Full opinion text
OPINION BERNIKOW, United States Magistrate Judge: This case, like many others across the country, involves a dispute between an insured and insurers concerning coverage for underlying asbestos personal injury and property damages cases. The parties’ motions for partial summary judgment are now before the court. BACKGROUND Maryland Casualty Company (“Maryland”) initially brought this declaratory judgment action, based on diversity of citizenship, against W.R. Grace & Co. (“Grace”) and CNA, concerning its obligations to defend and indemnify Grace under Maryland’s comprehensive general liability (“CGL”) insurance policies issued to Grace between 1955 and June 30, 1973, in regard to asbestos-related bodily injury and property damage lawsuits. These underlying lawsuits are “part of the national ‘asbestos scene, an unparalleled situation in American tort law, m which many thousands of personal injury claims have been filed ‘against asbestos manufacturers and producers.’ ” Racich v. The Celotex Corp., 887 F.2d 393, 394 (2d Cir.1989) (quoting In re School Asbestos Litigation, 789 F.2d 996, 1000 (3d Cir.), cert. denied, 479 U.S. 852, 107 S.Ct. 182, 93 L.Ed.2d 117 (1986)). As of November 3, 1987, over 6,400 asbestos-related lawsuits have been filed against Grace for bodily injury arising out of exposure to asbestos or asbestos-containing products manufactured or sold by Grace or its predecessors. Posner November 13, 1987 affidavit at 1119. Grace has also been sued in 134 cases that seek damages for property damage resulting from asbestos-containing products that were installed in various buildings throughout the country from the mid-1940’s until the 1970’s. Posner June 1, 1987 affidavit at ¶ 14. In its answer, filed on January 27, 1984, Grace asserted various counterclaims in-eluding those seeking a declaratory judgment regarding Maryland’s duty to defend and indemnify. On April 30, 1984, Grace started an action against the Royal Indemnity Company (“Royal”) in the District of Columbia Superior Court for the same declaratory relief it sought against Maryland. Grace later amended its District of Columbia complaint to add Aetna Casualty and Surety Co. (“Aetna”) and the General Insurance Company of America (“General”) as defendants. On June 21, 1984, Maryland successfully moved in this court to join Royal, Aetna and General as additional defendants. Grace, a Connecticut corporation, with its principal place of business in New York, is primarily engaged in the chemical business on a worldwide basis and in energy-related natural resource activities. Posner 5-29-87 affidavit at 113. Maryland, a Maryland corporation, has its principal place of business in Baltimore, Maryland. CNA, an Illinois corporation, has its principal place of business in Chicago, Illinois. Royal is a Delaware corporation, with its principal place of business in Charlotte, North Carolina. Aetna, a Connecticut corporation, has its principal place of business in Hartford, Connecticut. General is incorporated in the State of Washington and has its principal place of business in Seattle, Washington. Maryland, CNA, Royal, Aet-na and General are engaged in the business of providing and underwriting insurance, including the extension of liability insurance coverage. Of the five insurers, only Maryland and CNA issued policies to Grace itself. The other carriers allegedly issued policies to companies subsequently acquired by Grace. Grace, in its own name, purchased policies from Maryland from 1955 to 1973, though Maryland denies that it provided continuous coverage for that period. Maryland notes that Grace has produced no primary policies in effect during the early years of the alleged period of coverage. The policies for the period from June 30, 1962 through June 30, 1970, Maryland asserts, are incomplete and, in some cases, fragmentary. Thus, Maryland has placed in issue the extent of its obligation to Grace for any asbestos-related claims arising before the periods for which any policies or policy fragments have been discovered and for the period as to which no complete policies have been discovered. Grace contends that it has located the originals of the policies, which include the missing pages, thus resolving Maryland’s argument about missing pages. Maryland also notes that its policies with Grace were negotiated in New York City between its own representatives and those of Grace. The policies, Maryland adds, were not the standard forms used in the insurance industry, but were individually tailored and negotiated “manuscript” policies, whose provisions were authored by Grace or by its brokers, and not by Maryland. Nonetheless, as Grace notes, a comparison of Maryland’s policy language with the standard comprehensive general liability (“CGL”) forms shows that the language is essentially the same. Indeed, the managing director of the broker, Marsh & McLennan, Inc., involved in the negotiation and placement of the Maryland policies sold to Grace from at least June 30, 1961, through June 30, 1973, stated in an affidavit that the policies from June 30, 1961 to June 30, 1967 were standard form CGL policies, not drafted by Grace. See Keat-ing November 16,1987 affidavit at ¶ 3. He recognized that the policies from June 30, 1967 to June 30, 1973, were “manuscript” policies, but, he added, the language contained in them was taken from the standard form CGL policy. Id. at ¶ 4. With respect to the other insurers, Grace alleges that it, or various asbestos companies that it acquired, purchased CGL policies from Royal for all or part of the period from April 1, 1950 to April 1, 1963 and from May 26, 1967 to March 26, 1968. As for General, Grace alleges that General sold CGL coverage to Vermiculite Northwest, a company acquired by Grace in 1966, from June 1, 1961 to June 1, 1967. Grace also contends that Aetna sold CGL policies to companies acquired by Grace from January 31, 1951 until January 1, 1970. Grace does not possess copies of these policies, but asserts it has secondary evidence proving the existence of this coverage. Lastly, CNA directly sold CGL coverage to Grace from 1973 to the present. In regard to the motions for partial summary judgment, Maryland requests relief in the form of a judgment declaring that: (i) Maryland Casualty has no duty to indemnify or defend Grace for periods as to which the existence and terms of Maryland Casualty-Grace policies have not been proven by clear and convincing evidence; (ii) Maryland Casualty has no duty to indemnify or defend Grace (a) under pre-1963 policies or (b) for liability involving products of any company acquired by or merged with Grace until after the date on which such company was acquired by or merged with Grace and insured under a Maryland Casualty policy; (iii) Maryland Casualty has no duty to indemnify or defend Grace for liability for asbestos-related bodily injury claims as to which injury in fact occurred outside Maryland Casualty’s policy periods; (iv) Defense costs in each asbestos-related bodily injury case against Grace must be shared by all insurers as to which responsive policies have been proven except where it can determined that the injury in fact occurred outside of the policy period or periods of an insurer or that the claimed injury could not have resulted from exposure to a product manufactured by an insured under the relevant policy or policies; (v) Maryland Casualty has no duty to indemnify or defend Grace for liability for asbestos-related claims for equitable or declaratory relief or any relief other than the award of damages; (vi) Maryland Casualty has no duty to indemnify or defend Grace for liability for claims against Grace by school districts or other building owners (“school asbestos cases”) seeking to recover the costs allegedly incurred, or to be incurred, by them in testing their buildings for the presence of asbestos insulation, and removing or encapsulating such insulation or taking other prophylactic or preventive measures with respect to such buildings and such claims do not seek compensation for property damage; (vii) Maryland Casualty has no duty to indemnify or defend Grace for liability for school asbestos cases to recover for strictly monetary injuries not constituting compensation for property damage; (viii) Maryland Casualty has no duty to indemnify or defend Grace for liability for school asbestos cases to recover for damage to Grace’s products; (ix) Maryland Casualty has no duty to indemnify or defend Grace for liability for school asbestos cases because those cases seek to recover for hazards that were discovered or manifested subsequent to any Maryland Casualty policy periods; (x) Any duty of Maryland Casualty to indemnify Grace for any asbestos-related property damage claims that may be found by the Court is limited by policy endorsements restricting liability for “continuous discharge ... of ... materials”; (xi) Maryland Casualty has no duty to indemnify Grace for liability for injuries that were not “unexpectedly,” “unintentionally,” or “accidentally” caused including, but not limited to, the City of Green-ville case; (xii) Maryland Casualty has no duty to indemnify Grace for any award of punitive damages, sanctions, fines or penalties imposed upon Grace. Maryland Casualty further requests relief in the form of a judgment ordering Aetna, Royal and General, to the extent that Grace is able to establish that those insurers afforded responsive coverage, to reimburse Maryland Casualty for past costs of defending Grace in the asbestos-related bodily injury cases against Grace and to share with Maryland Casualty and CNA in those expenses in the future, except where it can be determined that the injury in fact occurred outside the policy period or periods of any insurer or that the claimed injury could not have resulted from exposure to a product manufactured by an insured under the relevant policy or policies. Grace has moved for partial summary judgment seeking a declaration that each of the policies sold by Maryland, Royal and General is obligated to indemnify Grace for asbestos-related property damage claims if the policy was in effect during any portion of the continuous damage process, from the first installation of the asbestos products through containment or removal. Grace seeks a similar declaration from the same insurers concerning asbestos-related bodily injury claims if the policy was in effect during any portion of the continuous injury process from first inhalation of asbestos fibers through manifestation of the asbestos-related disease. Grace also seeks summary judgment requiring the carriers to pay all past, present and future defense costs. Further, Grace seeks a declaration that any triggered policy provides full and complete defense and indemnity coverage. In addition, Grace requests judgment against Maryland, Royal and General, jointly and severally, for the monies already expended by Grace to defend the asbestos-related cases, and to satisfy any judgments or settlements in those cases. Grace has not filed any claims against CNA and its motion for summary judgment is not directed against CNA. Royal seeks partial summary judgment, declaring that Grace is not entitled to any CGL coverage issued by Royal to one of Grace’s predecessor companies, the Zono-lite Company (“Zonolite”). Royal never issued any policies to Grace. Royal also moves for summary judgment declaring that its defense obligation will terminate upon the exhaustion of the limits of its pre-1966 policies. Should the court find that Royal owes Grace a defense, Royal seeks guidance concerning the proper trigger of coverage for the asbestos-bodily injury cases pending against Grace. Aetna seeks partial summary judgment declaring that Grace is not entitled to a defense under a policy issued to a predecessor company until it is shown that the claimant alleges injury or damage arising out of asbestos products distributed by that predecessor company. Aetna seeks similar relief regarding its duty to indemnify Grace. Aetna also requests a declaration that the Illinois statute limiting the time during which actions may be brought by or on behalf of dissolved corporations bars Grace from seeking coverage under policies that may have been issued to California Zonolite Company (“California Zono-lite”) and Ari-Zonolite Company (“Ari-Zo-nolite”). Aetna, like Royal and General, did not issue any policies to Grace. Grace alleges that Aetna issued policies to three predecessor companies of Grace, i.e., California Zonolite, Ari Zonolite and Western Mineral Products (“Western Mineral”). No party, however, has produced copies of any of these policies and Aetna disputes the existence of the policies. It seeks summary judgment in the event the policies are shown to exist. We have not considered those issues unique to Aetna. They will be considered when, and if, Grace establishes the existence of the policies. A number of issues, however, that concern Aetna involve the other insurers and the determination of those issues will affect Aetna. General seeks summary judgment on Grace’s cross-claim, which asserts that General is obligated to fully defend and indemnify Grace under policies issued to General’s former insured, Vermiculite-Northwest, Inc. (“Vermiculite Northwest”). Like Royal and Aetna, General seeks a declaration that it has no duty to Grace until Grace shows that the underlying claims implicate a product of Vermiculite-Northwest. The insurers, other than CNA, also ask for a declaration that, to the extent the underlying suits do not seek damages, no coverage is afforded for them under the policies at issue. In other words, coverage does not apply, according to the insurers, to suits that seek other forms of relief, such as declaratory or equitable relief. DISCUSSION Summary Judgment The general principles concerning summary judgment have become familiar. Fed.R.Civ.P. 56(c) authorizes summary judgment when there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law. The moving party bears the burden of showing the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). And all factual inferences, and ambiguities, are drawn against the moving party. Ramseur v. Chase Manhattan Bank, 865 F.2d 460, 465 (2d Cir.1989). The court’s function on a motion for summary judgment is not to try issues of fact, but to determine whether there are any genuine issues of fact for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986). Furthermore, under Rule 56(e), “[w]hen a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denials of the adverse party’s pleading, but the adverse party’s response, by affidavits or as otherwise provided in this rule, must set forth specific facts showing that there is a genuine issue for trial.” Trigger of Coverage for Bodily Injury Claims The first issue the parties raise concerns the trigger of coverage for bodily injury claims. The insurer “on the risk” at the triggering time must provide coverage. Eagle-Picher Industries v. Liberty Mutual Ins. Co., 523 F.Supp. 110, 111 (D.Mass. 1981), modified on other grounds, 682 F.2d 12 (1st Cir.1982). This issue “usually arises when several different insurers have, in sequence, insured a company whose products caused injuries at different or uncertain times.” Uniroyal, Inc. v. Home Ins. Co., 707 F.Supp. 1368, 1387 (E.D.N.Y.1988). Maryland argues that the bodily injury claims and, for that matter, the property damage claims, fall outside its policy periods and, thus, its policies are not triggered. Citing Keene Corp. v. Ins. Co. of North America, 667 F.2d 1034 (D.C.Cir.1981), cert. denied, 455 U.S. 1007, 102 S.Ct. 1644, 71 L.Ed.2d 875 (1982) (“Keene”), Grace argues that all policies on the risk during the continuous bodily injury process, from first exposure to asbestos through manifestation of the asbestos-related disease, must pay in full Grace’s legal liability for all asbestos-related bodily injury claims and lawsuits against Grace. In Keene, the court rejected the manifestation theory, which requires manifestation of injury during the policy period, as the only trigger of coverage in delayed manifestation cases. Id. at 1046. Inhalation exposure (exposure to asbestos dust) and exposure in residence (the subsequent development of the disease) also trigger coverage, the Keene court found. Id. The Keene court concluded that once triggered, each policy on the risk covered the insured’s liability. Id. at 1048. In American Home Products Corp. v. Liberty Mutual Ins. Co., 565 F.Supp. 1485 (S.D.N.Y.1983), affd as modified, 748 F.2d 760 (2d Cir.1984) (“AHP’), however, Judge Sofaer, applying New York law, rejected the conclusions reached in Keene. Instead, Judge Sofaer determined that actual injury triggers coverage. Id. at 1489. Grace argues that AHP does not apply here because that case involved six different pharmaceutical products, not asbestos. See AHP, supra, 565 F.Supp. at 1490 n. 1. If any doubt existed as to AHP’s applicability to asbestos in New York, Abex Corp. v. Maryland Casualty Co., 790 F.2d 119, 124-25 (D.C.Cir.1986), put it to rest. The same court that decided Keene, after examining the applicable New York case law applied AHP to asbestos. Id. at 125. The court also noted that Keene did not purport to apply New York law. Id. at 124. Not only that, the Abex court’s own reading of the policy language, which it termed unambiguous, agreed with the result in AHP. Still, Grace contends that Abex should have relied on New York state cases, and not on AHP. Grace makes much of National Casualty Ins. Co. v. City of Mount Vernon, 128 A.D.2d 332, 515 N.Y.S.2d 267 (2d Dep’t 1987), decided after Abex. Mount Vernon, Grace says, applied a continuous trigger, citing Keene. In Mount Vernon, a dispute about coverage, the underlying action concerned a suit against the city for false arrest and false imprisonment. The insurance company in that case denied coverage to the city because the arrest at issue occurred about a year and a half before the policy’s effective date of January 1, 1983. The court found, however, that the insurance company had a duty to defend and indemnify the city for the damages sustained by the claimant in the underlying suit as a result of his incarceration on and after January 1, 1983 until his release, some seven days later. 515 N.Y.S.2d at 271. This finding by the Appellate Division modified the lower court’s ruling that required the insurance company to defend and indemnify without regard to the policy date. What is more, the Appellate Division said: “the operative event triggering exposure, and thus resulting in coverage under the policy, is the sustaining of a specified injury during the policy period.” Id. at 270. The principal dispute in Mount Vernon concerned the meaning of the term “occurrence.” The Appellate Division rejected the insurance company’s position that the term refers to the precipitating event — the arrest — that gave rise to the injury. 515 N.Y.S.2d at 270. The Mount Vernon policy language, like the language here, said that occurrence means an event that results in personal injury sustained during the policy period. Id. Therefore, the court was not concerned with whether the causative event happened before or during the policy period. Id. The policy did not require that the injury resulting from that event occur at one fixed time. Id. Nor did the policy distinguish between injuries that are continuous and the more common type of injuries that are not. Id. See also Keene, 667 F.2d at 1049. The Appellate Division cited Keene — with a “cf.” — for the proposition that the failure to distinguish between continuous and non-continuous injury has particular significance because of express policy language that injury can be caused by “ ‘continuous or repeated exposure to conditions.’ ” Mount Vernon, 515 N.Y.S.2d at 270 (quoting policy); see also Keene, 667 F.2d at 1049 n. 31. Thus, we do not read Mount Vernon’s reference to Keene as an adoption of its continuous trigger theory. Moreover, Mount Vernon, as noted, held that a specified injury during the policy period triggers coverage, see W.R. Grace & Co. v. Continental Casualty Co., (“W.R. Grace & Co.”), 896 F.2d 865, 876 (5th Cir.), reh’g. denied, (5th Cir.1990) — a result consistent with AHP’s injury-in-fact trigger. Grace also argues that other New York State cases support a continuous trigger theory. Nevertheless, Abex considered most of the cases Grace cites and found that, though these cases did not offer a “unambiguous embrace” of the injury-in-fact theory, they were far more consistent with that theory than with the continuous trigger. Abex, 790 F.2d at 126. Similarly, the court in Aetna Casualty & Surety Co. v. Abbott Laboratories, Inc., (“Abbott”) 636 F.Supp. 546, 550 (D.Conn.1986), a case involving the drug DES and some policies covered by New York law, applied AHP’s injury-in-fact trigger. More recently, Judge Weinstein observed that the federal courts applying New York law adopt the injury-in-fact theory under a comprehensive general liability policy. Uniroyal, Inc. v. Home Ins. Co., 707 F.Supp. 1368, 1387-88 (E.D.N.Y.1988). And even more recently, the Fifth Circuit noted that New York follows the injury-in-fact theory. W.R. Grace & Co., 896 F.2d at 875-76. Accordingly, we find that injury-in-fact triggers coverage in New York. Grace argues, however, that extrinsic evidence is necessary to interpret the policy language at issue. The disparate constructions placed by courts on the same policy language, according to Grace, shows ambiguity as a matter of law. Grace further notes that it did not draft the disputed language. Following Abex and AHP, however, we find the policy language is unambiguous. Grace maintains that AHP did not involve asbestos. Nevertheless, Abex involved asbestos and the court there said: The plain language of the definition of “occurrence” used in the CGL policy requires exposure that “results, during the policy period, in bodily injury” in order for an insurer to be obligated to indemnify the insured. The unambiguous meaning of these words is that an injury — and not mere exposure — must result during the policy period. 790 F.2d at 127 (emphasis in original); see also AHP, 748 F.2d at 765. Thus, extrinsic evidence need not be considered. On the question of when injury in fact occurs, Grace argues that the asbestos-related bodily injuries in the underlying cases are inherently continuous, and, thus, even under AHP, each carrier on the risk at any time between first exposure and manifestation has the duty to indemnify. Maryland, for its part, urges that we follow Judge Sofaer’s approach of establishing the timing of injury in fact on a case-by-case basis in the underlying actions. See AHP, 565 F.Supp. at 1509. We agree with Maryland. Though Grace argues that the etiology of asbestos-induced diseases is well known, the issue, according to the Abex court, has split the circuits. Abex, 790 F.2d at 127 n. 36. Abex contrasted Insurance Co. of N.Am v. Forty-Eight Insulations, Inc., 633 F.2d 1212, 1218 (6th Cir.1980), clarified, 657 F.2d 814, (6th Cir.1981) cert. denied, 454 U.S. 1109, 102 S.Ct. 686, 70 L.Ed.2d 650 (1981), which observed that injury, in the sense of tissue damage, occurs shortly after the initial inhalation of asbestos fibers, with the view of Eagle-Picher Indus., Inc. v. Liberty Mut. Ins. Co., 682 F.2d 12, 19 (1st Cir.1982), cert. denied, 460 U.S. 1028, 103 S.Ct. 1279, 75 L.Ed.2d 500 (1983), that even sub-clinical injury to the lung does not occur simultaneously with the inhalation of asbestos. Id. In AHP, Judge Sofaer also recognized the difficulty in determining the onset date of asbestos injury. Commenting about the usefulness of collateral estoppel on medical issues to prove when injury occurred, Judge Sofaer excluded asbestos from the operation of that doctrine. See 565 F.Supp. at 1509. He said: “Unlike the variable manner in which injuries are caused by asbestos fibres, other products may produce specific consequences at particular times.” Id. Accordingly, summary judgment is inappropriate on this issue, the resolution of which is better left to the underlying cases. See AHP, 565 F.Supp. at 1509; Abbott, Civil No. H-82-843 (JAC) slip op. at 2 (D.Conn. September 11, 1987); Abbott, 636 F.Supp. at 551. In those cases the courts will likely address related factual issues concerning the injuries at issue. Abbott, slip op. at 2. With regard to those cases that have settled, the court hearing the coverage dispute — this court — should determine the date of the injury in fact. Abbott, 636 F.Supp. at 551-52. In Abbott, the court directed the parties confer to develop a procedure for resolution of the settled cases. Id. at 551. The present parties should do the same. The fact of settlement, though, does not create coverage. In other words, an insurer has no duty to indemnify a settled claim excluded by the policy. Uniroyal, 707 F.Supp. at 1379. The duty to indemnify requires a covered loss under the policy. Servidone Construction Corp. v. Security Insurance Co., 64 N.Y.2d 419, 423, 488 N.Y.S.2d 139, 143, 477 N.E.2d 441, 445 (1985); see W.R. Grace & Co., 896 F.2d at 874 (citing Servidone ); Uniroyal, 707 F.Supp. at 1379 (citing Servidone). In determining whether a settled claim involves a covered loss — from the actual facts, not the pleadings — the burden rests with the insurer to show that the claim was not within the policy coverage. Servidone, 488 N.Y.S.2d at 143, 477 N.E.2d 445; Burroughs Wellcome Co. v. Commercial Union Ins. Co., 713 F.Supp. 694, 699 (S.D.N.Y.1989). An argument can be made that placing the burden on the insurer only applies to cases, like Servi-done, involving a policy exclusion. 488 N.Y.S.2d at 143, 477 N.E.2d at 445. But the first paragraph of the Servidone opinion, which summarizes the court’s holding, imposes no such limitation. 488 N.Y.S.2d at 140, 477 N.E.2d at 442. Burroughs Wellcome, too, did not limit its finding. 713 F.Supp. at 699; see also Uniroyal (Ser-vidone “never held that an otherwise covered claim, once settled, must be proven anew by the insured.”) 707 F.Supp. at 1379. On the duty to defend, the insured’s burden is not great. Grace is entitled to a defense if the complaints in the underlying actions “ ‘permit proof’ of the facts establishing coverage, or if the complaints do not exclude the possibility that injury-in-fact occurred during the policy period. Only if the insurers establish, ‘as a matter of law, that there is no possible factual or legal basis on which the insurer might eventually be obligated to indemnify,’ would they escape their duty defend [Grace].” Abex, 790 F.2d at 129 (footnotes omitted) (emphasis in original); see also Avondale Indus. Inc. v. Travelers Indemn. Co., 887 F.2d 1200, 1205 (2d Cir. 1989), reh’g denied, 894 F.2d 498 (2d Cir.) (per curiam), cert. denied, 496 U.S. 906, 110 S.Ct. 2588, 110 L.Ed.2d 269 (1990). Thus, the insurers must satisfy their obligation to defend Grace. Id. “This obligation will continue until the insurers establish that, as a matter of law, there is no possibility that they will have to indemnify [Grace].” Id. For those policies, then, that Grace has proven, or will prove, Maryland must provide a defense, see Abex Corp. v. Maryland Casualty Co., No 82-2098, slip op. at 2 (D.D.C. April 6, 1990), provided those policies have been triggered applying the injury in fact trigger. As for allocating defense costs among the insurers, which Maryland urges, those costs should be apportioned equally. Federal Insurance Co. v. Cablevision Systems Development Co., 836 F.2d 54, 57 (2d Cir.1987); Abex Corp. v. Maryland Casualty Co., No. 82-2098, slip op. at 3 (D.D.C. April 5, 1990). Nonetheless, summary judgment appears premature because the existence of coverage concerning all the insurers remains an open issue. See Proof of Existence of Terms of Polices, infra. Coverage for Knowing Misconduct Maryland seeks summary judgment declaring that it has no duty to indemnify Grace for injuries that were not unintentionally caused. Grace, on the other hand, seeks a declaration that any triggered policy provides full and complete defense and indemnity coverage, and that no portion of this liability can be allocated to Grace. Maryland contends that Grace has no coverage for losses due to Grace’s knowing misconduct. Thus, Maryland maintains that it has no duty to indemnify Grace for expected injuries. Most liability insurance policies provide coverage only for bodily injury or property damage that the insured neither expects nor intends, Maryland says. In regard to the Maryland policies, this exclusion, set forth in special, hand-crafted endorsements, provides in more categorical terms, Maryland argues, that coverage is afforded only for injuries “unexpectedly,’’ “unintentionally” or “accidentally” caused. In particular, Maryland seeks summary judgment that it has no duty to indemnify for any liability imposed upon Grace in City of Greenville v. W.R. Grace & Co., No. 85-1693-14 (D.S.C., complaint filed June 21, 1985). After a jury trial in that case, the court awarded $6.4 million in compensatory damages and $2 million in punitive damages against Grace. In Green-ville, the court in an amended order, commented that Grace knew of the hazard of asbestos in buildings when it sold its asbestos products to the city. City of Greenville v. W.R. Grace & Co., 640 F.Supp. 559, 566 (D.S.C.1986), aff'd, 827 F.2d 975 (4th Cir.1987), reh’g denied, 840 F.2d 219 (4th Cir.1988). Grace argues that the pre-1967 policies contains no requirement that the property damage be accidental, unexpected or unintentional. Grace refers to that portion of the endorsement that defines “occurrence” to mean either an accident in or a continuous or repeated exposure to conditions which result during the policy period in injury to or destruction of— (A) Property including the loss of use thereof which is accidently (sic) caused and (B) Tangible or physical property, including the loss of use thereof. Exh. B, tab 5 to Maryland’s Memorandum of Law in Support of Motion. Grace points out that sub-part B contains no “accidental” qualification for any claim involving “tangible or physical property” and that a building damaged by its product is tangible or physical property. Maryland disputes that the underlying claims concern “injury to or destruction of ... tangible or physical property.” These claims, if coverage exists at all, says Maryland, would fall under sub-part A, which requires an accidentally caused loss of use. Grace notes, though, that the very endorsements provide for the deletion from the insuring agreement of the words “caused by accident.” In any event, the endorsement also provides that “such insurance as is afforded by this endorsement does not apply to property damage caused intentionally by or at the direction of the insured.” Id. at tab 5 (emphasis added). Thus, these policies do not provide coverage for intentional property damage. Turning to the 1967 to 1973 policies, Grace acknowledges that they provide coverage when an occurrence “unintentionally causes injury to or destruction of property.”. Id. at tab 6. Nevertheless, Grace points to the “liberalization” clause in these policies, which provides that when the provisions of the later policies vary from the earlier policies, the insured has the option to have the earlier terms and conditions apply. Since the prior policies contain language providing coverage for unintentional property damage, the liberalization clause has no effect on this issue. Thus, the ’67 to ’73 policies, like the earlier ones, do not provide coverage for intentional property damage. Thus, Maryland is entitled to summary judgment declaring that it has no duty to indemnify Grace for liability for injuries that were not unintentionally caused. Even if the policies provide no coverage for intentional injury, Grace argues that Maryland ignores the distinction made by the courts between an intentional act and an intentional injury. See City of Johnstown, N.Y. v. Bankers Standard Ins. Co., 877 F.2d 1146, 1152 (2d Cir.1989). Maryland argues that even under City of Johnstown, losses arising from asbestos-related claims against Grace fall outside the coverage because they were not accidental, unexpected or unintended. The relevant issue, as Grace argues, is not whether the policyholder willfully committed the act, but whether the policyholder intended the resulting damage. Id. In other words: It is not enough that an insured was warned that damages might ensue from its actions, or that, once warned, an insured decided to take a calculated risk and proceed as before. Recovery will be barred only if the insured intended the damages, or if it can be said that the damages were, in a broader sense, “intended” by the insured because the insured knew that the damages would flow directly and immediately from its intentional act. Id. at 1150 (citations omitted). Maryland has submitted evidence indicating that Grace knew of the dangers of asbestos as early as 1956. See Kerst declaration and documents filed thereunder under seal. For example, Maryland has submitted evidence that Grace was aware of the hazards of asbestos-containing products, and had developed an asbestos-free insulation product, yet continued to sell asbestos-containing Monokote until such sale was prohibited by EPA regulation in 1973. See letter from Maryland’s counsel, Aug. 8, 1988 and exhibits filed under seal. Maryland has submitted a considerable amount of evidence on this issue. Grace disputes the existence of evidence showing that Grace believed, or that it was generally accepted, that asbestos products, once installed, caused property damage. Maryland, by its evidence, hopes to show that Grace intended the consequences of its actions. This evidence raises factual issues that bar summary judgment for Grace's claim that it is entitled to full and complete defense and indemnification on the triggered policies. In regard to Greenville, though, the court did not consider whether Grace intended to cause the damage alleged in that case. Indeed, in Dayton Independent School District v. National Gypsum Co., 682 F.Supp. 1403, 1408 n. 14 (E.D.Tex.1988), reversed on other grounds, sub. nom, W.R. Grace & Co., supra, the court found that the Greenville decision only addressed whether the jury could have properly found that Grace's negligence warranted punitive damages, not whether Grace intended to cause property damage when it sold asbestos-containing materials. Thus, the Greenville jury did not find that Grace intended to cause property damage, the court added. Id. We agree with the Dayton court’s reading of Greenville, particularly in view of City of Johnstown. Maryland argues that a distinction should be drawn between policies, like the present ones, that require injury or damage be “unexpectedly cause[d]” and the “expected or intended” language of other policies, which is more inclusive. See Borg-Warner Corp. v. Liberty Mutual Ins. Co., No. 88-539 (Sup.N.Y., Tompkins Co. Jan. 24, 1991), slip op. at 34. Even though the policies in City of Johnstown contained the “expected or intended” language, the ruling there suggests that it would encompass the Maryland policy language. As the Second Circuit said: [T]o exclude all losses or damages which might in some way have been expected by the insured, could expand the field of the exclusion until virtually no recovery could be had on insurance. This is so since it is mishaps that are ‘expected’— taken in its broadest sense — that are insured against. 877 F.2d at 1150 (emphasis in original). Thus, Maryland’s motion for summary judgment is denied concerning Greenville. Punitive Damages Maryland argues that it has no obligation to indemnify Grace for any judgments awarding punitive damages against Grace or for any sanctions, fines or penalties imposed against Grace. Citing Public Serv. Mut. Ins. Co. v. Goldfarb, 53 N.Y.2d 392, 442 N.Y.S.2d 422, 425 N.E.2d 810 (1981), and Hartford Accident & Indem. Co. v. Village of Hempstead, 48 N.Y.2d 218, 422 N.Y.S.2d 47, 397 N.E.2d 737 (1979), Maryland notes that New York courts have long held that under no circumstance may an insurer indemnify an insured for punitive damages. These holdings are based on public policy reasons. Village of Hempstead, 422 N.Y.S.2d at 51-52, 397 N.E.2d at 741-42. Public policy aside, Maryland argues that its policy language limits coverage to bodily injury or property damages and punitive damages do not fall within either category. In response, Grace contends that New York law does not control the issue of coverage for punitive damages. In the absence of any choice of law provision in the policies or other countervailing considerations, Grace says, the question of insurability is usually decided by reference to the law of the state that imposed the punitive damages — in regard to the state that imposed the punitive damages — in regard to the Greenville case, South Carolina. In South Carolina, Grace submits, Maryland’s policies cover the punitive damage award in Greenville. Carroway v. Johnson, 245 S.C. 200, 139 S.E.2d 908, 910 (1965). But even in New York, Grace adds, coverage depends on the precise nature of the punitive damage award. Grace submits that an award based on non-intentional or vicarious liability would be covered in New York. See Village of Hempstead, supra, 422 N.Y.S.2d at 50, 397 N.E.2d at 740. The New York Court of Appeals has now resolved the issue. In Home Ins. Co. v. American Home Products Corp., 75 N.Y.2d 196, 551 N.Y.S.2d 481, 484, 550 N.E.2d 930, 933 (1990), that court applied its earlier holdings in Goldfarb and Hartford to out-of-state judgments. Thus, in New York, public policy prevents an insurer from reimbursing an insured for punitive damages awarded against the insured in an out-of-state judgment. The Court of Appeals also indicated that an award of punitive damages is not limited to intentional conduct but may involve wilful or wanton negligence or recklessness. 551 N.Y.S.2d at 485, 550 N.E.2d at 934. Grace argues, however, that because of the similarity in the law of Illinois, the state of the underlying judgment, and New York, in Home Insurance, it was appropriate to apply New York policy to the Illinois judgment. Under Illinois law, punitive damages “may only be awarded upon a showing that a tort has been ‘committed with fraud, actual malice, deliberate violence or oppression, or when the defendant acts willfully, or with such gross negligence as to indicate a wanton disregard of the rights of others * * Home Insurance Co., 551 N.Y.S.2d at 485, 550 N.E.2d at 934 (citations omitted). In South Carolina, the state of the Greenville judgment, on the other hand, says Grace, mere gross negligence justifies an award of punitive damages. Kennedy v. Columbia Lumber & Mfg. Co., Inc., 299 S.C. 335, 384 S.E.2d 730, 737 (1989). Because punitive damages may be awarded in South Carolina for conduct less egregious than what would support a punitive award in New York, Grace contends, the reasoning of Home Insurance Co. does not apply to the award in Greenville. Nevertheless, the Fourth Circuit in Greenville stated that under South Carolina law, “punitive damages may be recovered when a tortfeasor acts willfully, wantonly, or in reckless disregard of the rights of another.” City of Greenville, 827 F.2d at 983. This language differs very little, if at all, from the language quoted above in Home Insurance Co. relating to Illinois law on punitive damages. But even if South Carolina has a less stringent test for an award of such damages, the conduct the jury found Grace guilty of fits within the confines of the “more stringent” Illinois law. See id. at 982. In short, the conduct of Grace, as found in City of Green-ville, would support an award of punitive damages in New York. Home Insurance Co., 551 N.Y.S.2d at 486, 550 N.E.2d at 935. Accordingly, we find that New York public policy prevents Maryland from reimbursing Grace for its actions in Greenville. Maryland’s motion for summary judgment on this issue is granted. The parties have not submitted any other evidence of awards of punitive damages against Grace, so summary judgment for such awards is premature. Duty to Defend Upon Exhaustion of Limits Royal seeks a declaration that any defense obligation it may owe to Grace under its pre-1966 policies will terminate upon the exhaustion of those policies’ limits. Maryland joins in Royal’s request. The defense provisions of the pre-1966 Royal policies sold to Zonolite, Grace’s predecessor, provide: As respects the insurance afforded by other terms of this policy the Company[Royal] shall: (a) defend any suit against the Insured alleging such injury, sickness, disease or destruction and seeking damages on account thereof, even if such suit is groundless, false or fraudulent; * # # * * * The amounts incurred under the insuring agreement, except settlements of claims and suits, are payable by the Company in addition to the applicable limit of liability of this policy. Titus 8-21-87 Aff. Exh. 1-3 (Insuring Agreements, II Defense, Settlement, Supplementary Payments). Royal cites Commercial Union Ins. Co. v. Pittsburgh Corning Corp., 789 F.2d 214 (3d Cir.1986); Keene Corp. v. Ins. Co. of N. Am., 597 F.Supp. 946 (D.D.C.1984), vacated as a result of settlement, 631 F.Supp. 34 (D.D.C.1985); and Zurich Ins. Co. v. Northbrook Excess & Surplus Ins. Co., 145 Ill.App.3d 175, 98 Ill.Dec. 512, 494 N.E.2d 634 (1986), to support its position. Grace counters that since these cases apply Pennsylvania and Illinois law, not New York law, the court should disregard them. The only New York case that addresses the issue, American Employers Ins. Co. v. Goble Aircraft Specialties, Inc., 205 Misc. 1066, 131 N.Y.S.2d 393, 400 (Sup.Ct., N.Y.Co.1954), appeal withdrawn, 1 A.D.2d 1008, 154 N.Y.S.2d 835 (1st Dep’t 1956), holds that the duty to defend survives the exhaustion of the policy limits. The court there found the language in the policy, “defend any suit against the insured,” which also appears in our policies, unambiguous. Id. Though Royal argues that Goble represents an outdated and minority view, it appears to represent the law in New York. It was cited in Blasch v. Chrysler Motors Corp., 114 Misc.2d 223, 450 N.Y.S.2d 1012, 1016 (Sup.Ct. Albany Co.1982), rev’d on other grounds, 93 A.D.2d 934, 462 N.Y.S.2d 313 (3d Dep’t 1983), for the proposition that the policy language must be examined to determine if the duty to defend terminates with the insurer’s payment of the policy limits. Furthermore, the district court in Federal Ins. Co. v. Cablevision Systems Dev. Co., 662 F.Supp. 1537, 1539-40 (E.D.N.Y.), aff'd, 836 F.2d 54 (2d Cir.1987), cited Goble Aircraft, and Blasch too, to show that the duty to defend is essentially limitless. Consequently, we find under New York law that the duty to defend survives the exhaustion of the policy limits and, hence, deny summary judgment to Royal on this issue. Limitation of Coverage to Sums Payable as Damages and Limitation of Coverage to Claims for Property Damage The insurers seek a declaration, with respect to the underlying asbestos-related building cases, that to the extent these suits do not seek damages, no coverage— defense or indemnification — is afforded under their policies. Typically, the policies provide for the defense of suits seeking damages and for indemnification of “sums which the Insured shall become legally obligated to pay as damages because of injufy to or destruction of property, including the loss of use thereof.” See supra, n. 3 (emphasis added). The insurers contend that the policies do not provide coverage for suits. seeking relief other than damages, such as declaratory or equitable relief. The term “daniages”, say the insurers, explicitly qualifies both the duty to defend and the duty to indemnify. Many suits, for example, seek injunctions requiring Grace to test for and remove asbestos-containing materials in school or other buildings. Others seek equitable restitution of costs claimants have incurred to test for and remove asbestos-containing material. And still others seek a declaration that Grace must indemnify the claimants for costs they incur in responding to potential future claims by persons who may be exposed to asbestos-containing materials present in the claimants’ buildings. Needless to say, Grace resists the entry of the requested declaratory judgment. It argues that all the complaints in the underlying case seek damages on account of property damage. But more than that, Grace maintains that damages means money the insured is legally obligated to pay for the results of property damage. Another related issue concerns the limitation of coverage to claims for property damage. Maryland seeks a declaration that it has no duty to defend or indemnify for school cases that seek recovery for strictly monetary injuries, rather than property damage. This category includes the expense of testing for potential health problems and upgrading school facilities to preclude future health hazards. These expenses are not incurred, Maryland maintains, because of “property damage.” Grace points out that the underlying complaints allege property damage due to the presence of asbestos-containing materials. Grace also notes that Maryland paid for inspections costs, replacement costs, etc. in the Bituthen and WRDA (construction chemical additive called “WRDA-99”, had to do with installation of sub-par WRDA id at 16) claims. It points out, too, that Aetna paid claims for removal and replacement of formaldehyde foam insulation in homes. Id. at 21 Courts have reached different results on the term “as damages.” The conflict focuses on whether the term is interpreted according to the legal or equitable nature of the liability or to the meaning of the term to the ordinary person. American Motorist Ins. Co. v. Levelor Lorentzen, Inc., No. 88-1994, 1988 WL 112142 at *2 (D.N.J.1988), appeal dismissed, 879 F.2d 1165 (3d Cir.1989). The Second Circuit has concluded that New York would afford the term “damages” its ordinary meaning and, hence, remedial costs for the cleanup of a waste site constitute damages. Avondale Indus., Inc. v. Travelers Indem. Co., 887 F.2d 1200, 1207 (2d Cir.1989), reh’g. denied, 894 F.2d 498 (2d Cir.) (per curiam), cert. denied, 496 U.S. 906, 110 S.Ct. 2588, 110 L.Ed.2d 269 (1990). Avondale involved an oil recycling facility and a dump site in Louisiana. Persons residing near the dump site instituted actions for personal injury and property damage caused by pollutants from the site. Id. at 1201. In addition, the plaintiff there received a letter from the Louisiana State Attorney General’s office, issued at the request of the Louisiana State Department of Environmental Quality (DEQ), indicating that DEQ intended to clean up the waste site at the recycling facility and recover all remedial costs for the cleanup. Id. at 1202. The court imposed on the insurer the duty to defend the DEQ proceeding and the private actions, too. On the damage issue the court said: In New York, the terms of an insurance policy have long been accorded “a natural and reasonable meaning,” Doyle v. Allstate Ins. Co., 1 N.Y.2d 439, 443, 154 N.Y.S.2d 10, 136 N.E.2d 484 (1956), corresponding to “the reasonable expectation and purpose of the ordinary businessman.” Ace Wire & Cable Co. v. Aetna Casualty & Sur. Co., 60 N.Y.2d 390, 398, 469 N.Y.S.2d 655, 457 N.E.2d 761 (1983); see Bird v. St. Paul Fire & Marine Ins. Co., 224 N.Y. 47, 51, 120 N.E. 86 (1918). If there is uncertainty concerning its meaning, a policy is construed to embrace coverage. Insurance Co. of No. Am. v. Dayton Tool & Die Works Inc., v. Liberty Mut. Ins. Co., 57 N.Y.2d 489, 457 N.Y.S.2d 209, 443 N.E.2d 457 (1982); Thomas J. Lipton, Inc. v. Liberty Mut. Ins. Co., 34 N.Y.2d 356, 361, 357 N.Y.S.2d 705, 314 N.E.2d 37 (1974); accord National Grange [Mut. Ins. Co. v. Continental Casualty Ins. Co.], 650 F.Supp. [1404] at 1408 [ (S.D.N.Y.1986) ]. When an insurer that drafts the instrument wants to exclude from coverage policy obligations it would otherwise assume, it must do so in clear and unmistakable language. See Seaboard [Sur. Co. v. Gillette Co.], 64 N.Y.2d [304] at 311 [486 N.Y.S.2d 873, 476 N.E.2d 272] [(1984)]. Id. at 1206-07. It noted the policy there did not include any definition of the term “damages”. Id. at 1207. A number of other cases, the court added, have held that cleanup costs are damages under the same kind of policy. Id. Although Avondale concerns cleanup costs of toxic waste materials, the two cases the insurers principally rely on, Continental Ins. Cos. v. Northeastern Pharmaceutical & Chemical Co. Inc., 842 F.2d 977 (8th Cir) (en banc), cert. denied, 488 U.S. 821, 109 S.Ct. 66, 102 L.Ed.2d 43 (1988) (NEPACCO), and Maryland Cos. Co. v. Armco, Inc., 822 F.2d 1348 (4th Cir.1987), cert. denied, 484 U.S. 1008, 108 S.Ct. 703, 98 L.Ed.2d 654 (1988), like Avondale, involve environmental cleanup costs. Not only that, the insurers argue that the rule they urge — that coverage is afforded only for sums the insured is legally obligated to pay as damages — applies with equal force to asbestos building cases. See Reply Memorandum of insurers at 6. Thus, under New York law, the insurers have a duty to defend the building cases, regardless of whether they contain claims for equitable relief or, for that matter, for compliance with orders of regulatory agencies. The law of the State of Washington, which, according to General governs its policies, provides that response costs incurred under CERCLA are damages within the meaning of CGL policies. Boeing Co. v. Aetna Casualty & Sur. Co., 113 Wash.2d 869, 784 P.2d 507, 516 (1990). Response costs, as defined by CERCLA, include costs of removal of hazardous substances from the environment and the costs of other remedial work. Id. 784 P.2d at 509. Boeing also held that the “term ‘damages’ does not cover safety measures or other preventive costs taken in advance of any damage to property.” Id. 784 P.2d at 516. Under California law, which, Aetna says, governs its policies issued to California Zo-nolite, CERCLA cleanup costs are considered damages. AIU Ins. Co. v. Superi- or Court (FMC Corp.), 51 Cal.3d 807, 274 Cal.Rptr. 820, 842, 799 P.2d 1253, 1275 (1990); Intel Corp. v. Hartford Accident & Indem. Co., 692 F.Supp. 1171, 1186-87 (N.D.Cal.1988); Aerojet-General Corp. v. San Mateo Cy. Superior Court, 211 Cal. App.3d 216, 257 Cal.Rptr. 621, 631, reh’g. denied, 211 Cal.App.3d 216, 258 Cal.Rptr. 684 (1989). The Supreme Court of Minnesota has also spoken on this issue. Minnesota law, according to Aetna, applies to the policies issued to Western Mineral. Responding to a certified question from the Federal district court there, the Minnesota Supreme Court found that the costs of complying with directives issued by state and federal environmental agencies to clean up groundwater contamination caused by pollution is covered under CGL policies. Minnesota Mining & Manufacturing Co. v. Travelers Indemnity Co., 457 N.W.2d 175, 184 (Minn. 1990). Grace notes that the underlying claimants do not seek damage for safety measures taken in advance of injury to property. Rather, these claimants, Grace adds, seek compensatory damages as a result of property damage that, they allege, has already occurred. If that is so, in the states mentioned above — New York, Washington, California and Minnesota — it appears that Grace would be entitled to coverage. Still, a determination must await examination of the underlying claims. Suffice it to say, the insurers’ motion for summary judgment is denied. On the question of coverage for claims for property damage, it appears New York would provide coverage. In City of New York v. Keene Corp., No. 84-44559, slip op. at 7 (Sup.Ct. N.Y. Co. Nov. 19, 1985), aff'd, 129 A.D.2d 1019, 513 N.Y.S.2d 1004 (1st Dep’t 1987), the court found that the refitting of the city’s buildings, contaminated by asbestos, to make them safe to be the measure of plaintiffs’ property damage. Slip op. at 7-8. Moreover, the Second Circuit has held, under New York law, that consequential or intangible damages— in particular, lost profits—are within the terms of the 1966 revised standard CGL policy insuring for property damage. Aetna Cas. & Sur. Co. v. General Tire Corp., 704 F.2d 80, 83 (2d Cir.1983). Other jurisdictions have reached different results. Compare Mraz v. Canadian Universal Ins. Co. Ltd., 804 F.2d 1325, 1329 (4th Cir.1986) (CERCLA response costs do not constitute property damage) with AIU Ins. Co., 799 P.2d at 1279 (reimbursement of response costs and the costs of injunctive relief under CERCLA and related statutes are incurred because of property damage). Maryland initially relied on the Illinois trial court decision in United States Fidelity and Guaranty Co. v. Wilkin Insulation Co., No. 84-CH-11676 (Cir. Ct. Cook Co. Aug. 14, 1987), which held that claims arising out of the installation of asbestos-containing materials in schools and other public buildings were not claims for property damage. During the penden-cy of the instant motions, however, the Illinois Appellate Court reversed, holding that the incorporation of such materials in buildings constitutes property damage, which results in the diminution in value of the greater building structure. United States Fidelity and Guaranty Co. v. Wilkin Insulation Co., 193 Ill.App.3d 1087, 140 Ill.Dec. 907, 550 N.E.2d 1032 (First District, Fourth Division 1989), appeal filed, 140 Ill.Dec. at 912, 550 N.E.2d at 1037. The court added that diminution in value was not property damage. Id. Rather, the incorporation of the defective product constituted property damage. Id. As a result, the court held that the insurers had a duty to defend. As for a duty to indemnify, the court found a determination on that issue premature since the underlying complaints had not been adjudicated. Id. 140 Ill.Dec. at 916, 550 N.E.2d at 1041. In any event, as noted, it appears under the law of New York, and California, Grace would be entitled to coverage. Thus, for those states, the insurers’ motion for summary judgment on this issue is denied. Trigger of Coverage for Public Building and School Claims Next, the parties disagree about the trigger of coverage for property damage claims. Grace argues for a continuous trigger theory or exposure theory. Under its view, all policies in effect from installation to removal or containment provide coverage. Maryland, on the other hand, urge a manifestation trigger. Property damage, to Maryland, occurs on the date of discovery or manifestation. To trigger coverage, under this theory, the discovery of damage must occur during the policy period. Some courts have adopted the continuous trigger, see, e.g., Broderick Inv. Co. v. Hartford Accident & Indem. Co., 742 F.Supp. 571 (D.Colo.1989), relying on Dayton Independent School District v. National Gypsum, supra, 682 F.Supp. at 1410, rev’d sub. nom., W.R. Grace & Co., 896 F.2d 865, 876 (finding that New York law squarely conflicts with the continuous trigger theory applied by the district court or at least is not settled); New Castle County v. Continental Casualty Co., 725 F.Supp. 800, 813 (D.Del.), motion for reconsideration denied, 728 F.Supp. 324 (D.Del.1989); Lac D'Amiante Du Quebec Ltee. v. American Home Assur. Co., 613 F.Supp. 1549, 1561 (D.N.J.1985), vacated on other grounds, 864 F.2d 1033 (3d Cir. 1988), and others have adopted the manifestation trigger. See, e.g., Mraz v. Canadian Universal Ins. Co., Ltd., 804 F.2d 1325, 1328 (4th Cir.1986); Pittsburgh Corning Corp. v. Travelers Indem. Co., No. 84-3985, slip op. at 4, 1988 WL 5296, 1988 U.S.Dist. Lexis 634 (E.D.Pa. Jan. 28, 1988), adhered to on reconsideration, (E.D.Pa. March 15, 1988) (“While a ‘continuous trigger’ theory may be used in order to remedy physical injury or disease caused by asbestos in the past, injury to property does not occur until it is discovered and the market value of the property drops.”); United States Gypsum Co. v. Admiral Ins. Co., No. 83-L-53328 (Ill.Cir.Ct, Cook Co., Jan 7, 1991), slip op. at 6685) (“U.S. Gypsum”) (“Property damage is an economic matter for the most part. Personal injury may take place, as medical evidence will support, well before actual detection. Property damage, as a practical matter, does not take place until the damage is known or recognized.”) Maryland cites a recent case from the Eleventh Circuit that applied New York law and rejected the exposure theory. Young v. Insurance Co. of North America, 870 F.2d 610, 611 (11th Cir.1989). In that case, Young, a builder, was sued by a purchaser of one of his homes as a result of a fire caused by the faulty installation of a gas grill during construction. Young asked the insurer to defend him in the suit, pursuant to his general contractor liability policy in force at the time of construction. The insurer refused because the coverage had expired before the fire. Young argued that the term “occurrence” in the policy should be interpreted to include exposure of the property to a hazardous condition — the faulty gas grill— during the policy period. The court rejected Young’s argument, noting that the definition of property damage in the policy stated that it covers injury occurring during the policy period. Id. This case does not mean, however, that New York rejects the exposure theory on facts like ours. The Young court expressly excluded from its rationale cases involving exposure during the policy period to materials such as asbestos. In those cases, the court said, exposure to asbestos could be deemed an injury under the policy, even though the outward signs of that injury did not appear until after the policy had expired. Id. at 612. The court distinguished between asbestos cases where exposure results in injury that is not readily apparent and those cases where no injury occurs until a specific event, like the fire in Young caused by the faulty installation of the gas grill. Id. Thus, Young does not support Maryland’s position. On the other hand, in excluding asbestos from its rationale, the court relied on Keene, which, as discussed, has been undermined by Abex. See supra at 1212-1213. Thus, Young does not help Grace either. Nevertheless, though the Fifth Circuit in W.R. Grace & Co. observed that the law in New York may be unsettled on this question, it cited American Motorist Ins. Co. v. Levelor Lorentzen, Inc., No. 88-1994, 1988 WL 112142 (D.N.J.1988), appeal dismissed, 879 F.2d 1165 (3d Cir.1989), which looking to New York law held that: “In the context of damage to property caused by contamination from hazardous waste the ‘first discovery’ principle is the most appropriate standard to apply ... Slip op. at 9-10.” W.R. Grace & Co., 896 F.2d at 876. Leve-lor recognized that no clear precedent exists under New York law for either the time of injury or the first discovery standard. Levelor, supra, 1988 WL 112142 *4. But given the long periods of time involved and the difficulty of measuring the exact time that damage to property from pollution might occur, the court applied the discovery trigger because it “provides more certainty for insurance carriers in determining potential liability.” Id. The difficulty in measuring the exact time that damage to property occurs in pollution cases applies as well to asbestos. Consequently, we see no reason to depart from the reasoning in Levelor. If we had any doubt about following Levelor, we take heart from the recent rejection of some of the authority cited