Insurance Law

AlexanderIII
Thu, 30 Jul 2015 15:00:15 +0000

it’s the way lawyers read the contracts that matter, not the way sales agents do.

I’m guessing, based on this statement, that you don’t actually practice coverage or bad faith defense. There is a world of difference between people who sell insurance policies and people who underwrite those policies or work as claims adjusters. I spent many years working at a firm with a large coverage and bad faith practice group (over 30 attorneys), and 100% of my practice was in those fields. When hiring new associates, we absolutely considered it a plus if an applicant had underwriting or claims handling experience.

Most published decisions on coverage or bad faith involve cases where the court has to look beyond the plain language of the policy to determine whether the policy was ever intended to cover the type of claim in question. Any policy form used in California must be preapproved by the DOI, and when an insurer submits a proposed form for approval, that form is accompanied by volumes of underwriting material discussing exactly what the policy language is and is not intended to cover. Those documents are very relevant in declaratory relief actions concerning coverage, and I never had a problem getting those materials admitted into evidence at trial or on a summary judgment motion.