Coverage Deal Doesn't Bar Common Insurer's Aid, NJ Court Says

Law360, New York (April 13, 2012, 5:29 PM EDT) -- An insurance company that settles a coverage dispute with its policyholder remains liable for contributing to defense costs that another insurer for the same party incurred before the settlement, a New Jersey state appeals court said Friday in a precedential decision.

A three-judge panel of the New Jersey Superior Court’s appellate division said the issue had not yet been resolved in state law. The decision backed previous findings by California courts in cases involving post-settlement sharing of defense costs among insurance companies with a common insured...
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