Abstract
Two new cases have changed the game in New Jersey for allocating defense and indemnity costs in long-tail environmental or toxic tort claims. The high court has established that solvent insurers must absorb insolvent insurers’ share of costs in long-tail claims until all solvent insurance is exhausted, at which time insolvent shares will be borne by the Property-Liability Guaranty Association. In addition, the high court has established that insurers have a right of contribution against other insurers when they pay more than their allocated share of defense or indemnity.
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