Central National Insurance v. California Insurance Guarantee

Appellant and cross-complainant, The Central National Insurance Company of Omaha (Central National) appeals the sustaining of a demurrer without leave to amend pursuant to California Code of Civil Procedure section 430.10, subdivision (e) in favor of respondent and cross-defendant, California Insurance Guarantee Association (CIGA). A partial dismissal was then granted. We affirm.

Appellant, "together with Signal Insurance Company (Signal) and various other insurers, issued certain insurance policies naming Leonard M. Ross and Rossco Inc. as insured parties. Subsequently, more than 23 lawsuits, some still pending, were filed by various parties against Ross.

Appellant entered into a settlement agreement as to some of the lawsuits (Goodrich v. Marlin actions) for $1.5 million. Signal had become insolvent and appellant requested CIGA to contribute the excess over the aggregate policy limit to the settlement pool. CIGA refused and appellant paid the agreed upon $1.5 million. Central National also assumed the defense in another group of Ross actions {Willow Ridge actions). American Home Assurance Company, who had provided the defense in a different group of actions, filed a…