Choice Of Law In Marine Insurance -- What’s SCOTUS Going To Do?

Choice of law clauses are a valuable tool for parties to preemptively decide which jurisdiction’s laws should apply to the enforcement and interpretation of insurance policies.

Typically, these contracts stipulate that the substantive laws of a specified jurisdiction should apply, regardless of where a dispute arises or is filed.

This allows for parties insuring across multiple jurisdictions to establish uniformity and predictability to their policies. More importantly, it allows the insurer to select the laws most favorable to their interests.

But can a marine insurer select the law of a state that has only tenuous (or even no) connections to the insured, insurer, and vessel insurer? The issue is now before the Supreme Court.