Texas Court rules on asbestos exclusion in insurance policies
On March 11, 2009, a Texas state court ruling created a sort of loophole for policyholders facing liability on different types of asbestos claims
Austin, Texas (MesotheliomaCancerNews.com) — On March 11, 2009, a Texas state court ruling created a sort of loophole for policyholders facing liability on different types of asbestos claims.
According to a recent report in the Insurance Journal, “Judge J. Manuel Bañales of the 105th Judicial District Court of Nueces County, Texas, ruled that “asbestosis” exclusion bars coverage only for asbestosis claims and does not bar coverage for claims involving mesothelioma, lung cancer, pleural plaques or any other asbestos-related disease.”
The ruling was brought about by ASARCO LLC on a claim of an asbestosis exclusion sold by Fireman’s Fund Insurance Company.
As part of a partial summary judgment, ASARCO was seeking a ruling for an exclusion applied only to claims arising from the specific disease known as asbestosis, and not specifically mesothelioma, lung cancer, or any other type of asbestos-related illness.
Challenging that stance, Fireman’s Fund contended that the exclusion banned coverage for all asbestos-related diseases.
ASARCO, a copper company based in Arizona filed for bankruptcy protection in 2005.
The report states, “At issue in the coverage action is a determination of insurance coverage for past, present and future asbestos liabilities.”
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