Insurer Sits Back But Pays Later.

Two insurance companies were tendered claims by the same insured.  One stepped up to the plate and provided a defense; the other declined the tender and merely monitored the suit.  After the case was settled, the settling insurer sued the monitoring insurer for equitable contribution.  The trial court allocated a 60/40 split between the insurance companies to the advantage of the settling insurer.  The appellate court affirmed, noting the settling insurer did “not have to prove actual coverage” under the monitoring insurer’s policy, but “just the potential of coverage.”  Axis Surplus Insurance Company v. Glencoe Insurance Ltd.  (Cal. App. Fourth Dist., Div. 1;  April 11, 2012) 204 Cal.App.4th 1214, [139 Cal.Rptr.3d 578].