Southern Silica Can Seek Guaranty Coverage for Insolvent's Policy Periods

BATON ROUGE, La. - A state appeals court has ruled that an amended statute requiring insureds to seek coverage from all solvent insurers for periods where coverage was provided by a now-insolvent insurer is unconstitutional, substantive in nature and cannot be applied retroactively to prevent recovery from a state guaranty association. Southern Silica of Louisiana Inc. v. Louisiana Insurance Guaranty Association, No. 2006 CA 2023 (La. Ct. App., 1st Cir.).

The July 13 decision by the First Circuit Louisiana Court of Appeal reverses a prior trial court holding and could mean that Louisiana's Insurance Guaranty Association (LIGA) is obligated to …