Insurance
Feb. 23, 2011
'Innocent Co-insureds’ Gain Broader Insurance Protection
The state Supreme Court determines that insurance companies must cover “innocent co-insureds” who suffer certain losses. By Stephen Huchting and Douglas Wood of Morris Polich & Purdy LLP.
On Feb. 17, in Century National Insurance Co. v. Garcia, the state Supreme Court declared the intentional loss and the dishonesty, fraud, or criminal conduct exclusions in a homeowner's policy to be invalid as to "innocent co-insureds." In resolving this previously unsettled issue, the Court concluded that both exclusions "impermissibly reduce coverage that is statutorily mandated" by California ...
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