Q
My client is a property manager. A lead paint claim was paid under the client's policy in the amount of $375,000. A second claim was brought after the first one was paid; this claim was made by a different party living in a different location.
The CGL form has a per occurrence limit of $500,000, subject to a $1,000,000 general aggregate. Since both claims are lead paint claims, the insurer is considering them to be one occurrence and, therefore, there is only $125,000 available for this second claim. We contend that there are two separate claims by two separate parties living in two different locations, and the same type of claim is not relevant to the definition of “occurrence”. What is your opinion?
Maryland Subscriber
A
The insurer is taking a view of the meaning of occurrence that is logical, considering the definition uses the phrase “continuous or repeated exposure to substantially the same general harmful conditions.” We do not agree with the insurer, but we can see the reasoning behind its interpretation. In our opinion, the phrase “continuous or repeated exposure to the same general harmful conditions” means the same general harmful conditions at the same location happening over a period of time to the same claimants. In this case, if the claimants were all in the same family or lived in the same location and were exposed to the same harmful conditions over a period of time, then the insurer would be on stronger ground with its denial. However, you are describing different locations and different claimants. Who is to say that all the claimants from the different locations were injured in the same way and in the same time period? We do not believe that the insurer is correct in this instance.
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