Court Puts Burden on Recalcitrant Insurer to Prove Absence of Coverage

LOS ANGELES - A California appellate court has held that once an insurer makes a prima facie showing that another insurer should share coverage of a mutual insured, the burden is on the second insurer to disprove coverage. Arrowood Indemnity Co. v. Travelers Indemnity Company of Conn., No. B219491 (Calif. Ct. App., 2nd Dist. Div. 4).

The Court of Appeal, Second Appellate District said in a published opinion on Oct. 6 that the issue of which insurer bears the burden of proof is one of first impression in California.

Arrowood Indemnity Co. (as successor to Royal Surplus Lines Insurance Co.) …