Federal Court Predicts Georgia Law is Pro Rata Time On Risk AllocationMarch 29, 2016 |
Michael Kotula and Michael Jones obtained summary judgment from the United States District Court for the Southern District of New York in an asbestos bodily injury coverage matter. The Court held that the Asbestos Exclusion barred coverage for all claims, including claims that alleged asbestos and other non-asbestos related injuries. Additionally, the Court held that the Georgia Supreme Court would adopt a pro rata time on the risk allocation rule that spreads loss over the entire period that is triggered. Further, the Court held that the policyholder was responsible for orphan shares attributed to the time on the risk of insolvent carriers. The Court also rejected arguments that the Georgia Insurer Insolvency Act dictated a different result.