Court says exclusion is unclear; the Indiana Supreme Court has held that an 'absolute' pollution exclusion did not bar coverage

Article Abstract:

The Indiana Supreme Court ruled in American States Insurance Co. v. Kiger's Sunoco that a pollution liability exclusion was ambiguous and did not bar insurance coverage for damages from a gasoline leak from Kiger's Sunoco's underground tanks. The absolute pollution exclusion has been used to deny insurance coverage in many other cases. In each of these cases the court decided to construe the policy language against the insurer and found that if an exclusion was intended the policy language must so state explicitly. Kiger's Sunoco is thus based on principles which the insurance community should bear in mind.

Cases, Pollution liability insurance, Insurance policies, Indiana, Insurance policy exclusions, states

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CERCLA does not articulate whether shareholders and parent corporations can be liable under Superfund; as a result, federal circuit courts are in conflict

Article Abstract:

Conflicts among circuit court rulings have triggered efforts to reform the Comprehensive Environmental Response, Compensation, and Liability Act, often referred to as the Superfund law. The Sixth Circuit Court used traditional 'veil piercing' standards to limit superfund liability of corporations in United States v. Cordova Chemical Co. of Michigan in 1977. Though this standard is generally consistent with corporate law, it has not been followed in other circuits. Reforms of the Superfund statute would create a more predictable, uniform system of corporate liability.

United States, Environmental law

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Washington state insurers face accelerating payouts; underwriters that had been able to deflect Superfund liability now must contend with a new set of rules

Article Abstract:

Washington State has adopted a set of regulations designed to speed up litigation over whether general liability policies cover environmental cleanup and related costs. A 1992 report found 42% of all Superfund money paying for insurance litigation in 1989, while Washington estimates 80% of all environmental cleanup money spent there goes to litigation. Insurers opposed the scope of authority the new rules give the Insurance Commissioner, and may either mount a constitutional challenge or wait for a ruling.

Liability insurance, Washington (State)

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