Newsletter
FORCING INSURED TO DEMAND ARBITRATION [APPRAISAL]
In general Insurance Code § 2071 requires appraisal for resolution of contested claims. The appraisal term creates an arbitration agreement subject to the statutory arbitration law. [Community Assisting Recovery Inc. v. Aegis Security Ins. (2001) 92 Cal. App.4th 886] Appraisal hearings are a form of arbitration and are generally subject to
RECONSIDERATION: REQUEST FOR, BY INSURED
In general After an initial denial of coverage, an insured may request reconsideration of the insurer’s denial of coverage. The request may be coupled with additional information, which information may serve as extrinsic facts. [El-Com Hardware v. Fireman’s Fund (2001) 92 Cal.App.4th 205, 217] See § D25 DENIAL OF COVERAGE [§ D25:8
AUTOMOBILE EXCLUSIONS
In general After years of judicial straining to reconcile the oftentimes impeding interests of automobile liability insurers, their insureds and the State’s interest by way of a general public policy making owners of motor vehicles financially responsible to those injured by them in the operation of such vehicles, the Legislature
DO YOU THINK YOU UNDERSTAND INSURANCE LAW?
Bruce Cornblum’s monthly newsletter sent to thousands of attorneys on a monthly basis will change format for the next few editions. Rather than advising and discussing new cases and new original interesting insurance subjects, the NEWSLETTER will pose questions to the reader testing the reader’s knowledge of existing insurance law.
Replacement Cost Coverage – Adjustment process
Adjustment “process” where replacement cost coverage is requested On a typical basis, the way the losses are handled is that the insured and insurer reach an agreed scope and cost of repairs. For that amount the insurer will take away depreciation. See Insurance Code § 2051; § D30 DEPRECIATION [§ D30:4 Depreciation
MISTAKEN WITHHOLDING OF POLICY BENEFITS BY INSURER
In general “Mistaken withholding of policy benefits” is a defense often urged by insurers to a suit filed by the insured for wrongful withholding of policy benefits, i.e. a refusal to pay benefits without proper cause. Compare § W31 WRONGFUL WITHHOLDING. [Graciano v. Mercury General (2014) 231 Cal. App. 4th 414, 433-434]
Insurance Coverage Litigation – How to Enforce Request for Admissions (RFA)
Types of motions available to propounding party There are three types of motions that a party propounding RFAs may initiate: 1. Motions to deem RFAs admitted based upon the responding party’s failure to serve any responses at all in a timely fashion. [CCP § 2033.280(b)]; 2. Motions to compel further
COVERED AND NONCOVERED CLAIMS – Specific allegations versus general allegations; both alleged in the third party complaint
Where a third party complaint alleges both specific and general allegations of wrong doing, the insurer must consider both in order to determine whether there is a duty to defend, i.e. whether there is a potential liability under the policy. Where the specific allegations are not covered or are excluded,
Covered intentional act, total confusion in the California Court of Appeal
There are five types of acts considered in the courts when the issue is whether the act in question is covered as an “accident” or “occurrence” under a liability or property policy. The five acts are: 1. intentional act; 2. deliberate act; 3. fortuitous act; 4. acts excluded under Insurance