Massachusetts Bay Transportation Authority v. Allianz Insurance

In this case we revisit the question whether the lower limits of excess insurance benefits “drop down” to fill a void in underlying insurance created by the insolvency of an underlying carrier. See Vickodil v. Lexington Ins, Co., 412 Mass. 132 (1992); Gulezian v. Lincoln Ins. Co., 399 Mass. 606 (1987); Massachusetts Insurers Insolvency Fund v. Continental Casualty Co., 399 Mass. 598 (1987). The parties filed cross motions for summary judgment. A judge in the Superior Court allowed the plaintiff’s (MBTA) motion with respect to its contract claim against Allianz Insurance Company, Inc.…