Liability For Long-Tail Claims: Pro Rata Or All Sums?

Law360, New York (November 6, 2009, 5:18 PM EST) -- In the six years from 2003 through 2008, five state supreme courts joined the ranks of states that had adopted a “pro rata” approach to allocating liability among insurance policies for claims involving damage that spans multiple policy years. During that period, no state supreme court adopted an “all sums” approach to allocating such liability.

Nearly 30 years after the debate between pro rata and all sums allocation began, the debate appeared to be nearing its end. Then, in January of this year, the Wisconsin Supreme...
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