Century Indemnity Co. v. Bank of America
Opinion
Opinion
Poche, J.
Plaintiffs Century Indemnity Company and Pacific Employers Insurance Company appeal from an order staying on the basis of forum non conveniens their action for declaratory relief brought against defendant Bank of America, FSB. (Code Civ. Proc., § 904.1, subd. (a)(3).)
Background
Bank of America, FSB is a federal savings bank with its principal place of business in Portland, Oregon. In 1991 it acquired Honfed Bank, a federal savings bank with its principal place of business in Honolulu, Hawaii. During the mid-1980’s Honfed had allegedly marketed tax deferred annuities to its depositors on representations that the annuities were federally insured. The issuer of the annuities became insolvent, and Bank of America, FSB as the successor-in-interest to Honfed was sued by the Hawaii insurance commissioner and by the Hawaii Life and Disability Insurance Guaranty Association.
In September 1995 Bank of America, FSB tendered defense of the insurance commissioner’s action to Century and Pacific under various insurance policies written by them. The insurers disclaimed coverage as to all but two of the policies with a reservation of rights.