The United States Court of Appeals for the Ninth Circuit, applying California law, has affirmed a district court’s determination that California Insurance Code § 533 barred indemnity and defense costs coverage for a lawsuit...more
In a move aimed at strengthening consumer protection and improving insurer transparency, the state of Florida has implemented the Insurer Accountability Act, a bipartisan insurance law that introduces a range of new duties...more
There is a common misconception that claims for intentional conduct are not covered under your insurance policy. In fact, insurance policies commonly provide coverage for intentional misconduct. For example, directors and...more
This 20th edition of Unprecedented, our weekly update on COVID-19-related litigation, finds both plaintiffs and defendants with reasons to celebrate. Insurance carriers avoided consolidation of coverage disputes in...more
By statute, California law holds that willful misconduct—where an insured intends to cause someone harm—is not insurable as a matter of public policy. For years, insurance companies have sought to expand this prohibition to...more
"California prohibits insurers from indemnifying policyholders for their intentional misconduct, as a matter of public policy and as codified in California Insurance Code section 533. This bar on insurance coverage, however,...more
Willful misconduct is uninsurable. It is a fundamental principle of insurance, and it makes sense to both the lay and the lawyerly. But few states go as far as to codify this principle in the insurance code. California is an...more
The Central District of California held that Section 533 of the Insurance Code eliminated any potential for coverage for suit under the state False Claims Act. On January 4, the U.S. District Court for the Central...more
Professional liability policies cover claims based on the insured’s alleged negligent acts, errors or omissions, and not claims for “sanctions or penalties” for “willful” professional misconduct. But the insurer’s duty to...more
When an insurer agrees to defend its insured against a potentially covered claim without reserving the right to deny coverage, the insurer usually has the right to control the defense of the underlying lawsuit. See 3 Jeffrey...more