New York Court of Appeals, 1979

In re the Ancillary Receivership of Interstate Insurance

New York Court of Appeals · Decided June 26, 1979 · Cooke and Judges Jasen, Gabrielli, Jones, Wachtler, Fuchsberg and Meyer Concur in Memorandum

47 N.Y.2d 909; 393 N.E.2d 476; 419 N.Y.S.2d 482; 1979 N.Y. LEXIS 2169

Cases that cite this one

6 later published cases cite this decision.

In re the Liquidation of Consolidated Mutual Insurance (N.Y. 1983)
Paramount Communications, Inc. v. Gibraltar Casualty Co. (N.Y. 1997)
In re the Liquidation of Midland Insurance (New York Supreme Court 1990)
Royal Bank & Trust Co. v. Superintendent of Insurance (New York Supreme Court 1990)
Universal Builders Supply, Inc. v. Bayly (Appellate Division of the Supreme Court of New York 1989)
Snyder Tank Corp. v. Superintendent of Insurance (New York Supreme Court 1988)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion

OPINION OF THE COURT

Memorandum.

The order of the Appellate Division should be affirmed, with costs.

When its liability insurance carrier, the Interstate Insurance Company, became insolvent, petitioner, Merritt Division of Murphy Pacific Marine Salvage Corporation, was forced to satisfy a judgment out of its own assets. Seeking reimbursement, petitioner filed a claim with respondent, the Superintendent of Insurance, purportedly in accordance with the provisions pertaining to the New York Property and Liability Insurance Security Fund (Insurance Law, § 334). Respondent *911 denied the claim on the ground that the incident out of which liability arose occurred in Virginia waters, while the statute only covers "risks located or resident in” New York (§ 334, subd 2). In this special proceeding in which petitioner seeks to compel payment of its claim out of the fund, both Special Term and the Appellate Division have denied the requested relief. They did so on the basis, inter alia, that the term risk "has a commonly accepted meaning in the insurance business, viz., a 'risk’ is the physical property or person insured” (Matter of Guardian Life Ins. Co. v Chapman, 302 NY 226, 243). Inasmuch as the fund covers only "risks” located in New York, liability stemming from an accident on a ship off the coast of Virginia can reasonably be deemed nonreimbursable.

Chief Judge Cooke and Judges Jasen, Gabrielli, Jones, Wachtler, Fuchsberg and Meyer concur in memorandum.

Order affirmed.

Case-law data current through December 31, 2025. Source: CourtListener bulk data.