CBS Broadcasting Inc. v. FIRMMAN'S FUND INS. COMPANY

J.The issue in this appeal is the applicable statute of limitations for an action on an insurance policy issued by Fireman’s Fund Insurance Company (Fireman’s) to indemnify CBS Broadcasting Inc. (CBS). CBS claims that it incurred extra production costs on a television series due to the inability of one of its stars to work because of illness. The outcome on appeal depends on whether the policy at issue is one for disability insurance. If it is, the three-year limitations period of Insurance Code section 10350.11 controls. (All statutory references are to the Insurance Code unless otherwise indicated.) If it is not, the one-year limitations provision of the policy controls, and the trial court properly awarded summary judgment to Fireman’s on the basis of this defense. We conclude that the policy is not a disability policy. We find no basis for reversal in CBS’s other arguments, and affirm the ensuing judgment.

Factual and Procedural Summary

Fireman’s issued a policy of insurance to CBS. The coverage period was March 19, 1993, to March 19, 1996. The policy covered certain television series produced by CBS, including Dr. Quinn, Medicine Woman {Dr. Quinn). Section I of the…