In complex coverage cases involving 'long-tail' claims (such as asbestos bodily injury claims or property damage claims related to environmental pollution), decades of insurance policies can be put at issue.
Occurrence Limits Under Multi-Year Policies: NJ Courts Are Changing Their Approach
In complex coverage cases involving 'long-tail' claims (such as asbestos bodily injury claims or property damage claims related to environmental pollution), decades of insurance policies can be put at issue. In many states, the policyholder's losses will be spread across the years in which the injury or property damage occurred on a proportionate basis, typically referred to as 'time on the risk' or pro rata allocation. <i>E.g., Security Ins. Co. of Hartford v. Lumbermens Mut. Cas. Co.</i>, 826 A.2d 107, 116 (Conn. 2003); <i>Sharon Steel Corp. v. Aetna Cas. & Sur. Co.</i>, 931 P.2d 127, 141 (Utah 1997); <i>Insurance Co. of N. Am. v. Forty-Eight Insulations, Inc.</i>, 633 F.2d 1212, 1224-25 (6th Cir. 1980).
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