California Union Insurance v. Central National Insurance

*731 Opinion

Appellants Central National Insurance Company of Omaha (Central) and California Union Insurance Company (Cal Union) appeal from orders of dismissal following the sustaining of demurrers to their complaints against respondent California Insurance Guarantee Association (CIGA).

CIGA is a compulsory association of insurers created by statute (Ins. Code, § 1063 et seq.) 1 whose purpose is to provide insurance against loss arising from the failure of an insolvent insurer to discharge its obligations under its insurance policies. (§§ 1063, subd. (a), 119.5; see Barger, California Insurance Guarantee Association (1970) 45 State Bar. J. 475, 482; Trunk v. Orr (1979) 94 Cal.App.3d 761, 763 [ 156 Cal.Rptr. 662 ].) The trial court .held that appellant insurers had stated no cause of action against CIGA.

Central, Cal Union, and Signal Insurance Company (Signal) all wrote policies of insurance against legal malpractice by a certain law firm (the insured). Central’s policy, on an “occurrence” basis, was for the policy years 10-1-69 to 10-1-71. Signal’s policy, on an occurrence basis, was for the policy years 10-1-71 to 10-1-73. Cal Union’s policy, on a “claims made” basis, was…