2nd Circ.'s Olin Ruling Could Prove Costly For Insurers
By Bibeka Shrestha
Law360, New York (December 21, 2012, 6:09 PM EST) -- The Second Circuit's Wednesday ruling that Olin Corp.'s excess insurance policy could be triggered by environmental damage occurring outside the policy period shows that insureds in New York can use contract language to counteract the pro rata allocation method for long-tail claims and put carriers on the hook for more losses, experts say.
The decision makes clear that while the pro rata allocation rule — which holds insurers responsible for only the damage that occurs within their policy period — is the default rule in New...