NJ High Court's Major Shift In Favor Of Policyholders

Law360, New York (October 16, 2013, 6:37 PM EDT) -- Policyholders with environmental, toxic tort and other long-tail liability claims in New Jersey are not responsible for covering the shares of insolvent insurers, as recently confirmed by the New Jersey Supreme Court in Farmers Mut. Fire Ins. Co. of Salem v. N.J. Property-Liability Ins. Guar. Ass’n (N.J. Sept. 24, 2013). This decision is a significant victory for policyholders, since it removes any prior suggestion by insurers that policyholders could be required to bear the risk of insurer insolvencies based on early Supreme Court precedent.

The decision...
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