NEW JERSEY MANUFACTURERS INS. CO. V. NATIONAL
CASUALTY CO.
A-0737-09T3 4-29-10
An insurer against which a Rova Farms claim is asserted may
raise as an affirmative defense that the case could not have
been settled by deposit of its policy limit plus whatever amount
the insured -- or in this case the excess insurer -- would have
been willing and able to contribute. An insurer against which a
Rova Farms claim is established is only liable for prejudgment
interest above its policy limit for the period of time following
the insurer's breach of its duty of good faith in settlement
negotiations.
