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
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
