Insurer’s Reliance On Fungi Exclusion Creates Conflict Of Interest, Judge Says

Mealey's ( December 15, 2021, 12:16 PM EST) -- SACRAMENTO, Calif. — A California federal judge on Dec. 13 denied an insurer’s motion to dismiss its insureds’ claim requesting the appointment of independent counsel because a conflict of interest exists as the insurer relied on a fungi exclusion in reserving its right to deny coverage for an underlying suit arising out of water and mold damages....