Housing Group v. California Insurance Guarantee Ass'n

The Housing Group is a small housing developer in Orange County. In the period 1983 through 1984 it had a primary comprehensive general liability policy with Central Mutual Insurance Company. The Central Mutual primary policy had no “products” exclusion. During the same period, The Housing Group also had an umbrella policy with Mission National Insurance Company, which listed the Central Mutual policy in its schedule of “underlying” insurance. Mission’s umbrella policy did have a products exclusion.

The umbrella policy also had a “broad as primary” endorsement which provided: “In the event that the insured suffers a loss which is covered under the policies of underlying insurance set out in the schedule attached to this policy, the excess of which would be payable under this policy except for terms and conditions of this policy which are not consistent with the underlying insurance, then notwithstanding anything in this policy to the contrary, this policy is amended to follow and be subject to the terms and conditions of such underlying insurance in respect of such loss.”

The Housing Group was sued in September 1990 for various causes of action arising out of the…