Property Damage Arising Out of Defect in Product

The insured manufactured and marketed fire retardant plywood to homebuilders and roofers. The process used to increase fire resistance in the plywood breaks down where the wood is exposed to hear and moisture. Normal summer weather conditions cause the wood to sweat a low concentration of acid. The acid in turn breaks down the glue and resin binding the plywood which delaminates, causing whatever was built using the product to fail. Total losses: $74,707,000