CA AB3040

Adds Section 11558 to the California Insurance Code to codify existing caselaw regarding the definition of "suit" and "lawsuit" in liability insurance policies

Expands the definition of "suit" or "lawsuit" to include regulatory enforcement actions, orders, directives, mandates, and requirements by federal, state, and local environmental agencies requiring insured parties to take action regarding contamination

Specifies that covered environmental agencies include the EPA, California Environmental Protection Agency, State Water Resources Control Board, Regional Water Quality Control Boards, Department of Toxic Substances Control, and county environmental health departments

Includes formal judicial proceedings and administrative proceedings in the definition, encompassing voluntary agreements, consent decrees, and consent orders that resolve or could lead to administrative adjudication

Provides that these definitions do not apply if their application contradicts the intent of the parties to the liability insurance policy