insurance – Page 5 – Duane Morris Insurance Law

September 6, 2012September 8, 2014 by Paul J. Killion

The California Court of Appeal Says Nice Try To Attempt to Overturn The California Supreme Court’s Henkel Decision Based on an 1872 Statute

On August 30, 2012, Division Three of the California Court of Appeal for the Fourth District put to rest a new argument devised by policyholders to attack the California Supreme Court’s seminal consent-to-assignment ruling in Henkel Corp. v. Hartford Acc. & Indem. Co., 29 Cal.4th 934 (2003). See Fluor Corp. v. Superior Court (Slip Opn. dated Aug. 30, 2012) (Fourth Dist. No. G045579)

The Fluor case involved the same consent-to-assignment clause at issue in Henkel: “Assignment of interest under this policy shall not bind the Company until its consent is endorsed hereon.” (See Henkel, supra, 29 Cal.4th at 943.) Continue reading “The California Court of Appeal Says Nice Try To Attempt to Overturn The California Supreme Court’s Henkel Decision Based on an 1872 Statute”

August 9, 2012September 8, 2014 by Duane Morris

State of California v. Continental Insurance

The California Supreme Court issued its decision in the State of California v. Continental Insurance case on August 9. In a unanimous opinion, written by Justice Ming Chin, the Court held that the policy language at issue provides for “all sums” allocation and permits stacking of policy limits.

The Court’s opinion reflects a focus on the particular insurance policy wording at issue. In its first holding, the opinion states: “Under the CGL policies here, the plain ‘all sums’ language of the agreement compels the insurers to pay ‘all sums which the insured shall become obligated to pay. . . for damages . . . because of injury to or destruction of property ….” The Court went on to hold that the policy language before it “does not limit the policies’ promise to pay ‘all sums’ of the policyholder’s liability solely to sums or damage ‘during the policy period.’”

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June 14, 2012September 5, 2014 by Brian A. Kelly

Any Friendly Wagers on Outcome of State of California v. Continental Ins.?

As you may be aware, the California Supreme Court heard argument in the State of California case on May 30th. (See Bill Baron’s May 4, 2012 posting to this site.) I’ve entered into a wager with my partner and insurance guru, Phil Matthews, on the outcome of State of California, which should decide two very important insurance coverage questions in California: (1) all sums; and (2) stacking of policy limits. I won’t reveal our respective wagers, and recognizing that predicting the outcome of an appellate court is not exactly a science, I invite you to email me with your prediction as to the outcome of this case. Continue reading “Any Friendly Wagers on Outcome of State of California v. Continental Ins.?”

June 1, 2012September 8, 2014 by Cyndie M. Chang

California Federal Court Finds No Conflict with Allegedly Competing Other Insurance Clauses

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.

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May 4, 2012September 9, 2014 by William J. Baron

State of California v. Continental Ins. Co., Oral Argument Set for May 30

The California Supreme Court has set oral argument in State of California v. Continental Insurance Co. for May 30, 2012 at 9:00 a.m. in San Francisco.

This case presents two issues for review by the Court: (1) the so-called “all sums” issue, and (2) “stacking” of policy limits. First, when continuous property damage occurs during the periods of several successive liability policies, can each insurer be liable for all damage both during and outside its policy period, up to the amount of the insurer’s policy limits, or is each insurer only liable for property damage that took place during its policy period? Second, if each insurer can be liable for damage taking place outside its policy period, can the insured “stack” policy limits – that is, can the insured recover the combined limits of successive policies?

Philip R. Matthews and William J. Baron of Duane Morris submitted an amicus curiae brief in the case, on behalf of certain London Market Insurers.

April 12, 2012September 5, 2014 by Max H. Stern

New Twists In California Contribution Claims Involving SIRs

An intermediate appellate court in California has issued a decision addressing inter-insurer contribution claims for indemnity payments in the context of self-insured retentions (SIRs) that has a couple of new twists worth noting. In Axis Surplus Ins. Co. v. Glencoe Ins. Ltd. (April 11, 2012), the Court of Appeal for the Fourth District affirmed the trial court’s ruling that Axis was entitled to contribution from Glencoe in the amount of 60% of what Axis paid to settle a construction defect claim against their mutual insured, despite the facts that the insured only made its settlement payment that satisfied the Glencoe SIR after Axis made its settlement payment, that Axis did not prove actual covered damages exceeding the total settlement amount, and that both insurers’ policies contained equal-shares allocation “other insurance” wording.

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March 30, 2012September 5, 2014 by Paul J. Killion

Do All CGL Policies State Aggregate Limits Only For Products and Completed Operations Hazards?

Not all policies state aggregate limits only for the Products and Completed Operations hazards. Some provide a total limit of liability. For example, many umbrella policies use the following Limits of Liability wording:

The limit of the company’s liability shall not exceed the amount stated in Item 2(a) of the declarations as a result of any one occurrence. The company’s liability shall be further limited to the amount stated in item 2(b) of the declarations in the aggregate for each annual period during the currency of this policy separately in respect of (1) the products hazard; (2) the completed operations hazard; and (3) personal injury by occupational disease sustained by any employees of the insured;

Continue reading “Do All CGL Policies State Aggregate Limits Only For Products and Completed Operations Hazards?”

March 9, 2012September 5, 2014 by Paul J. Killion

Does The Wallace & Gale Decision Contradict Typical CGL Insurance Policy Wording?

In its decision In re Wallace & Gale Co., 385 F.3d 820 (4th Cir. 2004), the Fourth Circuit held that the completed operations aggregate in post operations policies applies where (a) initial exposure occurred after the operations were completed, or (b) initial exposure was during operations but injury continues after operations were completed. Policyholder counsel sometimes attempt to dismiss Wallace & Gale as conflicting with the contract wording. But the Fourth Circuit’s completed operations analysis is based on a straightforward application of the insurance contract language.

Continue reading “Does The Wallace & Gale Decision Contradict Typical CGL Insurance Policy Wording?”