Business Law Insurance Law Committee

October - December 2024 APPELLATE LAW UPDATE The following published decision may be of interest to attorneys practicing insurance law: CALIFORNIA COURT OF APPEAL Insurance broker who helped the plaintiff simultaneously procure both a Farmer’s policy and a FAIR Plan policy was not the actual or ostensible agent of Farmer’s with respect to the FAIR Plan policy. Hughes v. Farmer’s Insurance Exchange (2024) 107 Cal.App.5th 73. Plaintiff obtained two insurance policies covering her home: a FAIR Plan policy covering fire… Read more

The following regulatory information may be of interest to attorneys practicing insurance law. Increased Enforcement of various provisions of Proposition 103 On Nov. 25, 2024, the CDI published Bulletin 2024-14 “Compliance with various provisions of Proposition 103” which addresses several issues that have arisen regarding insurer compliance with Proposition 103. The bulletin asserts that: An admitted property/casualty insurer remains responsible to charge the lowest premium for which the insured qualifies; the insurer cannot pass on this responsibility to its agents,… Read more

APPELLATE LAW UPDATE The following published decision may be of interest to attorneys practicing insurance law: CALIFORNIA COURT OF APPEAL Trial court properly dismissed coverage action against excess insurers where underlying policies had not exhausted. Fox Paine & Co. v. Twin City Fire Insurance Co. (2024) __ Cal.App.5th __. Various entities involved in a venture capital fund sued each other for breach of fiduciary duty and other claims.  The fund was covered by a $10 million private equity professional liability… Read more

The following published decisions may be of interest to attorneys practicing insurance law: CALIFORNIA SUPREME COURT The one-year contractual limitations provision governing claims “on the policy” does not apply to an Unfair Competition Claim seeking only injunctive relief.Roseberg-Wohl v. State Farm (2024) __ Cal.5th __. Plaintiff submitted a claim under her homeowners’ policy seeking reimbursement of expenses she incurred to fix a staircase that was unsafe due to “settl[ing].” The insurer denied the claim based on information provided by plaintiff,… Read more

The following regulatory information may be of interest to attorneys practicing insurance law. Rate Application Process On August 9, 2024, the CDI published a Bulletin titled “Revisions to Department Review of Complete Rate Applications” which sets forth the process the CDI will follow with respect to review of rate applications “once full implementation of a data reconciliation tool and process is achieved” that would streamline timeframes for rate review. 2024 Year End Notice On August 16, 2024, the CDI published… Read more

June - July 2024 The following published decisions may be of interest to attorneys practicing insurance law: UNITED STATES SUPREME COURT An insurer with financial responsibility for claims has standing to assert objections to an insured’s bankruptcy plan. Truck Insurance Exchange v. Kaiser Gypsum Co., Inc., et al. (2024) 602 U.S. __; 144 S.Ct. 1414. Kaiser Gypsum filed for Chapter 11 bankruptcy and sought to establish an asbestos bankruptcy trust to respond to its ongoing liability for asbestos claims.  Its… Read more

The undefined term “occurrence” in a property policy refers to the cause of the loss; a coordinated theft that occurs in multiple stages close in time and space constitutes a single “occurrence.”. Apex Solutions v. Falls Lake Insurance Management (2024) __ Cal.App.5th __. Read more

The following regulatory information may be of interest to attorneys practicing insurance law. This information is current as of March 19, 2024. Read more

A notice of cancellation of an auto policy must go to all insureds identified on the declarations page, not only the “named insureds.” Molinar v. 21st Century Insurance (2024) __ Cal.App.5th __. Read more

On January 30, 2023, the CDI issued Bulletin 2023-1 titled “Increase in Private Passenger Motor Vehicle Financial Responsibility Requirements -- Senate Bill 1107” reminding insurers writing automobile liability insurance to make rate filings by July 1, 2023 in order to update their rates to reflect the increase in minimum liability coverage to $30,000 effective January 1, 2025. Read more