More on The “Montrose” Exclusion
The only injury and damage eliminated from coverage by paragraph b.(3) of the new CGL insuring agreement is injury or damage known to have occurred before the policy period begins. But if that known injury or damage continues after the policy’s inception date, then, by the terms of the new insuring agreement, the ongoing injury or damage during the policy period becomes injury or damage known to have occurred before the policy
period begins, and is therefore excluded from coverage.
In Armstrong World Industries, Inc. v. Aetna Casualty & Surety Co. (1996) 45 Cal. App.4th 1 [52 Cal. Rptr. 2d 690], the appellate court held squarely that every insurer that issued a liability policy for any period during which a continuous loss occurred was liable for “the full extent of the loss up to the policy’s limits.”
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