Section 10.5 During the Policy Period

• Library: Insurance Practice 2015

Under the “occurrence” form, the bodily injury or property damage must occur during the policy period. Coverage does not depend on when the negligent or wrongful act took place. If a defective product manufactured 50 years ago injures someone today, today’s policy covers. Universal Reinsurance Corp. v. Greenleaf, 824 S.W.2d 80 (Mo. App. E.D. 1992). The significant date for determining coverage is the date of loss. United States Fid. & Guar. Co. v. Houf, 695 S.W.2d 924 (Mo. App. E.D. 1985); Shaver v. Ins. Co. of N. Am., 817 S.W.2d 654 (Mo. App. S.D. 1991); Hawkeye-Sec. Ins. Co. v. Iowa Nat’l Mut. Ins. Co., 567 S.W.2d 719 (Mo. App. W.D. 1978); Kirchner v. Hartford Accident & Indem. Co., 440 S.W.2d 751 (Mo. App. W.D. 1969). In Continental Insurance Cos. v. Northeastern Pharmaceutical & Chemical Co., 842 F.2d 977 (8^th Cir. 1988), the court held that environmental damage occurs when toxic wastes are released.

It is sometimes difficult to determine when bodily injury or property damage occurs, particularly when there may be exposure to harmful conditions over several years during different coverage periods. If there are successive insurers on the risk, questions arise concerning the extent of each insurer’s liability. Because bodily injury or property damage must occur during the policy period, several theories of coverage triggers have been applied by the courts.

The exposure theory holds that tissue damage occurs with each exposure to the...