What does Montrose Provision mean? Read on to discover the definition & meaning of the term Montrose Provision - to help you better understand the language used in insurance policies.
A type of known loss provision, a Montrose provision in a liability policy 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. 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.
We hope the you have a better understanding of the meaning of Montrose Provision.