Insurance
Oct. 14, 2009
An Insurer's Duty to Pay Independent Defense Fees
Kirk Pasich of Dickstein Shapiro discusses the scope of Cal. Civil Code Section 2860 and an insurer's duty to pay independent defense costs.
INSURANCE
By Kirk PasichCalifornia Civil Code Section 2860 is the statutory embodiment of San Diego Navy Federal Credit Union v. Cumis Insurance Society, Inc., 162 Cal. App. 3d 358 (1984). In Cumis, the court held that an insurer has a duty to pay for independent counsel selected by the insured whenever the insurer defends under a reservation of rights. Section 2860 codified this principle, stating: "If the provisions of a policy of insu...For only $95 a month (the price of 2 article purchases)
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