Panel: California Insurance Code Section 533.5 Does Not Preclude Defense Duty

Panel: California Insurance Code Section 533.5 Does Not Preclude Defense Duty

LOS ANGELES - A California appeals panel found May 1 that an insurer cannot avoid its contractual duty to defend a medical director insured against federal criminal charges by relying on California Insurance Code Section 533.5, subdivision (b), reversing a lower court's summary judgment ruling in favor of the insurer (Mt. Hawley Insurance Co. v. Richard R. Lopez Jr., No. B234082, Calif. App., 2nd Dist.; Div. 7.; 2013 Cal. App. LEXIS 346).

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