National Insurance Law Forum

National Insurance Law Forum

Published By The Attorneys of the National Insurance Law Forum

Tag Archives: allocation

Noncumulation Clause Results in “All Sums” Allocation for Long-Tail Environmental Liabilities

Posted in Recent Cases
By David M. Knapp, Ward Greenberg Heller & Reidy LLP Applying the New York Court of Appeal’s landmark Viking Pump decision for the first time, the Second Circuit recently held that an “all sums” allocation applied to policies issued to Olin Corporation by OneBeacon American Insurance Company in a long-tail environmental coverage dispute. Olin Corp.… Continue Reading

Exhausting Policy Limits

Posted in Duty to Indemnify, Excess and Umbrella Insurance, Liability Coverage, Recent Cases
As insurance is depleted for ongoing claims like asbestos bodily injury and long-term environmental pollution, how an insured is to use its layers of insurance is an issue.  The California Supreme Court has been asked to weigh in on the question of whether “horizontal exhaustion” or “vertical exhaustion” principles should apply to excess and umbrella… Continue Reading

Allocation 201: Who Pays Insolvent Shares?

Posted in Liability Coverage
While more and more jurisdictions have rejected policyholder "all sums" claims in long-tail suits, there is still a striking lack of uniformity in the approach that these courts are taking to individual allocation issues.  In particular, there is a major division as to whether allocation applies to the entire period of injury or just those… Continue Reading

The Montrose Language Interpreted: How Many Policies Are Implicated By A Construction Defect That Later Causes a Flood?

Posted in Liability Coverage
The Court of Appeals of Indiana recently addressed the “Montrose“  language added to the CGL ISO form in 2001 in the context of a construction defect claim where a fractured storm drain caused significant flooding a year after the drain was damaged.  The insuring agreement requires that “bodily injury” or “property damage” be caused by… Continue Reading

Monthly Practice Tip: Is There Hope for Recoupment Claims?

Posted in Practice and Procedure
Today, we continue a new feature on our blog: the Monthly Practice Tip, which considers a practical problem faced by claims professionals and outside coverage counsel, presenting a dialogue created by our five editors.  This month we look at the ever-challenging problem of recoupment claims.    March is the season of hope.  After a long, dreary winter, March… Continue Reading

Thoughts On Allocation

Posted in Liability Coverage
I spoke on a Boston Bar Association panel last week that was exploring the implications of Boston Gas v. Century Indemnity, the case in which our Supreme Judicial Court ruled last July that long-tail losses must be allocated on a pure “time on the risk” basis without consideration to whether insurance was “unavailable” for certain… Continue Reading

Ambiguous Instructions from the Ninth Circuit Result in a Potentially Problematic Ruling for Insurers in Allocation Cases

Posted in Recent Cases
  In MW Builders, Inc. v. Safeco Ins. Co. of America, District Court Judge Haggerty held that an insurance company must bear the burden of establishing which portions of an arbitration award were reasonably allocable to covered claims where “circumstances of the underlying action should have compelled the insurer to seek an allocated verdict or… Continue Reading

New Jersey Court Tackles Allocation Issues

Posted in Liability Coverage
Can it be that there are allocation issues that have yet to be addressed in New Jersey?  It seems so. In Franklin Mut. Ins. Co. v. Metropolitan Property & Cas. Ins. Co., No. A-5265-07T2 (App. Div. April 17, 2009), the Appellate Division was asked to consider how the cost of cleaning up contamination from a leaking tank… Continue Reading

Vermont Supreme Supreme Weighs In on Allocation And Other Pollution Coverage Issues

Posted in Liability Coverage
Even as briefing has begun before the Massachusetts Supreme Judicial Court with respect to the issue of allocation, Vermont has joined the growing number of Northeastern states adopting a “time on the risk” approach in long-tail cases. In its first comprehensive assay into the murky world of environmental jurisprudence, the Vermont Supreme Court has ruled… Continue Reading

Fifth Circuit Limits Excess Insurers Exposure Following Policyholder’s Partial Allocation of Primary Limits

Posted in Liability Coverage
Several days ago, the Fifth Circuit Court of Appeals evaluated a primary liability carrier’s tender of its policy limits to its insured for covered claims and whether such a tender triggered an excess insurer’s liability coverage when the insured allocated the primary limits across several years of losses.  In Service Corp. Int’l v. Great Am. Ins. Co.… Continue Reading

New Hampshire Supreme Court Adopts Pro Rata Allocation For Long Tail Claims

Posted in Liability Coverage
Score it Insurers 8-Policyholders 6 as casualty insurers won a round today in the on-going battle over whether insureds must allocate long-tail losses in accordance with the duration of the loss or can "spike" their claims to a single year of coverage to trigger higher layer policies and avoid those nasty orphan shares and gaps in coverage.… Continue Reading