Cal Law Trends and Developments

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Any discussion of California insurance decisions and developments in the past year must perforce start with the fall of 1966, since 1967 was the year in which the insurance industry was confronted with greatly expanded rules on the duty to defend, the duty to settle within limits and rising above all, like a Colossus sprung from the deep, the tortured decision of Pacific Employers Insurance Company v. Maryland Casualty Company, which threatened to convert policies written for totally different purposes into automobile liability policies at the drop of a hat and with nary a premium.

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