While it is often useful to keep the contractual liability and insurance tracks separate when analyzing risk transfer, there are instances when the tracks become enmeshed. One place where liability and coverage intersect is with the anti-subrogation rule.
This rule has been the law in New York for almost 20 years but as demonstrated in the recent decision in Preferred Construction, Inc. v. Illinois National Insurance Company, 2012 LEXIS 19395 (2d Cir. 2012), new perils for insureds are emerging as anti-subrogation arguments evolve.
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