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insured exclusion,” noting that because each of the plaintiffs had previously served on Sunrise’s board of directors, each was an “Insured” as defined in the policy.Sunrise and Weinstein sued Scottsdale Insurance in federal court, asserting claims for breach of the insurance policy and breach of the duty to defend, as well as breach of the covenant of good faith and fair dealing.The liability adjuster must be knowledgeable about the fact that many liability claims are part of fraudulent schemes that are used by the unscrupulous to profit from fake accidents and injuries.A thorough investigation of a claim must cover the duty the adjuster owes to the insured and the insurer.
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Sunrise promptly notified Scottsdale Insurance of the suit and demanded a defense and indemnification under the policy.
Scottsdale denied coverage, invoking the policy’s “insured vs.
Liability insurance policies invariably exclude defense or indemnity of one insured sued by another insured of the same policy.
The reason is obvious, the potential for collusion and fraud are high. 16-16856, United States Court Of Appeals For The Ninth Circuit, (December 27, 2017) the insureds, Sunrise Specialty Company, Inc.