Nat'l Cas. Co. v. Ga. Sch. Bds. Ass'n-Risk Mgmt. Fund, 304 Ga. 224

National Casualty issued professional liability policies to PAGE members for 2012–2013 and 2013–2014 that contained an "Other Insurance" clause making National's coverage specifically excess to other insurance, expressly including state pools and self-insurance programs.
Georgia School Boards Association–Risk Management Fund (Risk Fund) provided overlapping liability coverage to the same PAGE members through interlocal risk management Coverage Agreements that contained an "Insurance" clause making Risk Fund's obligations excess over "available and collectible insurance."
Multiple suits were filed (2014–2016) against PAGE members; National refused primary defense/indemnity, asserting its policy was excess, so Risk Fund defended and paid settlements pending resolution.
The district court found the two excess clauses irreconcilable and ordered pro rata sharing; it certified the question whether Georgia law or public policy prevents a commercial insurer from drafting a policy that is excess to coverage provided under OCGA § 20-2-2002 (interlocal risk pools).
The Georgia Supreme Court reviewed whether Holton’s "irreconcilable other insurance" rule should be displaced by public-policy or statutory concerns favoring exhaustion of commercial insurance before legislatively authorized public risk-pool funds.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Georgia law or public policy forbids a commercial insurer from contractually making its policy excess to coverage provided by an interlocal risk management agency under OCGA § 20-2-2002	National: Parties may contractually set an insurer's priority; an excess clause that makes a commercial policy excess to state pools is valid	Risk Fund: Public policy protecting the public purse and legislative scheme for school risk pools require commercial insurance be exhausted before public/fund money is used	Held: No Georgia law or public policy prohibits a commercial insurer from writing an excess clause that yields to risk-pool coverage; freedom of contract applies
Whether Holton’s rule on irreconcilable "other insurance" clauses applies when one insurer is a public interlocal risk pool	National: Holton applies to allocate liability where clauses are irreconcilable	Risk Fund: Holton developed for commercial-commercial conflicts and should not apply to interlocal public funds	Held: Holton’s analysis and priority/allocation approach are applicable; no exception for interlocal risk management agencies

State Farm Fire & Cas. Co. v. Holton, 131 Ga. App. 247, 205 S.E.2d 872 (1974) (establishes rule that mutually exclusive excess clauses cancel and liability is divided)
Reed v. Auto-Owners Ins. Co., 284 Ga. 286, 667 S.E.2d 90 (2008) (insurers generally free to set policy terms so long as not contrary to law or public policy)
York Ins. Co. v. Williams Seafood of Albany, Inc., 273 Ga. 710, 544 S.E.2d 156 (2001) (policy interpretation follows contract principles; ambiguities construed for coverage)
Bell v. Liberty Mut. Fire Ins. Co., 319 Ga. App. 302, 734 S.E.2d 894 (2012) (reinforces contract-construction rules for insurance policies)
Googe v. Fla. Int'l Indem. Co., 262 Ga. 546, 422 S.E.2d 552 (1992) (sovereign immunity/public-purse concerns in context of earlier constitutional waiver cases)
Martin v. Georgia Dep't of Pub. Safety, 257 Ga. 300, 357 S.E.2d 569 (1987) (sovereign-immunity context addressed public-fund protection)
Bryan v. MBC Partners, L.P., 246 Ga. App. 549, 541 S.E.2d 124 (2000) (public policy disfavors interfering with freedom of contract absent clear public interest)
Hartley v. Agnes Scott Coll., 295 Ga. 458, 759 S.E.2d 857 (2014) (limits of Georgia Tort Claims Act sovereign immunity concept)
Mass. Mut. Life Ins. Co. v. Woodall, 304 F. Supp. 2d 1364 (S.D. Ga. 2003) (noting broad public impact of rulings on common insurance policy terms)