Insurance Law News Archives

Past Rulings and Legislation

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August 2007

• No UM Benefits Due When Vehicle Owner and Operator are Covered by Personal Umbrella Policy
• Policy Issued in Texas But to Be Performed in California Must Be Interpreted Under California Law; Duty to Defend Found
• Foreclosures: Lender Insurance Claims Require Understanding of “Credit Bid” Rules

July 2007

• Where Two Insureds Have Separate Policies Covering Same Property, Each Insurer Must Pay Only Part of Loss
• “Development/Construction Exclusion” Applies Only If Insured—Not Another Party—Engages in Excluded Activity
• California Supreme Court Watch

June 2007

• In “Continuous Injury” Case, Presence of Other Available Insurance Relieves CIGA of Duty to Contribute
• In Reimbursement Claim, Whether Insured is “Made Whole” is Determined Without Deducting Attorney Fees and Costs
• Insurer Has No Duty to Defend Wife Against Claims Arising From Husband’s Molestation of Granddaughters
• Defense of Administrative Proceedings

May 2007

• Insurer Must Defend Insured in Assault and Battery Case Where There is Possibility That Insured Acted in “Self-Defense”
• In Continuous Injury Case, Insured Cannot Trigger Defense Under Early Excess Policy When Insured Has Later Primary Policy With SIR
• Rescission Is Proper Where Applications Mischaracterize Nature of Claims Against Insured

April 2007

• Subcontractors’ Insurers Who Defend Developer as “Additional Insured” Can Recover Portion of Defense Costs from Developer’s Excess Insurer
• Coverage for Property for Which Insured is “Legally Liable” Applies to Bailed Property, and Is Not Liability Insurance
• Two Insurers Must Share UM/UIM Loss on Pro Rata Basis

March 2007

• Inadequate Investigation of Fungus/Collapse Claim Exposes Insurer to Bad Faith Liability
• Insurer Has No Duty to Defend or Indemnify Landlord Against Breach of Lease Claim Brought by Tenant
• Although Landslide Results in Damage During Successive Policy Periods, There Is Only One “Occurrence” For Purposes of Limits

February 2007

• Insurer Has No Duty to Defend Suit Alleging Insured Sent Unsolicited Fax Advertisements
• “Occurrence” in CGL Policies Means Injurious Exposure to Asbestos, Not the Manufacture and Distribution of Asbestos Products
• D&O Policy Does Not Cover Insured’s Breach of Contract
• Bad Faith: "Genuine Dispute" Defense Continues to Gain Momentum in First-Party Bad Faith Cases

January 2007

• Whether Person Qualifies as “Insured” For UM/UIM Claim Must Be Decided By Arbitrator
• Insurer Obligated to Indemnify for Pollution Remediation Where Covered and Non-Covered Event are Concurrent Causes of Indivisible Damage
• Arbitration Must Be Completed Before Insured May Pursue Lawsuit for UM/UIM Benefits
• In Rental Car Transaction, Excess Insurer Has Limited Duty to Investigate Insurability and Can Rely on Misrepresentations to Avoid Coverage
• Recent Legislation: California Legislature Amends Statute Governing Priorities of Multiple Insurers Covering Motor Vehicle Accidents

December 2006

2006 Annual Review of California Insurance Law (PDF)

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November 2006

• Vacancy Exclusion’s Exception for Building “Under Construction” Applies to Renovations and Additions
• D&O Policy Does Not Cover Liability Arising From Organization’s Alleged Default on Bonds
• D&O Insurers Not Entitled to Summary Judgment Where Factual Issues Exist About Whether Insureds’ Settlement With Claimants Was Purely “Restitutionary”

October 2006

• Despite “Supplementary Payments” Clause, Insurer May Not Indemnify Insured for Attorney’s Fees Awarded in Discrimination Cased
• Insurer That Initially Refuses to Defend May Not Later Intervene to Prevent Insured’s Settlement
• Settling Insurers Cannot Obtain Contribution from Other Insurers Who Either Had No Notice or No Coverage
• Subrogation: “Superior Equities” Doctrine Can Bar Recovery Despite Comparative Fault Rules

September 2006

• Liability Policy Covers Property Damage Occurring During Policy Period, Even Though Claimant Does Not Own Property Until After Policy Period
• Insurer May Rescind Policy Based On Insured’s Failure to Disclose Prior Loss History
• Insurance Code Section 533 Does Not Necessarily Bar Coverage for Claims Alleging Breach of Fiduciary Duty
• Environmental Coverage: "Total Pollution Exclusion" Precludes Coverage for Liability Arising From Discharge of Dirt and Rocks into Creek

August 2006

• "Auto" Exclusion Bars Coverage for Insured’s Negligence in Leaving Children in Parked Car
• In Contribution Action, If Participating Insurer Proves Potential for Coverage, Non-Participating Insurer Must Prove Absence of Actual Coverage
• Liability Insurer Entitled to Contribution from Coinsurer Who Had Obtained Release from Mutual Insured
• UM/UIM: California UM Claimant Can Recover Costs Allowed By C.C.P. § 998, Even If Award and Costs Exceed Policy Limit

July 2006

• Appraisers Are Not Authorized to Determine Cause of Loss
• Excess Judgment Required Before Excess Insurer Can Sue Primary Insurer for Failure to Settle
• Defective Computer Chips Incorporated Into Disk Drives Do Not Cause “Property Damage”
• Bad Faith: Insured Can Assign Claim for Attorney Fees

June 2006

• Despite Rescission, Policy’s Contractual Limitation Clause Bars Insured’s Suit
• Spouse of Named Insured Can Sue For Bad Faith, Even Though Spouse Not a Defendant in Underlying Action
• D&O Policy Allows Allocation of Defense Fees While Suit Pending
• “Damages” Means Court-Ordered Judgments, And Affirmative Defenses Are Not “Suits”
• New Regulations: No Depreciation of Labor Expense

May 2006

Newsletter not published

April 2006

• Insurer Can Rescind Based on Material Misrepresentation in Application
• Under Claims-Made Policy, Claim is “First Brought” Insured Where Receives Demand Letter
• Insured Cannot File One Suit for Contract Damages and Another Suit for Bad Faith Damages
• Subrogation: Insurer Need Not Prove “How or Why” Sewage Backed Up from City Main if Evidence Eliminates Other Causes

March 2006

• D&O Insurer Not Obligated to Defend HOA for Breach of Contract
• EPL Exclusion Does Not Apply Where Subcontractor’s Employees Sue Insured
• No Liability for Negligent Investigation Where Loss is Not Covered
• Indemnity Agreements: Indemnity Clause Imposes Duty to "Defend" Even in Absence of Duty to "Indemnify"

February 2006

• Withdrawal of Claim Bars Later Resubmission if Prejudice Results
• Policy Covers Expenses Incurred Recovering Seized Aircraft
• Whether Insurer Unreasonably Handled UIM Claim Is Question of Fact
• Agents and Brokers: Surplus Lines Broker Can Owe Duty of Care to Third Party

January 2006

• No Coverage for Liability Arising From Sale of Real Property
• Insured’s Solicitation of Competitor’s Customers is Not “Advertising”
• Pollution Claims Do Not Fall Within CGL Insuring Agreements
• Recent Legislation: Additional Living Expense, Public Adjusters, Policy Forms and Mediation

November 2005

• New Statute Bars "Type I" Indemnity In Residential Defect Claims
• Detrimental Reliance on Insurer’s Investigation Bars Limitation Defense
• Limitation Period on Suit for Defense Costs is Tolled
• Insured Entitled to Trial, Despite Defective Opposition to MSJ

October 2005

• Carrier Recovers Defense Costs for Non-Covered Claims
• Vacancy Exclusion Applies to Building During Renovation
• Late Notice Excused Under “Claims Made and Reported” Policy
• Knowledge of Broker Who Becomes Agent Can Defeat Rescission

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