This article focuses on a specific aspect of liability insurance that arise
s out of the latent nature of certain insured events. In particular, it is
concerned with the fact that in the interval between the original tort and
the claim for damages the standard of care applied by the courts may change
. This is the problem of retroactive liability. The article begins by brief
ly reviewing the legal background to the retrospective application of liabi
lity rules. Then it formally addresses the question of how retroactive liab
ility can be reconciled with the goals of tort law and whether retroactive
liability is insurable. (C) 2000 by Elsevier Science Inc.