§17.11 - Known Loss Doctrine

• Jurisdiction: Washington

§17.11 Known loss Doctrine

The known loss doctrine, also referred to as the loss in progress doctrine, can trace its roots to the concept that insurance is intended to cover fortuitous events. Aluminum Co. of Am. v. Aetna Cas. & Sur. Co., 140 Wn.2d 517, 556, 998 P.2d 856 (2000). The known risk defense is premised on the principle that an insured cannot collect on an insurance claim for a loss that the insured subjectively knew would occur at the time the insurance was purchased. Pub. Util. Dist. No. 1 v. Intl Ins. Co., 124 Wn.2d 789, 805, 881 P.2d 1020 (1994). What the insured subjectively knew is typically a question of fact. Id. The extent of knowledge required varies somewhat between first-party property cases and third-party liability...