‘Renewal’ Policy Must Contain the Same Terms As Original, 3rd Circuit Rules

PHILADELPHIA — For an insurance policy to be considered a “renewal,” it must contain the same, or nearly the same, terms as the original contract, the 3rd Circuit U.S. Court of Appeals has ruled.

In an Oct. 15 opinion addressing an issue of first impression in the Circuit, the appellate court held that an insurer breached the original policy by failing to offer its policyholder a “renewal” contract with substantially similar terms.

Indian Harbor Insurance Co. issued F&M Equipment Ltd. f/k/a Furnival Machinery Co. a Pollution and Remediation Legal Liability Policy in December 2001. The policy’s terms and conditions included …