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WERNER INDUS., INC. v. FIRST STATE INS. CO.

217 N.J. Super. 436 (1987)

526 A.2d 236

WERNER INDUSTRIES, INC., PLAINTIFF-APPELLANT, v. FIRST STATE INSURANCE COMPANY, DEFENDANT-RESPONDENT. THE RICE AGENCY, A NEW JERSEY CORPORATION, DEFENDANT-THIRD-PARTY PLAINTIFF, v. WEGHORN INTERNATIONAL, INC., THIRD-PARTY DEFENDANT.

Superior Court of New Jersey, Appellate Division.

Decided May 6, 1987.

Attorney(s) appearing for the Case

Jonathan S. Cole argued the cause for appellant Werner Industries Inc. (Cole, Geaney, Yamner & Byrne, attorneys; Jonathan S. Cole, on the brief).

Robert F. Walsh argued the cause for respondent First State Insurance Co. (Siff, Newman, Rosen & Parker, attorneys; Robert F. Walsh, on the brief).

Briefs were not submitted on behalf of The Rice Agency and Weghorn International, Inc.

Before Judges PRESSLER, BAIME and ASHBEY.

The opinion of the court was delivered by BAIME, J.A.D.

This appeal presents a question of first impression. At issue is whether an excess liability carrier is obliged to pay a claim falling within the coverage of the underlying insurance where the primary insurer has become insolvent. The surplus umbrella policy issued in this case provides that the secondary insurer will pay sums in excess of the "amounts recoverable" under the underlying insurance. We hold that...

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