News & Analysis as of

Pro Rata Allocation Rule Insurance Industry

Rivkin Radler LLP

Insurance Update - September 2023

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We touch upon several topics in our September Insurance Update. We begin with two federal circuit court rulings on late notice – one involving a claims-made policy and the other an occurrence policy. In these cases, the...more

Rivkin Radler LLP

Insurance Update - January 24, 2023

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It was a busy end to the year, as courts handed down several key insurance decisions before ringing in 2023. The Ohio Supreme Court considered the contours of “direct physical loss or damage” in two separate decisions –...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - December 28 2022

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Burlington Insurance Company issued primary policies to a contractor in 2013-14 and 2014-15, and Century was the excess insurer for 2013-14. The contractor was sued for property damage resulting from its construction work...more

White and Williams LLP

North Carolina Supreme Court Addresses “Trigger of Coverage,” Allocation and Exhaustion-Related Issues Arising Out of...

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On December 16, 2022, the North Carolina Supreme Court decided Radiator Specialty Co. v. Arrowood Indem. Co., 2022 N.C. LEXIS 1122 (Dec. 16, 2022), in which it addressed coverage issues arising out of claims by individuals...more

Venable LLP

Defense Costs for Long-Tail Claims: Making the Most of Your Insurance Coverage

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Long-tail claims involve continuous or progressive injuries that occur over the course of multiple years. Often these claims occur in the context of long-latency diseases, such as those arising from asbestos exposure, or...more

Wiley Rein LLP

Irreconcilable “Other Insurance” Clauses Result in Pro Rata Allocation of Defense Costs

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The United States District Court for the Eastern District of Michigan, applying Michigan law, has held that irreconcilable “other insurance” provisions in two polices, each with a concurrent duty to defend, cannot be given...more

Hinshaw & Culbertson - Insights for Insurers

New York Appellate Court Rules Insurer Accepting Service and Assigning Counsel to Defend Defunct Insured Retains Coverage Defenses...

On March 22, 2022, the Supreme Court of New York Appellate Division, First Department reversed a trial court order which had held an insurer—ordered to accept service on behalf of a defunct policyholder—was liable for the...more

White and Williams LLP

New York Appellate Court Restores Insurer’s Right to Seek Pro Rata Allocation of Settlements Between Insured and Uninsured Periods

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In Liberty Mut. Ins. Co. v. Jenkins Bros., 2022 N.Y. App. Div. LEXIS 1846 (App.Div. 1st Dept. March 22, 2022), the New York Supreme Court, Appellate Division, First Department, issued a ruling reversing the trial court and...more

White and Williams LLP

Montana Supreme Court Tackles Decade-Old Coverage Dispute Concerning Asbestos Mineworker Claims

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On November 23, 2021, the Montana Supreme Court issued an almost unanimous decision in National Indemnity Company v. State of Montana, a ten-year-old coverage dispute arising from claims against the State of Montana alleging...more

Flaster Greenberg PC

New York Asbestos Ruling Could Change Insurers Approach

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Although many companies that historically used asbestos in their products have gone bankrupt, there are still many that have managed to survive. How? In some — perhaps many — cases, the answer may be due in no small part to...more

White and Williams LLP

The Complex Insurance Coverage Reporter – 2020 Year in Review

Welcome to CICR’s annual review of insurance cases. Here, we spotlight decisions from the last year that you should know about — and a few pending cases to watch. As our picks for “Cases to Know” (below) indicate,...more

Locke Lord LLP

Maryland Joins State Supreme Courts Endorsing Pro Rata Allocation for Long-Tail Losses

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The high court of Maryland has endorsed pro rata allocation under CGL policies in an asbestos bodily injury case, affirming the lower court and stating that “[t]he pro rata allocation approach—a longstanding precedent adopted...more

White and Williams LLP

New York State Trial Court: Non-Cumulation Provision in Excess Policies Mandates “All Sums” Allocation

On August 18, 2018, the New York Supreme Court, New York County, confirmed a referee’s finding that “all sums” allocation was required under excess policies issued by Midland Insurance Company because they included a...more

Pillsbury - Policyholder Pulse blog

New York’s Highest Court Delivers a Blow to Policyholders in Allocation of Long-Tail Liability Coverage

The conflict between policyholders and insurers over “long-tail” insurance coverage took an unfortunate turn with a recent decision by the New York Court of Appeals on the issue of allocation for long-tail claims. On March...more

Carlton Fields

New York’s Highest Court Rejects ‘Unavailability of Insurance Exception’ Under ‘Pro Rata Time on the Risk Allocation’

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On March 27, the New York Court of Appeals unanimously ruled that under a “pro rata time on the risk allocation,” insurers are not liable for years outside their policy periods when there was no insurance available to the...more

White and Williams LLP

New York Court of Appeals Rejects Unavailability Exception to Pro Rata Allocation

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On March 27, 2018, the New York Court of Appeals issued its widely anticipated decision in Keyspan Gas East Corp. v. Munich Reinsurance America, Inc. The issue before the court was whether New York law supports the adoption...more

Bradley Arant Boult Cummings LLP

Keep Viking Pump in Your Long-Tail Claim Toolbox

“Long-tail” claims involve personal injury or property damage from alleged exposure to injury-causing products, such as asbestos or PFCs, over a number of years and multiple policy periods. Courts in various jurisdictions use...more

Morris James LLP

Supreme Court of Delaware Decides Long-Standing Dispute in Viking Pump Action

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The Supreme Court of Delaware issued its decision in the long-standing dispute in In re Viking Pump, Inc. and Warren Pumps, LLC. The appeal arose out of several rulings in the Court of Chancery and after a jury trial in the...more

Mintz

Louisiana Supreme Court Adopts Pro Rata Allocation of Defense Costs Among Insurers and Insured

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On September 7, 2016, the Louisiana Supreme Court applied, for the first time, a pro rata allocation method to defense costs where commercial general liability policies provided coverage during a portion of the time of...more

Locke Lord LLP

Louisiana Extends Pro Rata Allocation to Defense Costs

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The Louisiana Supreme Court has endorsed pro rata allocation of defense costs associated with hearing loss cases across triggered policy periods. The decision reversed a 2015 appellate ruling that pro rata allocation applied...more

Neal, Gerber & Eisenberg LLP

“All Sums” Claims Another Victory, This Time In New York

In Viking Pump, Inc., et al. v. TIG Insurance Co., et al., 2016 N.Y. LEXIS 1018 (N.Y. May 3, 2016), policyholders scored a victory when New York’s highest court applied “all sums” allocation and vertical exhaustion. The...more

K&L Gates LLP

New York’s Highest Court Issues a Noteworthy Decision, Rejecting “Pro Rata” Allocation in the Asbestos Bodily-Injury Context

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On May 3, the New York Court of Appeals unanimously held that an “all-sums” method of allocation should be used to apportion liability among excess insurers based on the policy language at issue in the case. Contrary to...more

McCarter & English, LLP

New York High Court Applies All Sums Allocation To Long-Tail Claims Under Certain Insurance Policies

The New York Court of Appeals recently answered two certified questions from the Delaware Supreme Court concerning insurance allocation, and the Court’s answers may impact significantly policyholders litigating “long-tail”...more

Cozen O'Connor

New York’s Highest Court Creates Exception to Pro Rata Allocation

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On May 3, 2016, the New York Court of Appeals answered two certified questions posed by the Delaware Supreme Court regarding the appropriate allocation method for long-tail claims among successive excess carriers. The first...more

Locke Lord LLP

New York’s Highest Court Holds All Sums Allocation And Vertical Exhaustion Applied To Excess Insurance Coverage For Asbestos...

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On May 3, 2016, the Court of Appeals of New York issued its opinion in In re Viking Pump, No. 59, 2016 WL 1735790, and found that “all sums” allocation and vertical exhaustion applied to the insureds’ claims to excess...more

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