6th Cir. Says Insurers Did Not Violate ‘All-Sums’ Rule by Reallocating Benzene Settlement

CINCINNATI — The 6th Circuit U.S. Court of Appeals found that a chemical company’s insurers did not violate Ohio’s “all-sums” rule by reallocating funding for a benzene exposure settlement to policies reinsured by the company’s captive reinsurer, explaining that the insured can still be responsible for some of the financial burden.

In a Jan. 13 opinion, the panel majority explained that under the “all-sums” method, insurers are permitted to obtain contribution from all responsible parties, including the insured.

Two individuals sued Chemical Solvents Inc. for injuries caused by benzene-containing chemicals it allegedly sold to their employer. The action settled and …