Insurance Coverage & Bad Faith Newsletter - December 2016

The end of 2016 is almost here. What a year! In anticipation of the holidays, California courts have issued several decisions which make for interesting reading. The decisions summarized in this letter address the proper procedure for cancellation of an insurance policy (the insurer did it right), continuous loss (apparently a house destroyed by fire can potentially involve a continuous loss, a.k.a. “slowly burning”), insurer contribution claims (beware general versus specific other insurance clauses), punitive damages (for insurers behaving badly, plaintiff’s attorney fees can be considered in determining the amount of punitive damages that can be assessed against an insurer), Alaska law barring an insurer’s recovery of defense costs can be preempted and last, but certainly not least, the California Supreme Court is finally going to decide if negligent supervision constitutes an occurrence (a.k.a., is it an accident from the employer’s standpoint when an employee behaves badly?).

We hope you have enjoyed this year’s summaries as much as we have enjoyed providing them to you.


Michael R. Velladao, Editor & Summary Author

Nicole R. Kardassakis, Summary Author