CD Investment Co. v. California Insurance Guarantee Ass'n

Opinion

MALLANO, J.

In prior litigation, a money judgment was entered against the plaintiffs in this action. To pay the judgment, plaintiffs looked to their insurers, two of which had become insolvent. With respect to those two, plaintiffs sought recovery from the California Insurance Guarantee Association (CIGA), which is required by statute to pay a “covered claim” on behalf of an insolvent insurer, up to a maximum of $500,000. CIGA refused to make any payments, and this action followed.

CIGA contends that there is no “covered claim” because the payments made by the solvent insurers ($1.5…