I have seen this several times recently almost making it quite common. They state they have the right to defend but not the duty.

They are writing contractor g/l in CA inlcuding residential I've been told

CA has just made a major change in rating personal auto coverage. ZIP Codes can no longer be a primary factor in rating calculations as I understand .

As to American Safety allowing an additional insured for "off premises" work, I have been told both yes and no on several different occasions. I have over 30 customers with American Safety, all who perform residential contruction in CA. As far as I know there has not been a court decision ...