Gorham Co. v. First Financial Insurance
Opinion
Opinion
Willhite, J.
When an insured who has financed the purchase of an insurance policy through a lender defaults, and the lender notifies the insurer under Insurance Code section 673, subdivision (d), that it is exercising the insured’s right to cancel the policy, must the insurer notify additional named insureds of the cancellation? In these circumstances, we hold that neither section 673 nor section 677.2 requires the insurer to provide notice of cancellation to an additional named insured.
PROCEDURAL AND FACTUAL BACKGROUND
Cross-complainant The Gorham Company, Inc. (Gorham), appeals from the summary judgment granted in favor of cross-defendant First Financial Insurance Company (First Financial) on Gorham’s first amended cross-complaint. Gorham also challenges the denial of its own motion for summary adjudication. The issues in this appeal arise from Gorham’s contention that First Financial, the insurer of one of Gorham’s subcontractors on a construction project for which Gorham was the general contractor, had a duty to defend Gorham when it was sued for construction defects allegedly caused by the subcontractor’s negligent work. We affirm the judgment.