Opinion ID: 1474342
Heading Depth: 1
Heading Rank: 1

Heading: Context of Litigation

Text: Since the early 1960's, HCC has made Celcon®, an acetal copolymer resin product. Celcon® is sold in raw pellet form to third parties, who use it to manufacture many different products. From 1978 until the late 1980's, several third-party manufacturers used Celcon® to make insert plumbing fittings. These insert plumbing fittings were incorporated into plumbing systems which were installed into apartments, condominiums, mobile homes, and other residences. Contractors, developers, plumbers, and homeowners now allege that the plumbing systems incorporating these insert fittings are defective. Manufacturers also have alleged that Celcon® caused their plumbing systems to fail. In this action, HCC seeks to enforce excess general liability insurance coverage that it purchased from London to indemnify it in connection with products liability. HCC purchased several claims-made excess insurance policies from London. Those policies exist in various layers above the primary level of coverage for the period from May 1, 1988, through May 1, 1989. Claims-made policies provide coverage only where the underlying claim is first made, in writing, during the policy period. Therefore, the initial focus under a claims-made policy is on the date of the first written assertion of the claim, rather than the date of the injury or the damage alleged within that claim. [1] Claims-made policyholders often purchase, for an additional premium, policy enhancements. In return for an extra premium, additional years of coverage are purchased. Such insurance is commonly referred to as tail coverage. In the present case, HCC bought such tail coverage, or policy enhancements, from London.