California Justices Question Yahoo Insurer’s Coverage Denial (1)

California Supreme Court justices on Tuesday questioned an insurance company’s rationale for denying coverage to Yahoo! Inc., as the company fends off class actions arising from alleged Telephone Consumer Protection Act violations.

National Union Fire Insurance Co. of Pittsburgh, Pa., declined coverage, concluding the legacy internet company’s policies didn’t cover allegations it had sent unsolicited spam text messages, even though the parties had negotiated separate coverage for advertising and for personal injuries.

Yahoo argues National Union’s promise and policy to defend claims alleging personal injury should be read according to their plain ordinary meaning, and that the website’s coverage ...