Insurers Dodge $381 M Y2K Bullet The Year 2000 glitch is wreaking more havoc in the legal system than it ever did in any computer system.
In the latest case decided, insurers dodged a $381 million remediation bullet by successfully arguing that a property policy's design defect and inherent vice exclusions bar coverage for Y2K-related losses.
Late last month, in GTE Corp. v. Allendale Mutual Ins. Co., a federal district court in New Jersey held that five primary and excess property insurers are not responsible for any of GTE's $381 million in Y2K remediation expenses. The insurers in the case, in addition to Allendale, were Affiliated FM Insurance Co., Allianz Insurance Co., Federal Insurance Co. and Industrial Risk Insurers.
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