The Delaware Supreme Court certified an allocation question to the New York Court of Appeals that could have a major impact on policyholders’ recoveries for multi-year claims. A multi-year claim is one where the damages extend over a number of policy years, such as environmental claims or asbestos claims.
The certified question is:
Under New York law, is the proper method of allocation to be used all sums or pro rata when there are non-cumulation and prior insurance provisions?
Policyholders whose policies are governed by New York law should closely follow this case because it could drastically impact the amount they can recover. Continue reading “Delaware Supreme Court Sends Allocation Question to New York Court of Appeals”