Guilty Plea By Policyholder In Related Criminal Matter Does Not Automatically Bar Coverage Under Liability Policy For Civil Litigation Against Policyholder

摘要

The issue arises frequently. An insured commits an illegal offense and is subjected to the criminal justice system. In addition, the victim of the criminal offense institutes a civil action for damages against the insured. Because of the underlying criminal conduct, the civil complaint alleges that the insured committed acts of an intentional nature, as well as conduct that may be characterized as less than intentional, such as negligent or some other degree of culpability. The complaint is tendered to the insurer, who is now confronted with the question whether it is obligated to provide a defense to its insured.