A bodily injury claim against an interstate trucker was not covered by the trucker’s basic commercial auto policy, but was covered by an MCS-90 financial responsibility endorsement which was attached to the policy. ( Global Hawk Ins. Co. v. Century-National … Read More

In a reinsurance dispute, the doctrine of “invited error” prevented plaintiff, a ceding insurer, from complaining about a jury instruction given on a statute of limitations defense asserted by the defendants, two reinsurers. ( Transport Insurance Co. v. TIG Insurance … Read More

Issues regarding an insurer’s alleged bad faith delay in defending must be resolved in the trial court before the insurer can compel arbitration of independent counsel fees pursuant to Civil Code section 2860(c). ( Janopaul + Block Companies, LLC v. … Read More

A liability policy’s “supplemental payment” clause did not allow a third-party judgment creditor to recover costs and interest in a direct action brought against the California Insurance Guarantee Association. ( Clark v. California Ins. Guarantee Assn. (2011) 200 Cal.App.4th 391) … Read More

Although a property policy listed an “actual cash value” amount in the declarations, the policy could not reasonably be construed as a “valued” policy, but rather was an “open” policy. ( George v. Automobile Club of Southern California (2011) WL … Read More

A commercial auto policy’s “mechanical device” exclusion applied only where the device was used in the movement of property to or from the covered auto. ( Palp , Inc., v. Williamsburg National Ins. Co. (2011) 200 Cal.App.4th 282) Facts Palp, … Read More

Review the major cases and statutory changes ranging from December 2010 through November 2011 that will impact your California claims in 2012. Download the 2011 Annual Review of California Insurance Law (PDF) – Download Free Adobe Reader program Last year … Read More

The following cases are currently under review by the California Supreme Court:State of California v. Continental Ins. Co. (Case No. S170560) – (1) When continuous property damage occurs during the periods of several successive liability policies, is each insurer liable … Read More

No “theft” occurred where the police obtained a search warrant, seized and later destroyed the insured’s marijuana. ( Barnett v. State Farm General Ins. Co. (2011) 200 Cal.App.4th 536) Facts Greg Barnett grew numerous marijuana plants in the backyard of … Read More

A commercial general liability policy’s “personal and advertising injury” coverage did not require an insurer to defend an insured against a lawsuit alleging that the insured had copied another’s product. ( Oglio Entertainment Group, Inc. v. Hartford Cas. Ins. Co. … Read More

A policy that covered expenses and lost profits arising from the recall or withdrawal of a food product was not triggered where the insured’s errors did not actually cause an E. coli outbreak or a subsequent government product advisory. ( … Read More

After a default is entered against an insured, a liability insurer can intervene in the lawsuit in order to contest both liability and damages, even though the insured itself is procedurally barred from litigating those issues. ( Western Heritage Ins. … Read More

A “claims made” directors and officers liability policy did not provide coverage for a claim that was made during the policy period where a claim involving “interrelated wrongful acts” was first made before the policy period. ( Feldman v. Illinois … Read More

A first-party “pollution” exclusion eliminated coverage where a contractor caused the release of asbestos inside and outside a building. ( The Villa Los Alamos Homeowners Assn. v. State Farm General Insurance Company (2011) WL 3586475) Facts The Villa Los Alamos … Read More

A commercial general liability policy’s exclusion for violation of “intellectual property rights” precluded coverage for an insured’s alleged misappropriation of the claimant’s image and likeness. ( Aroa Marketing, Inc. v. Hartford Insurance Company of the Midwest (2011) WL 3672295) Facts … Read More

An insured’s deliberate act that caused unintended injury to the claimant was not an “occurrence,” or “accident,” within the meaning of a liability policy. ( State Farm General Insurance Company v. Frake (2011) WL 2714179) Facts John King and Patrick … Read More

A commercial general liability policy’s exclusion for “condominium and townhouse projects” precluded coverage for an insured’s work on a condominium project, even though the project consisted of free-standing residential units that resembled detached single-family homes. ( California Traditions, Inc. v. … Read More

A general liability insurer had no duty to defend or indemnify its insured against a suit seeking civil penalties and injunctive relief arising from the insured’s alleged violation of the California Safe Drinking Water and Toxic Enforcement Act of 1986. … Read More

Where an insured seeks declaratory relief regarding the interpretation of policy provisions, statutes and regulations pertaining to depreciation, a court has discretion to allow the declaratory relief action to proceed before requiring the insured to submit the issue of valuation … Read More

A general liability insurer had no duty to reimburse its insureds, who were licensed attorneys, for the time they spent defending themselves in a case brought by a third party. ( Richards v. Sequoia Ins. Co . (2011) 195 Cal.App.4th … Read More