So You Think You Know the Law…(Answers to the Winter Edition 2012 of Gray Matters)
January 2012
1. A general liability insurer’s duty to defend is not only determined by the policy and the allegations in the complaint, but also on facts that are extrinsic to the complaint. (True or False)
True: The duty to defend is determined by reference to the policy, the complaint, and all facts known to the insurer from any source. Montrose Chem. Corp. v. Sup.Ct. (Canadian Universal Ins. Co., Inc.) (1993) 6 Cal.4th 287, 300; Griffin Dewatering Corp. v. Northern Ins. Co. of N.Y. (2009) 176 Cal.App.4th 172, 198 – “An insurance company can thus get into trouble by refusing to consider facts which it knows, but which are extrinsic to the complaint and which show … a potential for coverage.”For any questions you may have regarding insurance coverage/bad faith, please contact Wendy Lin Suh in our Encino office.
Return to NewsletterPlease Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.
