'Other Similar Insurance' Exclusion Does Not Apply to a Renewal Policy in the Context of an Automatic Extended Reporting Period Provision


U.S. District Court for the District of Massachusetts

The federal district court, in New England Environmental Technologies v. American Safety Risk Retention Group, Inc., ___ F.Supp.2d ___, 2010 WL 3622250 (D. Mass. Sept. 15, 2010), held that a denial of coverage pursuant to an Automatic Extended Reporting Period (AERP) containing an "other similar insurance" exclusion is improper when applied to a renewal policy.

New England Environmental Technologies (NEET) had purchased "claims made" policies covering three subsequent policy periods from insurer American Safety Risk Retention Group, Inc. Each policy contained a 30-day AERP provision that would "only apply if no other similar insurance is in force at the time of the AERP."

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