MASSACHUSETTS SUPREME JUDICIAL COURT FOLLOWS THE MINORITY RULE IN ESTABLISHING PRIORITY OF COVERAGE BETWEEN TRUE EXCESS POLICIES AND DE FACTO EXCESS POLICIES IN THE AUTOMOBILE LIABILITY CONTEXT

by | May 13, 2021 | Liability

As an issue of first impression, the Massachusetts Supreme Judicial Court adopted the minority rule on priority of coverage, holding that after a primary automobile liability policy is exhausted, true excess policies and policies that are excess by virtue of other insurance clauses, will share the loss equally. The Court rejected the majority rule which required the policy that had excess status only because of competing other insurance clauses would have to respond to the loss before a true excess policy would.

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