In State of California v. Continental Insurance Company, the California Supreme Court ruled that in a case of continuing loss, all insurers have a duty to indemnify up to their policy limits if any of the property damage occurred during the policy period. Specifically, the Court reasoned that under the “all sums” language contained in the policies, “the grant of coverage does not limit the policies’ promise to pay ‘all sums’ of the policyholder’s liability solely to sums or damage ‘during the policy period.’” The Court further seized on the arguments made by the State in noting that “the ‘during the policy period’ language does not appear in the ‘Insuring Agreement’ section of the policy and therefore is neither ‘logically nor grammatically related to the ‘all sums’ language in the insuring agreement.’” >> Click to Read More
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