Safeco Surplus Lines Co. v. Employer's Reinsurance Corp.

This action for declaratory relief between two insurers involves errors and omissions insurance policies that provide coverage for claims made upon the insured. We must decide whether a claim is “made” upon an insured when a claim letter is dated by the claimant, as asserted by plaintiff Safeco Surplus Lines Company (Safeco), or when the letter is received by the insured, as maintained by defendant Employer’s Reinsurance Corporation (ERC). Like the trial court, we find that a claim is not “made” until it has been received; therefore, we affirm the trial court’s grant of summary judgment for ERC.

Factual and Procedural Background

Safeco and ERC issued successive claims-made errors and omissions policies to the insured, McGee & Thielen Insurance Brokers, Inc. (McGee), a California corporation. ERC’s policy was in effect from November 23, 1985, to November 1, 1989; Safeco’s policy took effect on November 1, 1989. Safeco’s policy provides that its coverage is excess over any other valid and collectible insurance available to McGee.

McGee acted as insurance broker for Nacht & Lewis Architects, Inc. (Nacht), one of the firms involved in the design and construction of the…