Continental Casualty Co. v. Pacific Indemnity Co.

Plaintiff appeals from a judgment of the superior court granting defendant’s motion for summary judgment. We reverse and remand the cause with directions.

The present case is a dispute between two insurance carriers over their respective liability for settlement of a malpractice case. The insured was covered by three policies. One policy, issued by plaintiff, provided “primary” coverage for professional liability with a limit of $100,000. The second policy, also issued by plaintiff, provided “umbrella excess” coverage for professional liability with a limit of $500,000. The pertinent provisions of the second policy read as follows:

The third policy, issued by defendant, provided coverage for professional liability with a policy limit of $500,000. The pertinent provision of the third policy read as follows: “If other valid and collectible insurance or reinsurance is available to the insured covering a loss covered by this policy .. ., this insurance shall be deemed excess insurance over and above the applicable limits of all such other valid and collectible insurance or reinsurance.”

When the underlying action was brought against the insured, plaintiff offered to…