CA1: old insurance policy not pro-rated

OneBeacon Insurance v. Georgia-Pacific, No. 06-1993.  This is an insurance case, which dates back to 1967, when Employers Surplus Lines Insurance Company ("Employers") issued a comprehensive general liability ("CGL") policy to Georgia-Pacific Corporation.  The policy “...provided for a $10 million annual aggregate limit of liability as well as a $10 million per occurrence limit.”  But, three months after the policy was issued, Georgia Pacific cancelled it and went with a new policy from a different company.  Flash forward to the present where, suddenly, a material which people thought was wonderful, asbestos, is causing all sorts of mischief.  Georgia-Pacific presented OneBeacon Insurance Company, the successor to Employers, with $10 million of asbestos product-liability losses allegedly covered by the Employers policy.  In court Onebeacon argued that since the policy was only in effect for 3 months, its liability should be limited to 2.5 million.  The District Court found that agreement didn’t contemplate proration of the annual limit.  The First looks at the language and agrees.