Takeaways For Insurers From NJ High Court's Landmark Case

Law360, New York (November 5, 2013, 11:52 AM EST) -- In Farmers Mutual Fire Ins. Co. of Salem v. New Jersey Property-Liability Insurance Guaranty Association, 2013 N.J. (Sept. 24, 2013), the New Jersey Supreme Court addressed the issue of whether the New Jersey Property-Liability Insurance Guaranty Association (PLIGA) must pay for losses otherwise allocable to an insolvent insurer in the context of long-tail environmental claims. The Farmers court ruled that a 2004 amendment to the PLIGA Act, N.J.S.A. 17:30A-1 et. seq., superseded Sayre v. Insurance Company of North America, 305 N.J. Super. 209, 214 (App. Div. 1997), thereby exempting PLIGA from the Owens-Illinois loss allocation until the policy limits of all...

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