Twin Occurrences? The $3.5 Billion Question. Michael F. Aylward, Esq. Morrison Mahoney & Miller LLP (2002). The Obscure Issue of Multiple “Occurrences”. A misunderstood and mixed-up area of insurance law. Few precedents/fewer for first party. Insurers reluctant to litigate.
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Michael F. Aylward, Esq.
Morrison Mahoney & Miller LLP (2002)
(Source: Swiss Re, Insurance Information Institute-2001)
Business Interruption: $11 billion
Liability Claims: $10 billion
-----WTC Towers: $3.5 billion
-----Other Losses: $6 billion
Aviation Liability: $3.5 billion
Life Insurance: $2.7 billion
Workers Compensation: $2 billion
Event Cancellation: $1 billion
Hull Losses: $500 million
S.R. International v. World Trade Center Properties
Silverstein v. Ace Bermuda, XL
World Trade Center Properties v. Travelers
2)At 8:46 am. on the morning of September 11th, a hijacked airliner crashed into the North Tower of the World Trade Center, and 16 minutes later a second hijacked plane struck the South Tower.
Ace-Bermuda and XL settled for single “occurrence” limits in February 2002:
Employee conspired to steal diesel fuel from petroleum processor on 650 occasions over the course of one year
Policy had $100,000 per occurrence deductible
Insured wanted only one “occurrence”
California Court of Appeals agreed:
Jewelry store employee stole goods totaling $117,000 over 3 months
$10,000 deductible for “each claim for loss or damage (separately occurring)”
Insured wanted one “occurrence”
Court of Appeals found multiple “occurrences”