High Court Rejects Exhaustion Requirement in Actions Against Excess Carriers

The California Supreme Court rejected a strict exhaustion requirement as a prerequisite for insureds to bring claims against excess carriers. "We conclude that an insured may state a viable cause of action for declaratory relief regarding coverage and liability under an excess insurance policy even if all the underlying insurance coverage has not yet been exhausted," the high court said in Fox Paine & Company LLC et al. v. Twin City Fire Insurance Co. et al. "While insureds in this position must adequately plead their covered losses, the relevant principles governing the av...