Union Carbide Corp. v. Affiliated FM Insurance

Tom, J.P.,

dissents in part in a memorandum as follows: Plaintiff obtained general liability and marine insurance from nonparties Employers Liability Assurance Corp. and Appalachian Insurance Co. These underlying policies each provide an “annual aggregate” limit of liability. Reinsurance (denominated “excess policies” by defendants) was provided by appellant insurers under a second tier of policies, each having a three-year duration. Each such excess policy, issued by a group of participating insurers, includes a “follow the form” clause, stating that it “shall follow all the terms, insuring…