Opinion ID: 1280881
Heading Depth: 1
Heading Rank: 5

Heading: Coverage triggered when injury manifested

Text: Under this theory, damage is deemed to occur at the time it is manifested or discovered, thus triggering coverage for all the ensuing damage under the policy in effect at the time of manifestation, even if some damage actually occurred earlier but was undetected. Insurer argues our decision in Spinx Oil Co. v. Federated Mut. Ins. Co., 310 S.C. 477, 427 S.E.2d 649 (1993), is dispositive. In Spinx, an environmental pollution case, we held coverage was triggered when the damage was first manifested. The policy in question provided coverage for a pollution incident that commenced on or after the effective date. Because of the difficulty of determining when the pollution incident actually commenced, we interpreted commenced to mean when damage was first discovered. In so holding, we relied on a case holding damage occurred when it was first discovered, Mraz v. Canadian Universal Ins. Co., 804 F.2d 1325 (4th Cir.1986), and concluded commence and occur should be interpreted synonymously. We decline to follow Spinx in this case. In Spinx, we were concerned solely with construing the commence language of that particular policy and not analyzing a standard occurrence policy which covers damage caused by a continuous or repeated exposure. Applying the manifestation trigger used in Spinx to this case would conflict with the plain language of the policy. Several courts have rejected the manifestation trigger because nothing in the standard occurrence policy requires that the property damage actually be manifested or discovered during the policy period. See, e.g., Sentinel Ins. Co. v. First Ins. Co. of Hawai'i, Ltd., 76 Hawai'i 277, 875 P.2d 894 (1994); Harford County v. Harford Mut. Ins. Co., 327 Md. 418, 610 A.2d 286 (1992); Trustees of Tufts University v. Commercial Union Ins. Co., 415 Mass. 844, 616 N.E.2d 68 (1993). Accordingly, we reject a manifestation trigger as the appropriate trigger of coverage.