California Insurance Law and Practice

California Insurance Law and Practice

California Case Law Update: July 2010

By Cassandra Franklin, Cassandra Shivers and Shaun Crosner *Readers that are lexis.com customers can access the cases referenced below directly. Non-customers can access the cases through LexisNexis Free Case Law. Since our last update, California courts have issued a number of interesting decisions...

Release of Asbestos During Ceiling Renovation Falls Within Pollution Exclusion of Property Insurance

By Samuel H. Ruby, Shareholder, Bullivant Houser Bailey PC A California Court of Appeal has held that the release of asbestos in and about a condominium complex during the scraping of acoustical "popcorn" ceiling falls within a property insurance policy's pollution exclusion. Villa...

Continuous Trigger: The ShamWow of Coverage Issues – Sucking Insurers Dry of Much More Than Would Seem Possible

Federal Court Rejects Continuous Trigger for Construction Defects Randy J. Maniloff, White and Williams, LLP We've all had a waiter use a towel to hold a plate and then put it down in front of us with the warning to be careful because the plate is very hot. Of course, when he's not looking...

California Appellate Court Upholds Trial Court’s Dismissal of a Coverage Claim for an Alleged Advertising Injury

By Kimberly L. Buffington , Partner, Pillsbury Winthrop Shaw Pittman LLP In Oglio Entertainment Group, Inc. v. Hartford Casualty Insurance Company , 200 Cal. App. 4th 573 (2011), the California Court of Appeal concluded that an entertainment company's insurance policy covering "personal...

California Court Denies Rescission of Insurance Policy

Brian Margolies, Partner, Traub Lieberman Straus & Shrewsberry LLP In its recent decision in Thompson v. Navigators Ins. Co ., 2012 U.S. Dist. LEXIS 60122 (S.D. Cal. Apr. 30, 2012), the United States District Court for the Southern District of California considered whether an insurer was entitled...

California Appellate Court Addresses Professional Liability Coverage Issues

Court Discusses Meaning of "Claim," Scope of Dishonest Acts Exclusion and Defense Duties Most professional liability policies contain an exclusion for dishonest acts. Many also include provisions giving the insurer a right, but not a duty, to defend against covered claims. A recent decision...

Pillsbury Winthrop: Ninth Circuit Reaffirms that Insurers May be Obligated to Initiate Settlement Discussions Under California Law

By Brian Martin and Nathaniel Smith , Pillsbury Winthrop Shaw Pittman LLP Insurers frequently disclaim any duty to participate in settling a third party claim against their insureds unless and until the third party claimant makes a settlement demand for a specific amount. The Ninth Circuit Court...

McCarter and English LLP on the Virginia Court’s Narrow Reading of “Proximate Cause” Allegations in a Complaint Is Contradicted by a California Court’s Reading of the Same Complaint

By Adam J. Budesheim, Associate, McCarter & English, LLP In AES Corp. v. Steadfast Insurance Co. , 725 S.E.2d 532 (Va. 2012), the Supreme Court of Virginia became the first ultimate appellate court to rule on whether general liability policies cover global warming injuries. The Virginia court...

California Supreme Court Issues Long-Awaited Allocation Decision: Adopts The “One Giant ‘Uber Policy’” Approach

By Randy J. Maniloff, White and Williams, LLP What do you call it when parties in California can get together and settle a trigger and allocation case? A Montruce. That didn't happen in State of California v. Continental Insurance Company . The Supreme Court of California HAS handed down...

Perkins Coie On All-Sums-With-Stacking Allocation Boosts Insurance Recovery Under “One Giant ‘Uber Policy’”

By Lara D. Cassidy, Koorosh Talieh, and Thomas McMahon, Attorneys, Perkins Coie The California Supreme Court's recent "all-sums-with-stacking" allocation ruling in California v. Continental Insurance Co., No. S170560, 2012 Cal. LEXIS 7324 (Cal. Aug. 9, 2012) (" California "...

California Adopts "All-Sums-With-Stacking" Doctrine for Continuous and Progressive Property Damage Liability Claims

By Andrew B. Downs , William J. Rusteen , Attorneys, Bullivant Houser Bailey PC Last month, the California Supreme Court issued its long-awaited ruling in State of California v. Continental Insurance Company , 55 Cal. 4th 186 (Aug. 9, 2012). The court adopted an "all-sums-with-stacking"...

Fire Evacuees Should Check Homeowners’ Insurance for Reimbursement of Certain Living Expenses Associated with Mandatory Evacuation

The California Department of Insurance (CDI) is currently tracking evacuations due to wildfires in the state, including the Mountain Fire near Riverside. Insurance Commissioner Dave Jones is reminding wildfire evacuees that they may be eligible for reimbursement for additional living expenses due to...

California Department of Insurance Releases First-in-the-Nation Survey of Insurance Company Procurement from Diverse Suppliers

206 Insurers report data on their supplier diversity efforts California Insurance Commissioner Dave Jones has announced the results of a first-in-the-nation survey of supplier diversity in the insurance industry. The reports of California’s largest 206 insurance companies have been posted...

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Law Enforcement Agencies Work Together to Provide Silver Fire Victims with Advice to Avoid Post-Disaster Insurance Schemes and Scams

Fraud detectives and the Department of Insurance Investigation Division’s Disaster and Recovery Team (DART) have been deployed to help educate residents about potential scams that target wildfire victims. The teams have coordinated with the Riverside County Sheriff and other allied agencies to...

Silver Lake Fire Calif Dept Insurance

Organized Crime Insurance Fraud Ring Busted by California Department of Insurance Investigators

A joint investigation with the Contra Costa District Attorney’s office led Department of Insurance investigators to the arrest of five individuals for allegedly running an insurance fraud ring throughout northern California and northern Nevada. The insurers’ losses are estimated between ...

California Approves License Allowing Insurance Agents to Assist Consumers Who Purchase Health Insurance Through New Health Insurance Exchange

California Insurance Commissioner Dave Jones has approved Covered California's application for an insurance business entity license. The license approval will allow licensed health insurance agents to affiliate with Covered California and sell health insurance offered on California's new health...

California Court Holds No Affirmative Duty to Settle Based Solely on the Likelihood of an Excess Judgment

By Ryan C. Tuley , William D. Burger, Jr. , and Christina Y. Ahn On October 7, 2013, the California Court of Appeal, in Reid v. Mercury Insurance Company [ enhanced version available to lexis.com subscribers ], held that an insurer does not have an affirmative duty to settle based solely on the...

Former Broker-Agent Charged with Multiple Felonies for Identity Theft and Forgery; More Victims Are Possible

Convicted felon uses stolen identity to secure credit card and submit bogus insurance applications Eugene Shy-Ren Hsu, a former insurance broker-agent, was arrested by California Department of Insurance officers and charged with multiple felony counts including o ne felony count of grand theft...

Four Insurance Consumer Protection Bills Sponsored by California Department of Insurance Signed Into Law in 2013

During 2013 Governor Jerry Brown signed four bills that the California Department of Insurance (CDI) sponsored during the legislative year. The bills are: AB 32 (Chapter 608, Statutes of 2013) authored by Assembly Speaker John Pérez (D-Los Angeles). AB 32, [ enhanced version available to...

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California Fair Claims And SIU Regulations Require Annual Training

You Must Comply With California Regulations by September 1 Fair Claims Settlement Practices Regulations All insurers doing business in California must comply with the requirements of California Fair Claims Settlement Practices Regulations (the “Regulations”) or face the ire of, and...