Insurer Must Defend Asbestos Claims Against Dissolved Insured Corporation Under New Jersey Law
Posted on Apr 18, 2014 in Litigation, Product Liability | Comments Off on Insurer Must Defend Asbestos Claims Against Dissolved Insured Corporation Under New Jersey Law
An insurance company that accepted premiums from and agreed to defend and indemnify a New Jersey valve manufacturer for tortious conduct during designated coverage periods must defend suits brought by a group of plaintiffs for alleged asbestos exposure during those time periods, even though the insured had declared bankruptcy and dissolved at the time the suits were initiated. The Appellate Division of the Supreme Court of New York, First Department, explained that the “contractual coverage obligations should not be nullified on the mere happenstance that the corporation was dissolved at the time these latent injuries manifested.”
