Yesterday, New York’s high court took a giant step forward in protecting policyholders facing latent injury claims, allowing them to avoid multiple deductibles, retentions and insolvent coverage. In the Matter of Viking Pump, Inc. and Warren Pumps, LLC, Insurance Appeals (N.Y. Court of Appeals No. 59 May 3, 2016). The court held that, for policies that contain non-cumulation clauses, “all sums” allocation with vertical exhaustion is the only appropriate method for allocating losses among policies. This ruling is a game-changer for policyholders facing asbestos and environmental claims with insurance policies governed by New York law.
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