CGL ruling saves insurers billions. (California Supreme Court decision on the suit against Industrial Indemnity Co. for commercial general liability coverage of advertising injury claims)

National Underwriter Property & Casualty-Risk & Benefits Management, August, 1992 by Haggerty, Alfred G.

The California Supreme Court has reversed a lower court decision which had insurers facing billions of dollars in claims for securities and bank fraud, antitrust activities and patent infringement. The high court ruled that the commercial general liability policy covers claims for advertising injury only under certain, narrow circumstances.

In the earlier ruling against Industrial Indemnity Co. of San Francisco, the Court of Appeal expanded the definition of unfair competition to include unfair business practices committed against the general public. Michael Mathews, coverage counsel for Industrial Indemnity, said the earlier decision "was hoped to be a panacea for everyone's ills, including the savings and loan bailout. The glittering possibility appears...

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