IMO INDUSTRIES, INC. V. TRANSAMERICA CORPORATION ET AL.
A-6240-10T1
This lengthy opinion addresses many issues about liability insurance coverage for asbestos-related personal injury claims and the "continuous trigger" allocation methodology established by the Supreme Court in Owens-Illinois, Inc. v. United Insurance Co., 138 N.J. 437 (1994), and Carter-Wallace, Inc. v. Admiral Insurance Co., 154 N.J. 312 (1998). With respect to the lead "exhaustion issue" in these appeals, we hold that insurance policies providing coverage of the insured's defense costs "outside the limits" of the indemnification coverage of the policies are exhausted by allocation of responsibility under the Owens-Illinois and Carter-Wallace methodology, and that defense costs are not payable for an indefinite time until the insurer actually makes indemnification payments reaching the limits of those policies.
