PUBLISHED ON: October 12, 2018
For more than 20 years, insurance companies, policyholders, and their counsel, in both New York and New Jersey, have shared a mutual understanding regarding at least one issue concerning the allocation of long-tail losses among multiple policy years. Based on two leading cases decided in the 1990s, the rule and practice has been that losses are not allocated to policyholders in periods when insurance was not available for purchase. As a matter of practice, this has most commonly come into play in disputes involving insurance coverage for asbestos and environmental liabilities, as coverage for both types of claims became unavailable generally around 1985-86.
Read more: Allocation of Long-Tail Losses in New York and New Jersey