Munich Re Unit Loses Maritime Insurance Clash Over Choice of Law

A Munich Re insurance unit lost a coverage dispute with a boat owner who held its maritime policy, after the First Circuit said policy terms on which state laws govern were too ambiguous.

A lower court erred in holding that New York law applies to the insurance matter, the US Court of Appeals for the First Circuit ruled Wednesday.

The boat owner, Martin Andersson, argued that New York law applies only to contract interpretation, not unfair settlement claims or the insurer’s failure to issue a coverage decision in time.

“The choice-of-law provision is ambiguous as to what law applies,” the ...