NO NEGLIGENCE FOR NONINSURED

The California Court of Appeal has affirmed a ruling that a person not covered by an insurance policy cannot sue the insurer for alleged negligence for delaying payment to the person who is insured. The ruling in Adelman v. Associated International Insurance Co. involved 20 owners of condominium units who sued Associated for an alleged delay in paying a claim to a condo association for damage from the 1994 Northridge earthquake. The overall complex was insured by Associated but the individual unit owners were not. The appellate court invited the National Association of Independent Insurers (NAII) to submit a friend-of-the-court brief on the case, and in its June 29, 2001 ruling, agreed with the reasoning in that brief.