The decision could be a cautionary tale for insurance companies about policy language seeking to share liability with entities formed under New Jersey's joint insurance fund statute. (Credit: Studio_East/ Adobe Stock) The decision could be a cautionary tale for insurance companies about policy language seeking to share liability with entities formed under New Jersey’s joint insurance fund statute. (Credit: Studio_East/ Adobe Stock)

An insurance company is obligated to pay a nearly $1.2 million wrongful death settlement after the New Jersey Supreme Court ruled that it can’t compel a municipal joint insurance fund to contribute.

An insurance policy with Star Insurance Co. provides coverage to Long Branch after other insurance coverage is exhausted, but the liability protection provided by the city’s membership in Statewide Insurance Fund is self-insurance, which does not trigger that clause in the Star policy, the Supreme Court ruled.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.