California Insurance Code Debated in LA Talent Agency’s Lawsuit

A Markel Group Inc. unit can’t deny insurance coverage to United Talent Agency LLC under a California insurance code provision that bars payment for losses caused by willful acts of the policyholder, the Beverly Hills agency told a federal appeals court.

Section 533 of the state’s insurance code acts as a statutory exclusion, generally barring indemnification for losses caused by a policyholder’s willful acts.

Courts have ruled it doesn’t preclude an insurer’s obligation to defend policyholders if claims are potentially covered.

But at a Tuesday oral argument before the US Court of Appeals for the Ninth Circuit, Markel American Insurance ...