A California federal court recently issued a summary judgment ruling after interpreting two “other insurance” clauses in California State Automobile Inter-Insurance Bureau v. Progressive Casualty Insurance Company, 2012 U.S. Dist. LEXIS 57996 (N.D. Cal, April 25, 2012). One insurer argued that the “other insurance” clauses conflicted with each other, but the Court disagreed and found no conflict where one other insurance clause specifically provided for excess coverage in certain circumstances.
The policyholder had a homeowner’s insurance policy with California State Automobile Inter-Insurance Bureau (“AAA”) and a watercraft policy with Progressive Casualty Insurance Company (“Progressive”). Both issued liability limits of $500,000.