PARKWOODS COMMUNITY ASSOCIATION v. CALIFORNIA INSURANCE GUARANTEE ASSOCIATION
Where developer and contractor were jointly and severally liable to homeowners association for all construction defects for which subcontractors--whose insurer became insolvent--were responsible. Suit against developer and contractor was resolved by a settlement in which those defendants paid homeowners association an amount that exhausted their primary commercial general liability coverage. Which included a contribution from their excess insurance carrier that did not exhaust the excess insurance limits. The coverage provided by the unexhausted excess coverage policy was available to satisfy homeowners association's claim. So there was no covered claim within meaning of statute obligating California Insurance Guarantee Association to pay such claims.
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