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

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

An auto exclusion in a homeowners insurance policy barred coverage where the insured’s negligent supervision of her granddaughter exposed the granddaughter to the risk of negligent operation of an auto. ( Farmers Ins. Exchange v. Superior Court (2013) 220 Cal.App.4th … 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

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

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

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

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

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

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