The court, in a unanimous ruling, found that all such claims derived from the deceased person's injuries including death.

The American Insurance Association and the Property Casualty Insurers Association of America, in separate statements, said the decision in a case brought by Christine R. Vassiliu against Prudential Property Casualty Insurance Co. and others would have a positive effect on the marketplace.

AIA said that the decision "effectively closes the floodgates of litigation" and "decreases the exposure of all personal automobile insurers" in the state.

"We hail the Supreme Court's decision because it recognized the plain language and clear limits of the insurance contract at issue and it recognized the intent of New Jersey law," said Richard Stokes, regional manager and counsel of the PCI.

In June of 1995, Hristos Vassiliu was killed in an auto accident involving Shaun O'Brien in Franklin Township, N.J.

Mr. Vassiliu's wife, Christine Vassiliu, sued Mr. O'Brien for wrongful death, seeking compensation for her husband and his survivors, herself and child. She also sued Daimler-Chrysler Corp. in a product's liability suit resulting from the accident.

Daimler-Chrysler settled the liability suit prior to Mr. O'Brien's trial for $215,000, without admitting liability.

Mr. O'Brien was found responsible for the accident. Ms. Vassiliu was awarded $175,000 on her survival claim and $1.75 million for wrongful death. During the trial, Mr. O'Brien filed for bankruptcy and Ms. Vassiliu agreed that payment of damages would be limited to his insurance coverage.

Ms. Vassiliu sought compensation for damages for both her husband and his heirs, arguing that "each qualified for the ?per person' coverage of the policy." The trial court and state Appellate Division agreed with this argument.

But the Supreme Court rejected the survivor claim, ruling that only the deceased person was covered under the "per person" limit.

The court agreed with the Appellate Division that the insurers are entitled to credits for the products liability settlement. Under that settlement, both Prudential and Selective, which issued $100,000 each in coverage under underinsured motorist coverage to Mr. Vassiliu, can claim credit and do not have to pay.

Ms. Vassiliu is entitled to $50,000 in liability insurance coverage from Mr. O'Brien's insurers, New Hampshire Insurance Company and Prudential, the court found.