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Montrose provision

Montrose provision refers to the provision in a general liability policy that restricts coverage for damage that occurs over multiple policy periods to those policies in which the insured was not aware of the occurrence at the inception of the policy period.

Additional Information


The term "Montrose provision" is derived from the 1995 California Supreme Court ruling—Montrose Chem. Corp. v. Admiral Ins. Co., 10 Cal. 4th 645, 42 Cal. Rptr. 2d 324, 913 P.2d 878 (1995)—that allowed recovery for damages even after the insured was aware of the loss, because the full extent of the loss was not yet known.

Synonyms

known loss provision

Related Terms