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Friday, August 31, 2012

IN THE MATTER OF THE LIQUIDATION OF INTEGRITY INSURANCE COMPANY/SEPCO CORPORATION IN THE MATTER OF THE LIQUIDATION OF INTEGRITY INSURANCE COMPANY/MINE SAFETY APPLIANCES COMPANY A-3850-10T1/ A-5191-10T1


 IN THE MATTER OF THE LIQUIDATION OF INTEGRITY
          INSURANCE COMPANY/SEPCO CORPORATION
          IN THE MATTER OF THE LIQUIDATION OF INTEGRITY INSURANCE
          COMPANY/MINE SAFETY APPLIANCES COMPANY
          A-3850-10T1/ A-5191-10T1 (CONSOLIDATED)
          In these appeals from the denial of toxic tort claims
     asserted against Integrity Insurance Company in Liquidation
     by Sepco Corporation and Mine Safety Appliances Company, we
     applied choice of law principles to the insurance contracts
     at issue and concluded that the trial court properly held
     that the law of New Jersey applied to the question of the
     allocation of coverage among excess insurance policies
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potentially covering the claims for which recovery was
     sought.  We further affirmed the court's determination
     that, under New Jersey's pro rata approach to allocation,
     which takes account of the insurer's time on the risk and
     the degree of risk that was assumed, Integrity's excess
     policies were not triggered by these claims.  We rejected
     the insureds' argument that an "all sums" allocation,
     recognized by the courts of California and Pennsylvania,
     which permits the insured to recover in full under any
     triggered policy that it chooses, was applicable, thereby
     triggering Integrity's coverage. 
08-23-12