CGL Insurer, Not Insurance Fund, Liable for Remainder of Settlement, N.J. High Court Rules

  • Opinion

TRENTON, N.J. — The New Jersey Supreme Court has ruled that a city’s membership in a public entity joint insurance fund (JIF) did not trigger the “other insurance” clause in its CGL policy, therefore the CGL insurer must pay the remainder of a wrongful death action settlement.

In a Feb. 16 opinion, the court explained that the JIF does not provide “insurance” to its members; rather, it affords liability protection to public entities through “self-insurance.” The CGL insurer’s “other insurance” clause was not triggered because “self-insurance” protection through JIF membership is not “other insurance,” the panel reasoned. The CGL coverage …


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