Farmers Can't Tap NJ Guaranty Group For Enviro Coverage

Law360, New York (September 24, 2013, 5:26 PM EDT) -- The New Jersey Supreme Court ruled against Farmers Mutual Fire Insurance Co. on Tuesday, finding that solvent insurers on the hook in long-tail environmental contamination cases have to exhaust their coverage of cleanup costs before a state guaranty association for insolvent carriers must contribute.

Farmers wanted the New Jersey Property-Liability Insurance Guaranty Association to step in the shoes of an insolvent insurer that was partially responsible for cleanup expenses at two residential properties, based on Owens-Illinois Inc. v. United Insurance Co. That 1994 ruling treated progressive...
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