After Sandy, NY Insurers May Lose Favored Litigation Tool

Law360, New York (May 21, 2013, 8:43 PM EDT) -- A New York Democrat on Friday proposed outlawing policy language that insurers use to deny coverage for losses that stem from both insured and excluded causes, legislation inspired by Superstorm Sandy that would nix insurer-friendly precedent in New York and bring it in line with more catastrophe-prone states.

New York Assemblyman Phil Goldfeder, D-Rockaway Beach, introduced a bill that would prevent insurance companies from using anti-concurrent clauses, which wipe out coverage when a loss has several causes and one of those causes is excluded under a policy.

The anti-concurrent clause often comes into play when there's property damage from both wind,...

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