Watch the full video at https://rumble.com/vf5p91-a-video-explaining-the-availability-of-coverage-for-defense-if.html and at https: // youtu. be / t6iJrxHe3VE
In the main case of Gray v. Zurich Ins. Co. 65 cal. 2d 263, 54 cal. Rptr. 104 (1966), the Supreme Court of California established the basic rule followed in most jurisdictions to determine whether or not an insurer is required to defend. It found that insurers that issue policies with a double promise (a promise to both defend and reimburse) are required to defend any cost where there is a potential that the insurer must harm.
The insured in Gray ] was alleged to have attacked and beaten the plaintiff. The insurance and bylaws in California prohibited compensation for an insured intentional act. Assaults and batteries are by definition intentional acts, so the insurer claimed that there was no defense.
The complaint against the insured only claimed the intentional liability for damages for the battery. The court concluded that the insurer would be forced to defend because there was a potential that the complaint could be changed, or the jury could find, that the insured's actions were merely negligent. The court's decision was based on the wording of the policy and the conclusion that the obligation to defend was broader than the obligation to injure. The insurer's agreement to defend complaints even if they were "false or fraudulent" led the court to conclude that the insurer agreed to extend the obligation to defend far beyond the documents for which coverage for compensation may exist. exposure to insurers insuring personal and commercial risks. Although a policy excludes liability arising from violations of the law, there is a potential that the jury would find that there was no breach of law and that the policy provided coverage.
© 2021 – Barry Zalma
Barry Zalma, Esq. , CFE, now limits its practice to acting as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance claims and insurance fraud almost
equally for insurance companies and policyholders. He also acts as an arbitrator or mediator for insurance-related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims lawyer and more than 52 years in the insurance industry. He is available at http://www.zalma.com and email@example.com.
Mr. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award.
For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claims staff to become insurance claims staff.
Go to the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos on Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to the library for insurance claims – https://zalma.com/blog/insurance-claims-  bibliotek / Read posts from Barry Zalma at https://parler.com/profile / Hymn / post; and Read the last two issues of ZIFL here.