Florida
How Continental Insurance Co. v. C. A. G. Corporation applies in Florida: state-specific rules, key cases, and bar exam notes for Insurance Law.
Florida follows the principle that an insurance policy is a contract, and it must be interpreted according to its plain language unless the terms are ambiguous. The duties of the insurer to defend and indemnify are also strictly interpreted to protect insured parties.
In Florida, an insurer's duty to defend is broader than its duty to indemnify. If there is any potential coverage based on the allegations in the complaint, the insurer must provide a defense.
The court held that the insurer has a duty to defend any claim that is even potentially covered by the insurance policy.
The ruling asserted that ambiguities in the insurance contract must be resolved in favor of the insured.
The Florida Supreme Court reiterated that insurers must provide a defense when there is a possibility of coverage.
While many federal courts adopt a similar broad interpretation of the duty to defend, Florida courts specifically emphasize that any ambiguity in the terms of the policy resolves in favor of the insured. This distinct state approach can lead to differing outcomes compared to federal cases under similar circumstances.
Understanding the duty to defend versus the duty to indemnify is critical for the Florida bar exam, as it is a recurring topic in questions related to insurance law.