Insurance 101 – Chapter 4 – Volume 47 – More on The “Montrose” Exclusion

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.”

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

 

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