Insurance Law News

Insurance Law Alert

As a free service to clients, prospective clients and other interested persons, we publish the Insurance Law Alert, a newsletter that provides concise summaries of recent legislation and appellate decisions.

Recent Rulings and Legislation

January 2019

• Insurer of “Suspended” Developer Cannot Pursue Subrogation Action Against Developer’s Subcontractors

• Trial Court Properly Grants Insurer’s Motion to Set Aside Default Judgments Against Insured on Ground of Extrinsic Mistake

• In Personal Injury Action Brought Against Deceased Insured’s Estate Pursuant to Probate Code, Insurer Is De Facto “Party” That Can Be Liable for Costs

December 2018

• 2018 Annual Review of California Insurance Law (PDF) - Download Free Adobe Reader program

November 2018

• Policy Covering “Loss of Use of Tangible Property Not Physically Injured” Covers Insured’s Liability for Claimant’s Loss of Ability to Use Property as Nightclub

October 2018

• Each Person” Limit Applies to All Damages, Including Loss of Consortium Damages, Arising from Bodily Injury to One Person
• “Impaired Property” Exclusion Relieves Insurer of Duty to Defend Insured Contractor Against Suit Alleging That Insured’s Negligent Work Resulted in Loss of Use of Claimant’s Property
• Party-Appointed Appraiser is "Arbitrator" and, Subject to Narrow Exceptions, is Barred from Giving Evidence About Appraisal Proceeding

Sepember 2018

• Fair Claims Settlement Practices Regulations Do Not Conflict with Unfair Insurance Practices Act

August 2018

• Insured’s “Unclean Hands” Prevents Insured from Continuing to Pursue Lawsuit Against Insurer

July 2018

• Trial Judge’s Errors During Trial Mandate Reversal of Bad Faith and Punitive Damage Award Against General Liability Insurers

June 2018

• "Occurrence" Found Where Insured Employer Negligently Hires, Retains or Supervises Employee Who Intentionally Injures Third–Party Claimant
• Insurer's Defense of Additional Insured Under Reservation of Rights Does Not Create Conflict of Interest Requiring Independent Counsel

May 2018

• Liability Policy Covering "Personal Injury" Offense of "Invasion of Right of Private Occupancy" Covers Non-Physical Invasions of Rights in Real Property
• Valuable Possessions Policy Does Not Cover Insured’s Financial Loss Resulting from Purchase of Counterfeit Wine

April 2018

• Professional Liability Insurer Has No Duty to Defend Insured Against Claim That Insured Knew About, or Reasonably Could Have Foreseen, Before Inception of Policy
• Lawsuit Filed by Group of Insurers, As Subrogees of More Than 100 Insureds, Does Not Qualify as “Mass Action” Under Class Action Fairness Act

March 2018

• General Liability Insurer Has No Duty to Defend Pharmaceutical Manufacturer Against Governmental Lawsuits Alleging Fraudulent Scheme to Promote Opioid Use
• "Faulty Workmanship" Exclusions Do Not Relieve Insurer of Duty to Indemnify Insured for Damage to Insured's Non-Defective Work Occurring Before Completion of Work
• Although Additional Insured Endorsements Purportedly Limit Coverage to "Ongoing Operations," Insurer Has Duty to Defend Additional Insured Against Construction Defect Lawsuits
• Liability Policy's "Invasion of Privacy" Exclusion Bars Coverage Insured's Alleged Violation of Telephone Consumer Protection Act

September 2017

• Insured Must Exhaust Lower Layers of Coverage Before Accessing Higher Layers of Coverage, If Language of Excess Policies So Requires

August 2017

• "Professional Services" Exclusion Bars Coverage for Pipeline Owner's Liability for Explosion Arising Out of Failure to Mark Pipeline

July 2017

• Insurer Not Entitled to Rescind Based on Insured's Answers to Ambiguous Questions in Application
• Cracking of Underground Tank's Sheathing Was Not "Collapse" Where Policy Expressly Stated That "Collapse" Did Not Include "Cracking"
• "Genuine Dispute" Doctrine Does Not Necessarily Insulate Insurer from Suit Alleging Bad Faith Delay in Paying Underinsured Motorist Benefits

June 2017

• Where Building Was Not "Total" Physical Loss, Insurer Was Obligated to Pay Cost of Repair Less Depreciation, Which Was More Than Pre-Loss Fair Market Value

May 2017

• If Proposed Settlement Invades Excess Layer, Excess Insurer Can Either Approve Settlement, Reject It and Take Over Defense, or Face Suit for Reimbursement

April 2017

• Excess Liability Policy Covers Additional Insured Only Where Named Insured's Acts or Omissions Cause Injuries to Claimant

March 2017

• No "Occurrence" Where Insured Contractor Knew About and Intended to Perform Defective Work in Hope or Mistaken Belief That Defective Work Would Not Cause Property Damage

February 2017

• Personal Auto Policy's "Non-Owned" Auto Coverage Inapplicable Where Insured Had "Regular Use" of Company Vehicle
• Replacement Cost Regulation Enacted by Department of Insurance Held Valid by Supreme Court

January 2017

• Insurer Has Duty to Defend Insured Fireplace Contractor Against Suit Involving Potential "Pyrolysis" Occurring During Policy Period, Even Though Resulting Fire Did Not Occur Until After Policy Period

December 2016

• 2016 Annual Review of California Insurance Law (PDF) - Download Free Adobe Reader program

November 2016

• CGL Policy's "Mold" Exclusion Does Not Relieve Insurer of Duty to Defend Insured Against Suit Alleging Property Damage Arising from Both Water Intrusion and Mold

October 2016

• Insurer Has No Duty to Defend Insured Developer Against Suit Alleging Fraudulent Concealment of Construction Defects

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