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Tuesday, February 18, 2014

Environment - Anti-Kiger Environmental Insurance Coverage Legislation to be considered Thursday in Senate committee

HB 1241, which passed the House 57-36, will be heard in Senate Committee at 10 a.m. on Thursday, February 20, 2014. The bill digest:

Environmental coverage. Specifies the manner in which the meaning of "pollutant", as used in certain liability insurance policies, must be construed.
The bill would add a new chapter IC 27-7-14 to the Indiana Code, setting by statute how the term "pollutant" shall be construed in insurance policies in the future.

Put more bluntly, the bill would eliminate insurance coverage for environmentally contaminated properties. The bill is being referred to by industry and local government as "The Anti-Kiger Environmental Insurance Coverage Legislation," referring to the 1996 Indiana Supreme Court decision, American States Insurance Co. v. Kiger and the long line of cases following it. This case law is what sets the standard for the insurance recovery rights Indiana property owners possess in remediating contaminated sites.

Opponents of the bill point out that:

Posted by Marcia Oddi on February 18, 2014 07:39 PM
Posted to Environment