JOSE I. ASTIGARRAGA, Reed Smith, Miami, FL DONALD B. AYER, Jones Day, Washington, DC SCOTT BALES, Arizona Supreme Court, Phoenix, AZ JOHN H. BEISNER, Skadden, Arps, Slate, Meagher & Flom, Washington, DC JOHN B. BELLINGER III, Arnold & Porter Kaye Scholer LLP, Washington, DC AMELIA H. BOSS, Drexel University Thomas R. Kline School of Law, Philadelphia, PA ELIZABETH J. CABRASER, Lieff Cabraser Heimann & Bernstein, San Francisco, CA EVAN R. CHESLER, Cravath, Swaine & Moore, New York, NY MARIANO-FLORENTINO CUELLAR, California Supreme Court, San Francisco, CA IVAN K. FONG, 3M Company, St. Paul, MN KENNETH C. FRAZIER, Merck & Co., Inc., Kenilworth, NJ PAUL L. FRIEDMAN, U.S. District Court, District of Columbia, Washington, DC STEVEN S. GENSLER, University of Oklahoma College of Law, Norman, OK ABBE R. GLUCK, Yale Law School, New Haven, CT YVONNE GONZALEZ ROGERS, U.S. District Court, Northern District of California, Oakland, CA ANTON G. HAJJAR, Chevy Chase, MD TERESA WILTON HARMON, Sidley Austin, Chicago, IL NATHAN L. HECHT, Texas Supreme Court, Austin, TX WILLIAM C. HUBBARD, Nelson Mullins Riley & Scarborough, Columbia, SC SAMUEL ISSACHAROFF, New York University School of Law, New York, NY KETANJI BROWN JACKSON, U.S. District Court for the District of Columbia, Washington, DC WALLACE B. JEFFERSON, Alexander Dubose & Jefferson LLP, Austin, TX GREGORY P. JOSEPH, Joseph Hage Aaronson LLC, New York, NY MICHELE C. KANE, The Walt Disney Company, Burbank, CA HAROLD HONGJU KOH, Yale Law School, New Haven, CT CAROLYN B. KUHL, Superior Court of California, County of Los Angeles, Los Angeles, CA CAROLYN B. LAMM, White & Case, Washington, DC DEREK P. LANGHAUSER, Office of the Governor, Augusta, ME DOUGLAS LAYCOCK, University of Virginia School of Law, Charlottesville, VA; University of Texas at Austin School of Law, Austin, TX CAROL F. LEE, Taconic Capital Advisors, New York, NY DAVID F. LEVI, Duke University School of Law, Durham, NC LANCE LIEBMAN*, Columbia Law School, New York, NY GOODWIN LIU, California Supreme Court, San Francisco, CA RAYMOND J. LOHIER, JR., U.S. Court of Appeals, Second Circuit, New York, NY GERARD E. LYNCH, U.S. Court of Appeals, Second Circuit, New York, NY MARGARET H. MARSHALL, Choate Hall & Stewart, Boston, MA LORI A. MARTIN, WilmerHale, New York, NY TROY A. MCKENZIE, New York University School of Law, New York, NY M. MARGARET MCKEOWN, U.S. Court of Appeals, Ninth Circuit, San Diego, CA JUDITH A. MILLER, Chevy Chase, MD PATRICIA ANN MILLETT, U.S. Court of Appeals, District of Columbia Circuit, Washington, DC JANET NAPOLITANO, University of California, Oakland, CA KATHRYN A. OBERLY, District of Columbia Court of Appeals (retired), Washington, DC KATHLEEN M. O'SULLIVAN, Perkins Coie, Seattle, WA

*DirectorEmeritus

III STEPHANIE E. PARKER, Jones Day, Atlanta, GA STUART RABNER, New Jersey Supreme Court, Trenton, NJ ROBERTA COOPER RAMO*, Modrall Sperling, Albuquerque, NM DAVID W. RIVKIN, Debevoise & Plimpton, New York, NY DANIEL B. RODRIGUEZ, Northwestern University Pritzker School of Law, Chicago, IL LEE H. ROSENTHAL, U.S. District Court, Southern District of Texas, Houston, TX GARY L. SASSO, Carlton Fields, Tampa, FL ANTHONY J. SCIRICA, U.S. Court of Appeals, Third Circuit, Philadelphia, PA MARSHA E. SIMMS, Weil, Gotshal & Manges (retired), New York, NY ROBERT H. SITKOFF, Harvard Law School, Cambridge, MA JANE STAPLETON, Christ's College, University of Cambridge, Cambridge, England LAURA STEIN, The Clorox Company, Oakland, CA LARRY S. STEWART, Stewart Tilghman Fox Bianchi & Cain, Miami, FL ELIZABETH S. STONG, U.S. Bankruptcy Court, Eastern District of New York, Brooklyn, NY CATHERINE T. STRUVE, University of Pennsylvania Law School, Philadelphia, PA JEFFREY S. SUTTON, U.S. Court of Appeals, Sixth Circuit, Columbus, OH SARAH S. VANCE, U.S. District Court, Eastern District of Louisiana, New Orleans, LA SETH P. WAXMAN, WilmerHale, Washington, DC STEVEN 0. WEISE, Proskauer Rose, Los Angeles, CA DIANE P. WOOD, U.S. Court of Appeals, Seventh Circuit, Chicago, IL

COUNCIL EMERITI KENNETH S. ABRAHAM, University of Virginia School of Law, Charlottesville, VA SHIRLEY S. ABRAHAMSON, Wisconsin Supreme Court, Madison, WI PHILIP S. ANDERSON, Williams & Anderson, Little Rock, AR SUSAN FRELICH APPLETON, Washington University School of Law, St. Louis, MO SHEILA L. BIRNBAUM, Dechert LLP, New York, NY ALLEN D. BLACK, Fine, Kaplan and Black, Philadelphia, PA MICHAEL BOUDIN, U.S. Court of Appeals, First Circuit, Boston, MA WILLIAM M. BURKE, Shearman & Sterling (retired), Costa Mesa, CA GERHARD CASPER, Stanford University, Stanford, CA EDWARD H. COOPER, University of Michigan Law School, Ann Arbor, MI N. LEE COOPER, Maynard, Cooper & Gale, Birmingham, AL GEORGE H. T. DUDLEY, Dudley Newman Feuerzeig, St. Thomas, U.S. VI CHRISTINE M. DURHAM, Utah Supreme Court (retired), Salt Lake City, UT CONRAD K. HARPER, Simpson Thacher & Bartlett (retired), New York, NY D. BROCK HORNBY, U.S. District Court, District of Maine, Portland, ME MARY KAY KANE, University of California, Hastings College of the Law, San Francisco, CA CAROLYN DINEEN KING, U.S. Court of Appeals, Fifth Circuit, Houston, TX PIERRE N. LEVAL, U.S. Court of Appeals, Second Circuit, New York, NY BETSY LEVIN, Washington, DC HANS A. LINDE, Portland, OR MARTIN LIPTON, Wachtell, Lipton, Rosen & Katz, New York, NY MYLES V. LYNK, Arizona State University, Sandra Day O'Connor College of Law, Phoenix, AZ JOHN J. MCKETTA III, Graves, Dougherty, Hearon & Moody, Austin, TX ROBERT H. MUNDHEIM, Shearman & Sterling, New York, NY HARVEY S. PERLMAN, University of Nebraska College of Law, Lincoln, NE ELLEN ASH PETERS, Connecticut Supreme Court (retired), Hartford, CT MARY M. SCHROEDER, U.S. Court of Appeals, Ninth Circuit, Phoenix, AZ ROBERT A. STEIN, University of Minnesota Law School, Minneapolis, MN MICHAEL TRAYNOR**, Cobalt LLP, Berkeley, CA BILL WAGNER, Wagner McLaughlin, Tampa, FL WILLIAM H. WEBSTER, Milbank, Tweed, Hadley & McCloy, Washington, DC HERBERT P. WILKINS, Concord, MA

*PresidentEmeritus **President Emeritus and Chairof the Council Emeritus

IV Restatement of the Law Liability Insurance

(as of April 13, 2018)

REPORTER TOM BAKER, University of Pennsylvania Law School, Philadelphia, PA

ASSOCIATE REPORTER KYLE D. LOGUE, University of Michigan Law School, Ann Arbor, MI

ADVISERS KENNETH S. ABRAHAM, University of Virginia School of Law, Charlottesville, VA MARC T. AMY, Louisiana Court of Appeal, Third Circuit, Abbeville, LA MICHAEL F. AYLWARD, Morrison Mahoney, Boston, MA AMY BACH, United Policyholders, San Francisco, CA VANITA M. BANKS, Allstate Insurance Company, Northbrook, IL WILLIAM T. BARKER, Dentons US, Chicago, IL SHEILA L. BIRNBAUM, Quinn Emanuel Urquhart & Sullivan, New York, NY ALLEN D. BLACK, Fine, Kaplan and Black, Philadelphia, PA MICHELLE BOARDMAN, The Antonin Scalia Law School at George Mason University, Arlington, VA DAVID H. BROWN, Copeland & Rice, Houston, TX JOHN G. BUCHANAN III, Covington & Burling, Washington, DC MALCOLM A. CLARKE, University of Cambridge, St. John's College, Cambridge, England H. WALTER CROSKEY, California Court of Appeal, Second Appellate District, Division 3, Los Angeles, CA [Deceased 2014] ROBERT F. CUSUMANO, New York, NY SEAN M. FITZPATRICK, Trinity College, Hartford, CT PETER FLYNN, Illinois Circuit Court of Cook County, Chicago, IL BEVERLY B. GODBEY, Amy Stewart, Dallas, TX STEVEN M. GOLDMAN, Kramer Levin Naftalis & Frankel, New York, NY JONATHAN M. GOODMAN, General Electric Company, Fairfield, CT WILLIAM F. HIGHBERGER, Los Angeles Superior Court, Los Angeles, CA JACK B. JACOBS, Sidley Austin, Wilmington, DE ROBERT H. JERRY II, University of Missouri School of Law, Columbia, MO BARRY S. LEVIN, Orrick, Herrington & Sutcliffe, San Francisco, CA MEGHAN H. MAGRUDER, King & Spalding, Atlanta, GA LEO P. MARTINEZ, University of California, Hastings College of the Law, San Francisco, CA LORELIE S. MASTERS, Hunton & Williams, Washington, DC J. W. MONTGOMERY III, Jones Day, Pittsburgh, PA DAVID L. MULLIKEN, Latham & Watkins (retired), Honolulu, HI JOHN A. NADAS, Choate Hall & Stewart, Boston, MA THOMAS R. NEWMAN, Duane Morris, New York, NY NATASHA NYE, Peters & Nye, Barrington, IL HENRY L. PARR, Wyche, P.A., Greenville, SC DOUGLAS R. RICHMOND, Aon Professional Services, Overland Park, KS ADAM F. SCALES, Rutgers University Law School - Camden, Camden, NJ DANIEL SCHWARCZ, University of Minnesota Law School, Minneapolis, MN NATHANIEL S. SHAPO, Katten Muchin Rosenman, Chicago, IL

V RANDALL T. SHEPARD, Indiana University, Robert H. McKinney School of Law, Indianapolis, IN JEFFREY W. STEMPEL, University of Nevada, William S. Boyd School of Law, Las Vegas, NV LARRY S. STEWART, Stewart Tilghman Fox Bianchi & Cain, Miami, FL JEFFREY E. THOMAS, University of Missouri-Kansas City School of Law, Kansas City, MO ROBERT WILLIAM TOMILSON, Clark Hill, Philadelphia, PA SARAH S. VANCE, U.S. District Court, Eastern District of Louisiana, New Orleans, LA HERBERT P. WILKINS, Concord, MA

LIAISON For the American Insurance Association (AIA) LAURA A. FOGGAN, Washington, DC

VI MEMBERS CONSULTATIVE GROUP

Liability Insurance (as of April 10, 2018)

JOSE F. ANDERSON, Baltimore, MD C. ALLEN FOSTER, Washington, DC WLLIAM G. ARNOT III, Houston, TX KEM THOMPSON FROST, Houston, TX STEVEN K. BALMAN, Tulsa, OK ANNE GARDNER, Fort Worth, TX JENNIFER S. BARD, Cincinnati, OH LARRY T. GARVIN, Columbus, OH EDWARD J. BARSHAK, Boston, MA DAVID R. GEIGER, Boston, MA VERONICA M. BATES, Richardson, TX DAVID B. GOODWIN, San Francisco, CA KARL BAYER, Austin, TX MARJORIE GADARIAN GRAHAM, Palm Beach MARK A. BEHRENS, Washington, DC Gardens, FL MARTIND. BEIRNE, Houston, TX OSCAR S. GRAY, Baltimore, MD MARK I. BERNSTEIN, Philadelphia, PA MICHAEL D. GREEN, Winston-Salem, NC LARRY L. BOSCHEE, Bismarck, ND MICHAEL GREENWALD, Philadelphia, PA DIANE F. BOSSE, Buffalo, NY CHARLES E. GRIFFIN, Ridgeland, MS THOMAS H. BOYD, Minneapolis, MN DAVID GRUNING, New Orleans, LA STEVEN M. BRADFORD, Muscatine, IA TRACY RAFFLES GUNN, Tampa, FL LORENCE L. BRAVENEC, College Station, TX ROBERT M. HART, Bronxville, NY MICHAEL K. BROWN, Walnut Creek, CA HARRIS L HARTZ, Albuquerque, NM TIMOTHY W. BURNS, Madison, WI KATHERINE J. HENRY, Washington, DC W. JONATHAN CARDI, Winston-Salem, NC MARK HERRMANN, Chicago, IL JO CARRWLO, San Francisco, CA ERIC L. HIRSCHHORN, Washington, DC WLLIAM FRANK CARROLL, Dallas, TX RICHARD ANTHONY HODYL, JR., Chicago, ROBERT L. CARTER, Ottawa, L wL JORDAN B. CHERRICK, St. Louis, MO ROGER F. HOLMES, Anchorage, AK STEPHEN YEE CHOW, Boston, MA DOUGLAS G. HOUSER, Portland, OR WLLIAM J. CHRISS, Corpus Christi, TX C. STEPHEN HSU, Beijing, China DOUGLAS L. CHRISTIAN, Phoenix, AZ RICHARD H. HUNTER, St. Croix, Virgin Islands DAVID K. COHEN, Chevy Chase, MD JOHN E. IOLE, Pittsburgh, PA GEORGE W. CONK, New York, NY EDWARD J. JANGER, Brooklyn NY DENNIS R. CONNOLLY, Princeton, NJ LAMONT A. JEFFERSON, San Antonio, TX JOHN G. CRABTREE, Key Biscayne, FL KIRK C. JENKINS, Olympia Fields, IL GEOFFREY W. CRAWFORD, Burlington, VT RICHARD GIBBS JOHNSON, Cleveland, OH ROBERT A. CREAMER, Cambridge, MA ROBB JONES, Bethesda, MD THOMAS L. CUBBAGE III, Washington, DC BARRY G. KAIMAN, Los Angeles, CA EDWARD J. CURRIE, JR., Jackson, MS JOSHUA KARSH, Chicago, IL CHRISTOPHER SCOTT D'ANGELO, JOHN E. KEEFE, Little Silver, NJ Philadelphia, PA JEFF KICHAVEN, Los Angeles, CA MARY J. DAVIS, Lexington, KY HAROLD H. KIM, Washington, DC JOHN K. DIMUGNO, Cameron Park, CA LINDA A. KLEIN, Atlanta, GA JAMES B. DOLAN, JR., Boston, MA PETER R. KOCHENBURGER, Hartford, CT MITCHELL F. DOLIN, Washington, DC DAND. KOHANE, Buffalo, NY JAY M. FEINMAN, Camden, NJ MARTIN A. KOTLER, Wilmington DE BORIS FELDMAN, Palo Alto, CA STEVEN C. LAIRD, Fort Worth, TX GERALD M. FINKEL, Charleston, SC SYBIL H. LANDAU, New York, NY JILL FISCH, Philadelphia, PA JOSEPH H. LANG, JR., Tampa, FL JOSEPH Z. FLEMING, Miami, FL TIMOTHY P. LAW, Philadelphia, PA SUSAN S. FORTNEY, Fort Worth, TX CARL D. LIGGIO, Chevy Chase, MD

VII VICTOR E. SCHWARTZ, Washington, DC WILLIAM CULLEN MACDONALD, New York, NY DAVID W. J. SCOREY, London, England RANDY J. MANILOFF, Philadelphia, PA ANTHONY J. SEBOK, New York, NY GARY E. MARCHANT, Phoenix, AZ WILLIAM P. SHELLEY, Philadelphia, PA RICHARD L. MARCUS, San Francisco, CA KENNETH W. SIMONS, Irvine, CA MICHAEL M. MARICK, Chicago, L REAGAN W. SIMPSON, Houston, TX MARY MASSARON, Bloomfield Hills, MI PAUL A. SLAGER, Stamford, CT STEPHEN J. MATHES, Philadelphia, PA JOSEPH R. SLIGHTS III, Wilmington, DE JOHN J. MCGREGOR, Fresno, CA GEORGE PRESCOTT SLOVER, Washington, DC JOHN J. MCKETTA III, Austin, TX DOUGLAS G. SMITH, Chicago, IL BEVERLY MCQUEARY SMITH, Jersey City, NJ GERALD K. SMITH, Tucson, AZ PETER Y. KURT W. MELCHIOR, San Francisco, CA SOLMSSEN, Abiquiu, NM CHAD C. MESSIER, St. Thomas, Virgin RICHARD C. SQUIRE, New York, NY Islands KATHRYN A. STEPHENS, Minneapolis, MN DOUGLAS K. MOLL, Houston, TX H. MARK STICHEL, Baltimore, MD THOMAS D. MORGAN, Naples, FL DAVID J. STOUT, Albuquerque,NM GEORGE MARSHALL MORIARTY, Boston, MA S. I. STRONG, Columbia, MO LUTHER T. MUNFORD, Ridgeland, MS ANDREW H. STRUVE, Irvine, CA RICHARD L. NEUMEIER, Boston, MA GUY MLLER STRUVE, New York, NY KEN OLIPHANT, Bristol, England MICHAEL F. STURLEY, Austin, TX ARDEN J. OLSON, Eugene, OR STEPHEN D. SUGARMAN, Berkeley, CA DAVID F. PARTLETT, Atlanta, GA DALE M. SWOPE, Tampa, FL STEPHEN PATRICK PATE, Houston, TX DANIEL M. TRAYNOR, Devils Lake, ND ROBERT S. PECK, New York, NY CARLA C. VAN DONGEN, Bloomington, IL J. ANTHONY PENRY, Raleigh, NC ALAN VAN ETTEN, Honolulu, HI STEVEN PLITT, Phoenix, AZ THUY VO, Chicago, L JEFFREY M. POLLOCK, Princeton, NJ BLL WAGNER, Tampa, FL MATTHEW CHRISTOPHER POWERS, Austin, TX DENNIS J. WALL, Winter Springs, FL ELLEN S. PRYOR, Dallas, TX NICHOLAS J. WALLWORK, Southborough, MA ALFRED W. PUTNAM, Philadelphia, PA TORY A. WEIGAND, Boston, MA MARGARET JANE RADIN, Ann Arbor, MI HARVEY WEINER, Boston, MA BERNARD D. REAMS, JR., San Antonio, JERRY WERTHEIM, Santa Fe, NM TX JOSEPH A. WETCH, JR., Fargo, ND C. RYAN REETZ, Miami, FL MALCOLM E. WHEELER, Denver, CO HENRY DUPONT RIDGELY, Wilmington, DE MARGARET H. WILLIAMS, Jackson, MS JAMES L. ROBERTSON, Jackson, MS JAMES C. WLSON, JR., Vestavia, AL CHRISTOPHER JOHN ROBINETTE, Harrisburg, PA GERARD GITA F. ROTHSCHLD, Newark, NJ E. WIMBERLY, JR., New Orleans, LA KEITH A. ROWLEY, Las Vegas, NV WILLIAM A. WORTHINGTON, Houston, TX HOWARD RUDA, New York, NY JENNIFER WRIGGINS, Portland, ME TIMOTHY C. RUSSELL, Bryn Mawr, PA THOMAS C. WRIGHT, Houston, TX ALAN S. RUTKIN, Uniondale, NY ROBERT J. ZAPF, Los Angeles, CA

VIII