United States:
Viking Pump: New York Court Of Appeal Holds That Consolidated Edison Pro Rata Allocation Rule And Horizontal Exhaustion Rule Do Not Apply Under Facts Of Case
05 May 2016
Duane Morris LLP
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The New York Court of Appeal on Tuesday, May 3, held that the
Consolidated Edison pro rata allocation rule does not
apply where the policies have prior insurance and non-cumulation
clauses. The Court held that the pro rata rule in Consolidated
Edison depends on policy language and that the prior insurance
and non-cumulation clause is inconsistent with a pro rata approach.
However, the Court did say that prior insurance and non-cumulation
clauses would be enforced as anti-stacking clauses. Such
enforcement could limit the amount of coverage available to a
policyholder. The Court of Appeal also held that under the
circumstances of the case, horizontal exhaustion would not
apply.
To view this decision, please visit the New York Courts website.
Disclaimer: This Alert has been
prepared and published for informational purposes only and is not
offered, nor should be construed, as legal advice. For more
information, please see the firm's
full disclaimer.
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