Legal Question in Insurance Law in California

My question has two parts. I have continuous real estate E&O insurance. I paid for E&O benefits coverage as an agent for my Broker in Sacramento. The policy retro date shows the insurance started in July 2004. It is a 'Claims Made' policy. Does the E&O cover me for anything I am sued about? (The claim was real estate related, and had something to do with improperly getting title recorded for a home in the suburbs. It was not a commission job, done personally.) I called the insurance company and they cover from defects to fraud, so it is pretty broad, but the person was in training and could not answer my question. My question here is that the matter was served on me personally, not on the Broker, so generally does real estate E&O cover separate acts? I didn't think they would cover me until now, when my brother told me they might since E&O might extend to what you do as an agent. Next, the suit was served in August 2004, I dealt with it, paid for it in the thousands, and eventually won. If there was coverage I would want help recovering the damages they would have provided me for the loss, because it would be $500k coming in that I can substantiate that I paid to defend the case, that I won. So, does E&O cover me for acts I do outside my Broker that have a real estate flavor? Also, how many years is the statute for making a claim for insurance coverage? Thank you.


Asked on 10/12/09, 6:32 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

If your call to the company is deemed notice of a claim againt you, and the company did not defend you, then you have, at most, four years after final conclusion of the case against you to sue the insurer. For bad faith denial of a defense it would be two years.

It is impossible to tell if there should have been a defense without looking at the lawsuit and the underlying material, and the policy in effect when the suit was served. But frequently there is an exclusion for acts done relating to personal investments or personal transactions. So it really depends on exactly what the transaction was and what the suit and policy provide. You should consider contacting a lawyer sooner rather than later.

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Answered on 10/12/09, 6:43 pm


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