NY High Court To Rule On Fire Loss Sharing Clause

Law360, New York (September 17, 2013, 6:13 PM EDT) -- The highest court in New York agreed on Tuesday to consider if state insurance law permits certain clauses in fire loss policies lowering coverage ceilings in exchange for premium reductions.

The seven-judge New York Court of Appeals unanimously accepted three certified questions from the Second Circuit that will determine the enforceability of a Pacific Indemnity Co. policy clause that drastically reduced the amount of coverage available to a Manhattan real estate developer who suffered millions in losses from a fire.

The apportionment-of-loss clause transformed a $14...
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