Impact Of Century-National Insurance V. Jesus Garcia

Law360, New York (March 8, 2011, 1:12 PM EST) -- In a decision released Feb. 17, 2011, the California Supreme Court specifically adopted the “innocent insured” rule as applicable to the California standard form fire insurance policy. The court determined that the standard policy includes an implied exclusion for loss caused by the willful act of “the insured” and the exclusion bars coverage only for the insured who commits the intentional act.

The exclusion does not prejudice the coverage for other insureds under the policy who are innocent of the willful act. As a consequence, policies...
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