Benchmark Insurance Co. v. Sparks

OPINION

By the Court,

Parraguirre, J.:

In this appeal, we consider whether an automobile liability insurer effectively limited its duty to defend its policyholder in a tort lawsuit brought against the policyholder. Specifically, we are asked to decide whether a provision in Benchmark Insurance Company’s standard-form insurance policy unambiguously alerted the policyholder, Robert Sparks, that Benchmark could terminate its duty to defend him by depositing the policy’s liability limits with the district court. Concluding that the policy provision at issue is ambiguous, we construe it in accordance…