Allied Premier Ins. v. United Fin. Cas. Co. (May 12, 2021) No. S267746
A commercial truck driver bought insurance from United Financial, which issued a DMV certificate of insurance in addition to the policy. The driver then switched his insurance to Allied, which in turn issued an insurance policy and a certificate of insurance. Because the driver did not renew with United Financial, his policy lapsed, but United Financial failed to cancel the certificate. The driver then caused a fatal accident and was sued for wrongful death. Allied paid to settle the claim and filed a contribution action against United Financial, arguing that—due to the uncancelled certificate—United Financial’s policy remained in effect and that it must share the cost of the wrongful death settlement.
A federal district court granted summary judgment to Allied. United Financial argued on appeal that a certificate of insurance, standing alone, provides no coverage. Because the outcome turns on an interpretation of California statutory schemes, the Ninth Circuit certified to the California Supreme Court the question whether a commercial automobile insurance policy continues in effect until the insurer cancels the corresponding DMV certificate of insurance, regardless of the insurance policy’s expiration date.
The California Supreme Court has accepted review and will now receive briefing and render an opinion.
Note: Horvitz & Levy LLP represents United Financial in the California Supreme Court.
