Whittaker Corp. v. Allianz Underwriters, Inc.

Plaintiff and respondent Whittaker Corporation (Whittaker) brought this insurance bad faith action against Whittaker’s two commercial umbrella liability insurance carriers, defendants and appellants Allianz Underwriters, Inc. (Allianz) and Transcontinental Insurance Company, Inc. (Transcontinental). The question of insurance coverage within a particular policy period was bifurcated and tried by the superior court upon an agreed statement of facts.

The trial court rendered judgment for $410,000 in favor of the insured, Whittaker, against the insurers, Allianz and Transcontinental, concluding that all of the claims made by Whittaker’s customers were covered under the policies issued by Allianz and Transcontinental for Whittaker’s 1983 fiscal year. The insurers contend the trial court erred, and that certain claims must be allocated to policies issued for later fiscal years.

Since the issue involves interpretation of written insurance policies as applied to agreed facts, the question is one of law for this court, unbound by the trial court’s determination. (State Farm Mut. Auto. Ins. Co. v. Longden (1987) 197 Cal.App.3d 226, 230-231 [ 242 Cal.Rptr. 726 ].) We…