Insurance 101 – Chapter 9 – Volume 46 – The Duty to Reimburse the Insurer

The Duty to Reimburse the Insurer

In Progressive West Insurance Co. v. Superior Court (Preciado)
2005 DJDAR 14927, 135 Cal.App.4th 263, 37 Cal.Rptr.3d 434 (Cal.App. Dist.3 12/28/2005), the California Court of Appeal sustained a demurrer to a complaint by the insured. It found that although an insurance contract imposes on each party a duty of good faith and fair dealing, that neither party will do anything that will harm the right of the other to receive the benefits of the agreement, the duty of good faith includes protecting the rights of the insurer to obtain reimbursement by subrogation. The court further held that the parties are presumed to know all applicable  laws when an agreement is made.

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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