4th Cir. Affirms Pro Rata Rule, Aggregate Limits in Insurance Dispute

RICHMOND, Va. - A federal appeals court has upheld a decision to adopt a pro rata rule for coverage of claims asserted by former Bethlehem Steel workers against an installer of asbestos-containing products, and that such claims are subject to the aggregate limits of several insurance policies' completed operations provisions. In Re: The Wallace & Gale Co., No. 02-2389 (4th Cir.).

The Fourth Circuit U.S. Court of Appeals issued the decision Oct. 6, holding that the application of the pro rata method was consistent with Maryland law, and that no ambiguities existed as to whether the completed operations provisions contained …