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Expert Analysis

The Perilous 'Superperil' Ruling In NJ Storm Surge Case

Law360, New York (April 2, 2015, 12:02 PM EDT) -- The Superior Court of New Jersey, Essex County's ruling in Public Service Enterprise Group Inc. v. Ace American Insurance Co.[1] on March 23 follows a line of thought advanced by many policyholder lawyers that including a definition of "Named Windstorm" in a property policy — typically to provide contract certainty in defining an occurrence and/or the application of deductibles — creates a new and unlimited "superperil" that trumps other policy wordings, including exclusions and sublimits for flood. This argument, like the notion that storm surge inundation is not "flood," has been rejected by almost every court to have seriously considered the issue....

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