Legal Question in Civil Litigation in California
Personal Liability Insurance - How to Have LS Accepted for Coverage
I have Homeowners Policy with Pers Liab Coverage. I phoned in claim and was told to submit lawsuit filed against me. Verbally ins co said if LS says I did anything ''willful'' or an intentional act, they won't cover me. The claims are false, so don�t I get coverage to prove my position? In brief, my parents willfully transferred their 1/2 of my home to me. Their Quit Claim is being challenged after the fact. I filed a quiet title in self defense to protect myself, and my parents' crooked trustee filed a counter claim. In it, he alleges undue influence. In separate filing he alleges elder abuse, which never happened. Although the words ''willful and intentional'' don't appear anywhere in the LS, words that mean same thing do. I did this in good faith & gave parents a Note in exchange for their Quit Claim, so I had no willful act but to pay off a loan. The LS came out of left field. I need my ins. coverage, & am just about to send the trustee�s bogus LS, plus supporting docs, showing my parents did transfer with full intention. What can I say in cover letter to my ins co? So they will not brush me off & call my actions Willful and instead, give me fair consideration? I know this is critical how I handle it in the beginning. Please help.
3 Answers from Attorneys
Re: Personal Liability Insurance - How to Have LS Accepted for Coverage
It sounds as if your policy may not cover the defense of this suit as it is not based upon negligence. Call me directly at (619) 222-3504.
Re: Personal Liability Insurance - How to Have LS Accepted for Coverage
Typically, if there's any claim in a complaint that shows some kind of negligence, the insurance company is bound to defend you (but not necessarily indemnify you if a judgment is entered), but with a reservation of rights. That means, at least in California, that you and the insurance company have a potential conflict of interest. An insurance company would try to knock out the willful claims either on demurrer, summary judgment or telephone calls with plaintiff's counsel. A conversation typically would say, "Yeah, there's insurance money, but a reservation of rights means our client is on the hook and he/she is broke, so get rid of the fraud cause of action and leave negligence in. Then we can talk some more."
If an actual conflict between the insurance company and the insured were to arise, the insured would be entitled to hire his/her own attorney, and the insurance company usually is required to pay for the defense, with the insurance lawyer or adjuster monitoring the insured's defense (called "Cumis" counsel).
Hope that helps. You really should seek out competent -- rather than general -- legal advice since it seems like a very tangled web. Good luck!
Re: Personal Liability Insurance - How to Have LS Accepted for Coverage
Normally, even if you are sued for an intentional act, if a negligence claim exists in the complaint, you may be able to obtain coverage. You should have an attorney review your complaint and right a strong letter to the carrier.
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