A trial court has discretion to defer an insurance appraisal proceeding until the resolution of a declaratory relief action regarding the legality of the insurer’s method of calculating depreciation. ( Alexander v. Farmers Ins. Co. (2013) 219 Cal.App.4th 183) Facts … Read More

A self-insured retention (SIR) provision will not excuse an insurer from a duty to defend unless the policy expressly and unambiguously conditions the insurer’s duty to defend on satisfaction of the SIR. ( American Safety Indemnity Co. v. Admiral Ins. … Read More

Unless a third-party claimant makes a settlement demand against an insured or otherwise expresses some interest in settling with the insured, an insurer has no affirmative duty to offer its policy limits in settlement, and thus the insurer cannot be … Read More

An “assault or battery” exclusion barred coverage for an insured nightclub owner’s alleged negligence in failing to prevent an assailant from throwing flammable liquid on a claimant and then setting the claimant on fire. (Mount VernonFire Ins. Corp. v. Oxnard … Read More

A water tank that was separated from the dwelling by clear space but connected by an underground pipe was not “attached” to the dwelling and, therefore, was subject to a fire policy’s lower limit of liability for “Other Structures.” ( … Read More

When a liability insurer withdraws a reservation of rights that had previously triggered a right to independent counsel, the insurer no longer has an obligation to allow the insured to control the litigation, and no longer has an obligation to … Read More

Because a policy’s loss of rents coverage did not specifically require that a building be rented when a physical loss occurred, the insured was entitled to attempt to prove an insurance claim for loss of rents even though the building … Read More

An uninsured motorist insurer could not deny coverage based on an exclusion which was allowed by statute, but which was not actually included in the policy. ( Progressive Choice Ins. Co. v. California State Automobile Association Inter-Ins. Bureau (2013) 218 … Read More

Various insurers’ reservation of rights letters in an environmental cleanup action did not trigger a conflict of interest that would give the insured the right to select independent counsel at the insurers’ expense. ( Federal Ins. Co. v. MBL, Inc. … Read More

Statutory violation exclusions in two insurers’ policies precluded coverage for lawsuits alleging claims for violation of the Song-Beverly Act arising from collection of customer zip codes during credit card transactions. ( Big 5 Sporting Goods Corp. v. Zurich American Ins. … Read More

A first-party claimant may pursue a cause of action against an insurer for violations of California’s Unfair Competition Law (Business & Professions Code section 17200 et seq.), even though California’s Unfair Insurance Practices Act (Insurance Code section 790.03 et seq.) … Read More

An injured plaintiff who settled a personal injury lawsuit against the tortfeasor and received payment from the tortfeasor’s insurer under the liability provision of the insurance policy was not precluded from later separately suing the tortfeasor’s insurer based on the … Read More

A general liability insurer’s reservation of rights to assert a “contractor’s special condition” created a conflict of interest which gave the insured the right to select independent counsel at the insurer’s expense. ( Schaefer v. Elder (2013) 217 Cal.App.4th 1) … Read More

General liability policies that covered “occurrences” and “wrongful acts” during the policy period did not potentially cover an insured’s alleged tortious conduct that took place before the policy period. ( City of Buenaventura v. Insurance Company of the State of … Read More

An insurer was not liable for a fire loss where the insured failed to maintain an automatic sprinkler system, and the insurer was entitled to reimbursement of an advance payment the insurer made during its investigation of the claim.. ( … Read More

Where a liability insurer initially breached its duty to defend an insured, and a dispute later arose regarding allegedly excessive or improper fees charged by independent counsel, the insurer could only seek reimbursement of such fees from the insured, not … Read More

Damage caused by plumbing leakage that continued for one to two months, even though hidden and unknown to the insureds, was not “sudden” and, therefore, was excluded. ( Brown v. Mid-Century Insurance Company (2013) 215 Cal.App.4th 841) Facts Leroy and … Read More

Where a liability policy expressly provided for a defense against criminal charges, California Insurance Code section 533.5(b) did not relieve the insurer of a duty to defend an insured against a federal criminal indictment. ( Mt. Hawley Insurance Company v. … Read More

In a continuous and progressive injury case, an excess policy was not triggered until all collectible primary policies were exhausted, but multiple primary policies issued by the same insurer could not be “stacked.” ( Kaiser Cement and Gypsum Corporation v. … Read More

No coverage existed where a building was “vacant” for more than 60 days before a theft and vandalism loss, even though the policy itself was issued less than 60 days before the loss. ( Travelers Property Casualty Company of America … Read More