Insurance coverage when property is sold
Section 305 discusses the effect that transferring insured property has on insurance coverage. The Code states: The mere transfer of subject matter insured does not transfer the insurance, but...
View ArticleInsurance application disclosures
The next several sections are part of the Code’s discussion on “concealment” under California law. Section 330 defines concealment as follows: Neglect to communicate that which a party knows, and...
View ArticleThe failure to disclose
Section 331 of the Insurance Code describes the “effects of concealment,” in stating: Concealment, whether intentional or unintentional, entitles the injured party to rescind insurance. This section is...
View ArticleThe disclosure obligation – Insurance Code section 332
Insurance Code section 332 relates to what kind of disclosure is required in making an insurance contract. The Code states: Each party to a contract of insurance shall communicate to the other, in...
View ArticleUnintentional misrepresentations – material?
Insurance Code section 334 defines “materiality” in the insurance context: Materiality is to be determined not by the event, but solely by the probable and reasonable influence of the facts upon the...
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Insurance carrier’s duty to settle within policy limits
Policyholders should be aware that their insurance carrier is under a duty to accept reasonable settlement offers within policy limits. Under California law, if a claim is filed against a policyholder...
View ArticleWhen will a policyholder be defended by independent counsel?
When an insurance carrier loses the right to control a policyholder’s defense due to a conflict of interest, an insurance carrier is required to hire an independent counsel for the policyholder. This...
View ArticleWhat are your insurance brokers’ duties and obligations?
When a policyholder hires a professional insurance broker, she may expect that the broker will procure an adequate insurance policy. However, a broker may not always follow through with their...
View ArticleInsurance brokers are under no duty to procure specific insurance unless...
We recently discussed the duties owed to a policyholder by his or her insurance broker. This post explores a 2010 California appellate court decision that showcases the scope of an insurance agent’s...
View ArticleFlood Insurance – Should you purchase it?
Last week, Hurricane Sandy engulfed the eastern seaboard causing damage to homes and businesses. One unexpected result for many property owners was the flooding of basements and garages. This post...
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