Keyspan Gas East Corp. v Munich Reinsurance America, Inc.

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At issue in this case involving long-tail insurance claims was whether, under the “pro rata time-on-the-risk” method of allocation, Century Indemnity Company was liable to its insured, KeySpan Gas East Corporation, for years outside of its policy periods when there was no applicable insurance coverage available on the market.KeySpan sought a declaration of coverage and determination of liability owed under the policies issued by Century. Supreme Court denied Century’s motion for partial summary judgment with respect to those years in which the relevant insurance coverage was otherwise unavailable in the marketplace. The Appellate Division reversed, determining that, under the applicable insurance policies, Century did not need to indemnify KeySpan for losses that were attributable to time periods when liability insurance was otherwise unavailable in the marketplace. The Court of Appeals affirmed, thereby rejecting application of the unavailability rule for time-on-the-risk pro rata allocation. View "Keyspan Gas East Corp. v Munich Reinsurance America, Inc." on Justia Law