Since the seminal case of Rova Farms v. Investors, 65 N.J. 474 (1974), it had virtually been conceded by insurers that if they decided to try a case, and the verdict exceeded its insured’s policy limits, the carrier would pay the judgment, assuming it was upheld.
The reasoning behind Rova was simple: If the carrier was going to treat any verdict, even an excess verdict, as its own, it must bear all the consequences of such a verdict.
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