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

If an insurer’s failure to adequately investigate the insurability of an insured prevents the insurer from later rescinding a policy covering a commercial motor vehicle, the insurer may be liable to the injured party for up to the higher limit … Read More

Where a liability insurer satisfied the requirements set forth in Blue Ridge Ins. Co. v. Jacobsen (2001) 25 Cal.4th 489 for seeking reimbursement of an uncovered settlement from an insured, the insurer was not also separately required to give the … Read More

A general liability insurer had no duty under California Insurance Code section 481.5(b) to refund advance premiums paid by its insured because those premiums were “fully earned” and there was no “reduction in coverage.” ( CRV Imperial-Worthington LP v. Gemini … Read More

Where an insured general contractor was fired from a construction job before the job was ever completed, a subsequent construction defect lawsuit against the insured fell within standard policy exclusion j.(6), and did not trigger the exclusion’s exception for property … Read More

Where a liability insurer issues a preliminary “reservation of rights” letter, but never actually agrees to defend its insured and never actually pays any defense fees during the underlying litigation, the insurer is precluded from invoking Civil Code section 2860’s … Read More

An insured must strictly comply with a warranty provision in order to obtain coverage when the subject matter of the warranty bears directly on the risk underwritten by the policy. ( Trishan Air Inc. v. Federal Ins. Company (2011) WL … Read More

A personal umbrella insurer had no duty to defend its insured against a suit alleging that the insured had sexually harassed and sexually battered the claimant. ( Shanahan v. State Farm General Insurance Company (2011) WL 806385) Facts Cheryl Skigin … Read More

Because an extended replacement cost provision did not actually alter the policy limit, but instead merely provided for a potential payment in excess of the limit, the insureds were still required to repair, rebuild or replace in order to recover … Read More

A liability insurer who was required to indemnify its insured did not have “superior equities” to, and thus could not pursue “equitable subrogation” against, the insured’s broker who allegedly was negligent in failing to procure other insurance to cover the … Read More