Montrose doctrine
A legal principle, enunciated by the California Supreme Court in
Montrose
Chem. Corp. v. Admiral Ins. Co., 10 Cal. 4th 645, 42 Cal. Rptr. 2d 324, 913 P.2d 878 (1995), holding that injury
or damage for which an insured may incur liability is not a "known loss"—hence
uninsurable under basic precepts of insurance law—until liability for the injury
or damage has been assessed by a court. As a result of
Montrose, standard general
liability policies now exclude liability from any injury or damage known to
the insured at the time the policy takes effect. See
Montrose provision.
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