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  5. 955 F.2d 1353 (1992)
 

NORTHERN INS. CO. OF NEW YORK v. ALLIED MUT. INS.

Nos. 90-35579, 90-35631.

955 F.2d 1353 (1992)

NORTHERN INSURANCE COMPANY OF NEW YORK, Plaintiff-Appellee-Cross-Appellant, v. ALLIED MUTUAL INSURANCE COMPANY, Defendant-Appellant-Cross-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided February 7, 1992.

Attorney(s) appearing for the Case

A. Richard Dykstra, Stafford Frey Cooper & Stewart, Seattle, Wash., for plaintiff-appellee-cross-appellant.

I. Franklin Hunsaker, Bullivant, Houser, Bailey, Pendergrass & Hoffman, Portland, Or., for defendant-appellant-cross-appellee.

Before WRIGHT, NORRIS and HALL, Circuit Judges.

EUGENE A. WRIGHT, Circuit Judge:

This is a dispute between two insurance companies over which one must pay the defense costs of a long since dismissed product liability suit. The two insurers present several issues:

1. When liability is transferred by operation of law under a theory of product-line successor liability, do policy benefits arising from insurance on the underlying risk transfer as well? If so, do these benefits include the right to a defense...

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