Total Call International, Inc. v. Perless Insurance

—In the underlying action for breach of insurance contract and bad faith, appellant Total Call International, Inc. (TCI), asserted that respondent Peerless Insurance Company (Peerless) had improperly declined to defend TCI in litigation arising out of its advertising activities. The trial court sustained Peerless’s demurrer to TCI’s complaint without leave to amend. We affirm.

RELEVANT FACTUAL AND PROCEDURAL BACKGROUND

TCI’s complaint against Peerless, filed August 12, 2008, alleges the following facts: TCI provides telecommunication services and products, including prepaid domestic and international phone cards. The cards enable people, many of whom are immigrants, to make calls to their home countries. The prepaid phone card industry is competitive, and providers such as TCI operate on thin profit margins. Most providers rely on “point of sale” advertising, that is, billboards and posters at gas stations and other places where cards are sold that state the price of the provider’s card and amount of paid minutes. Because cost is the determinative factor for most consumers, they typically buy the least expensive card advertised on the billboards and posters.

TCI’s…