Search
 

Apples and Oranges: CGL Policy Provisions Related, but Distinct

Like the popular metaphor of comparing apples to oranges, some CGL policy provisions are related, yet distinct. A ruling by a Calif. appellate court could shed light on three specific provisions.

By Joseph M. Junfola, CPCU | Updated on November 07, 2011

On September 22, 2011, an appellate court in California issued a ruling that is troublesome, but instructive. Both the Court and the insurer seriously confused the interrelationship of three compatible provisions in the insurer’s Commercial General Liability policy, but in different ways. These are the duty to defend as provided for in the insuring agreement; the application of the deductible to defense expenses, as explained in an endorsement; and the inclusion of defense expenses in the Supplementary Payments provision in the policy.

To carry the metaphor further, apples and oranges are both fruit, and like apples and oranges these policy provisions are related, but distinct. The duty to defend is related to and compatible with, but distinct from the application of a deductible to defense expenses. And defense expenses are supplementary payments.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.