New York Court of Appeals
In the Matter of Viking Pump, Inc., Insurance Appeals. Viking Pump, Inc., Appellants; TIG Insurance…
May 3, 201627 N.Y.3d 244
Summary
The New York Court of Appeals answered two certified questions from the Delaware Supreme Court, holding that (1) all‑sums allocation applies when excess policies contain non‑cumulation or prior‑insurance provisions, and (2) vertical exhaustion, not horizontal exhaustion, governs the attachment of higher‑layer excess policies. The court based its holdings on a strict reading of the contract language and rejected the pro‑rata approach advocated by the excess insurers.