Balboa Insurance Company offers property and casualty insurance services. It also offers mortgage lender-placed services. The company was founded in 1948 and is based in Irvine, California. As of June 1, 2011, Balboa Insurance Company operates as a subsidiary of QBE Insurance Group Ltd.
3349 Michelson Drive
Irvine, CA 92612
Founded in 1948
Daniel Demarco Not Entitled to Indemnification for Entire Amount Paid to Defend and Settle Suit
Jan 27 14
Daniel DeMarco sued ACE American Insurance Co. and Balboa Insurance Co. alleging those insurers owed him $150,000, the amount he paid to defend and settle a suit brought against him relating to the sale of his home. DeMarco's action was based upon insurance policies issued by a predecessor insurer, Atlantic Mutual Insurance Co., which became insolvent during the trial court proceedings. DeMarco alleged ACE and Balboa assumed liability for his policies and were also his insurers. Balboa and ACE moved for summary judgment on several bases, including that DeMarco's policies provided no coverage and no duty to defend DeMarco in the underlying suit. The trial court granted summary judgment in favor of both insurers. As for Balboa, the court held that although Balboa assumed liability for DeMarco's policy, there was never any duty to defend or indemnify under the policy. The appeals court affirmed in part, reversed in part and remanded for determination of damages. In so ruling, the appeals court agreed with the trial court that DeMarco's insurance did not provide coverage for the losses claimed in the suit against DeMarco. Since DeMarco's defense was provided under a reservation of rights, the insurers' right to contest coverage remained enforceable. Because the suit's claims were outside the scope ofhis coverage, DeMarco was not entitled to reimbursement for the entire $150,000 he paid to settle the litigation. Here, however, the appeals court found that despite its doubts about coverage, the original insurer, Atlantic, agreed to fund DeMarco's defense and contribute $10,000 to the settlement and that agreement could not be retroactively revoked. While ACE was never DeMarco's insurer, the record showed Balboa assumed liability for some of Atlantic's policies, including DeMarco's. Hence, the appeals court concluded Balboa must reimburse DeMarco for the amount he paid to his defense lawyers to settle a past-due invoice and for the promised settlement contribution. In addition, DeMarco was owed reimbursement for the amounts he paid to litigate and appeal his insurers' breach of the duty to defend action.