• New Jersey Supreme Court Requires Exhaustion of All Other Applicable Insurance Before N.J. Property-Liability Guaranty Association Pays Statutory Benefits For An Insolvent Insurer’s Long-Tail Claims
  • September 27, 2013 | Authors: Lorraine M. Armenti; Eduardo DeMarco; Christopher S. Franges
  • Law Firm: Coughlin Duffy LLP - Morristown Office
  • On September 24, 2013, in Farmers Mutual Fire Ins. Co. of Salem v. NJPLIGA, ** N.J. ***, 2013 N.J. LEXIS 902, (2013), the New Jersey Supreme Court ruled that all other applicable insurance must be exhausted before the New Jersey Property-Liability Insurance Guaranty Association (“PLIGA”) is required to pay statutory benefits on behalf of an insolvent insurer for claims involving continuous indivisible injury or property damage occurring over a period of years as a result of exposure to injurious conditions (i.e. long-tail claims). The Court’s opinion gives strong support to policyholders who will argue that their solvent insurers must pick up the insolvent insurer’s share of such claims.