Insurance 101 – Chapter 5 – Volume 22 – Potentiality


In the leading case of Gray v. Zurich Ins. Co.,30 the Supreme Court of California set the basic rule followed in most jurisdictions for deciding whether an insurer owes a duty to defend or not. It found that insurers issuing dual-promise policies (a promise to both defend and indemnify) are required to defend any suit in which there is a potentiality that the insurer will have to indemnify.

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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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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