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Mealey's California Insurance

  • October 23, 2025

    Judge Affirms Dismissal Of Hospital Operator’s Suit Against Insurer For ER Fees

    LOS ANGELES — A California appellate panel affirmed the dismissal of several hospitals’ lawsuit against an insurer for violation of California’s unfair competition law (UCL) in relation to its alleged failure to pay reasonable reimbursement to the hospitals, which are out-of-network, for emergency room services provided to its insureds, finding that the claims were premised on a hypothetical duty that does not exist in the state Insurance Code.

  • October 23, 2025

    Construction Company Sues Insurer For Denying Coverage Based On Wrong Exclusion

    LOS ANGELES — A construction company sued its insurer and insurance broker in California state court, arguing that the insurer breached its contract by not defending it in an underlying complaint against the company alleging construction defects in the building of five houses; the company argues that the insurer wrongly denied coverage based on a condominium construction exception.

  • October 21, 2025

    Insurer: No Connection Between Subcontractor’s Work, Company’s Liability

    SANTA ANA, Calif. — A subcontractor’s insurer says that a federal court in California should grant its motion to dismiss a construction company’s third amended complaint (TAC) against it alleging that it wrongly denied the coverage for claims brought against the company by a builder for damages the company alleges were caused by using the subcontractor’s drawings for the project, arguing the company provides no connection between the subcontractor’s work and the company’s liability.

  • October 21, 2025

    Insurers Voluntarily Dismiss Silica Coverage Suit After Home Depot Withdraws Tender

    LOS ANGELES — Two insurers filed a notice of voluntary dismissal in California federal court after Home Depot U.S.A. Inc. withdrew its request for coverage for underlying bodily injury lawsuits seeking damages as a result of silica exposure from countertops manufactured by an insured and sold and marketed by Home Depot.

  • October 17, 2025

    Bad Faith, Financial Elder Abuse Claims Again Dismissed Without Prejudice

    FRESNO, Calif. — A California federal judge granted a long-term care insurer’s motion to dismiss bad faith and financial elder abuse claims without prejudice after determining that the insured failed to specifically show how the insurer breached its contract when it denied the insured’s claim for benefits under the policy.

  • October 17, 2025

    Partly Revived COVID Risk Disability Case Is Dismissed Per Joint Stipulation

    FRESNO, Calif. — A disability case in which the Ninth Circuit U.S. Court of Appeals revived a breach of contract claim has been dismissed with prejudice by a California federal magistrate judge pursuant to a joint stipulation; an oral surgeon filed the suit after unsuccessfully seeking disability benefits on the grounds that his comorbid conditions and inability to access recommended personal protective equipment (PPE) made it necessary to close his practice early in the COVID-19 pandemic.

  • October 15, 2025

    California ‘Insurer Of Last Resort’ Sued For Alleged Wrongful Denial Of Claim

    LOS ANGELES — A homeowner whose property is covered by the California FAIR Plan sued the insurance pool in state court, alleging that the state’s “insurer of last resort” unlawfully denied coverage for fire, smoke and contamination damage in violation of California insurance law after his home was damaged in the Eaton Fire.

  • October 15, 2025

    High Court Won’t Hear Life Insurance Beneficiary’s Certifying Questions Appeal

    WASHINGTON, D.C. — The U.S. Supreme Court on Oct. 14 denied a petition for a writ of certiorari filed by a life insurance policy beneficiary who brought a putative class complaint against the insurer and presented to the high court two questions regarding certifying state law issues to state high courts.

  • October 13, 2025

    Newsom Signs FAIR Plan Legislation For State ‘Insurer Of Last Resort’

    SACRAMENTO, Calif. — California Gov. Gavin Newsom signed California Assembly Bill 234, California FAIR Plan Association Governing Committee, a bill sponsored by Democratic Assembly Member Lisa Calderon, who stated that the bill “increases transparency of the FAIR Plan by requiring the Speaker of the Assembly and the Chairperson of the Senate Committee on Rules (or a designee) to serve as members” of the committee and “ensures the public has a seat at the table.”

  • October 10, 2025

    Judge Finds No Coverage After Insurer, Construction Worker Rescind Policy

    LOS ANGELES — A federal judge in California granted an insurer’s motion for summary judgment on its complaint seeking a declaration that an insurance policy it issued to a construction worker had been rescinded and, therefore, that it did not need to provide indemnity for any sums for which the construction worker could be found liable to a property owner whose property was damaged allegedly due to the construction worker’s faulty work; the judge found that the worker and insurance company had mutually rescinded the policy.

  • October 09, 2025

    California Panel Affirms Ruling In Insurer’s Favor In Suit Arising From Assault

    SAN DIEGO — A California appeals panel affirmed a lower court’s judgment in favor of a homeowners insurer in its declaratory relief lawsuit disputing coverage for an underlying judgment against its insured, concluding that the insured’s conduct was not the result of an “accident” and, therefore, the underlying damages did not arise from a covered “occurrence” under the policy.

  • October 08, 2025

    Disability Case Involving Brain Injury Is Remanded For Vocational Analysis

    SAN FRANCISCO — On de novo review of a case challenging termination of long-term disability (LTD) benefits under an any-occupation standard, a California federal magistrate judge found that “the medical evidence does not establish that Plaintiff is unable to enter the workforce” but that vocational evidence is needed to determine whether the claimant is disabled under the plan terms.

  • October 07, 2025

    Professional Negligence Suit Against Broker Is Untimely, California Panel Affirms

    LOS ANGELES — A California appeals panel on Oct. 6 determined that a lower court properly determined that a professional negligence lawsuit against an insurance broker is time-barred because the action was filed more than two years after the professional negligence cause of action accrued and the plaintiff has failed to plead any facts supporting his argument that the lower court should have applied equitable tolling principles.

  • October 02, 2025

    California Insurance Commissioner Issues Bulletin On Fire-Related Cancellation

    SACRAMENTO, Calif. — California Insurance Commissioner Ricardo Lara issued a bulletin requiring insurance companies not to cancel or refuse to renew residential property insurance for properties located in a specified ZIP code within or adjacent to a fire perimeter for one year after the state of emergency that was issued by Gov. Gavin Newsom on Sept. 19 related to the TCU Lightning Complex Fires near Chinese Camp, Calif.

  • October 01, 2025

    Judge: Misappropriation Of Funds Exclusion Bars Professional Liability Coverage

    FRESNO, Calif. — A federal judge in California granted a professional liability insurer’s motion for summary judgment in an insured’s breach of contract and bad faith lawsuit seeking coverage for underlying claims alleging that the insured conducted a negligent background check on a client’s potential employee, ruling that the policy exclusion for “misappropriation of funds” unambiguously bars coverage.

  • September 29, 2025

    Judge Finds Policy Exclusion Preempts Duty To Defend Property Damage Suit

    RIVERSIDE, Calif. — A federal judge in California granted a commercial general liability insurer’s motion to dismiss a subcontractor’s claims against it, finding that a policy exclusion preempted the insurer’s duty to defend a cross-claim in an underlying dispute over property damage during a construction project.

  • September 23, 2025

    Insurer Answers Bad Faith Complaint In California Storm Damage Coverage Suit

    LOS ANGELES — Following a California court’s ruling that overruled its demurrer to an insured’s claim for breach of the implied covenant of good faith and fair dealing and denied its motion to strike all references to punitive damages, an insurer filed its answer to the insured’s first amended complaint in a coverage dispute over storm damage.

  • September 23, 2025

    Magistrate Judge OKs Attorney Fees In Case Where She Ordered LTD Claim Remanded

    SAN FRANCISCO — Saying in part that the balance of the considerations outlined in Hummell v. S.E. Rykoff & Co. supports the request, a California federal magistrate judge granted the requested $139,770 in attorney fees and costs in a long-term disability (LTD) case where she previously concluded “that the plan did not follow the administrative rules or apply the correct plan definition” and remanded “without ordering reinstatement of the policy or an award of retroactive payments.”

  • September 17, 2025

    Parties Reach Settlement To Resolve All Remaining Claims In Reinsurance Dispute

    SACRAMENTO, Calif. — The two remaining parties in a suit involving reinsurance and related agreements notified a California federal court that they have reached a final settlement, resolving all outstanding claims and providing for the distribution of funds held by the court.

  • September 16, 2025

    Insurers Fail To Settle Equitable Contribution Suit Over Unlawful Recording Claims

    SAN DIEGO — A federal court in California on Sept. 15 reported that following an early neutral evaluation conference, a cyber liability insurer and a defendant insurer did not reach a settlement of the cyber liability insurer’s lawsuit seeking equitable contribution and indemnification for an underlying lawsuit alleging that their mutual insured intentionally failed to disclose that hidden cameras were installed in operating rooms and recorded patient procedures in an effort to investigate drug theft.

  • September 16, 2025

    Countertop Manufacturer Seeks Coverage For Underlying Silica Bodily Injury Suits

    LOS ANGELES — An insured manufacturer and distributor of countertops and countertop products filed suit in California state court, claiming that its insurers breached their contracts of insurance and acted in bad faith in relying on their policies’ pollution and silica exclusions to deny coverage for underlying silica-exposure bodily injury suits in which the insured is named as a defendant.

  • September 15, 2025

    Judge Denies Dismissal Of Water Incursion Coverage Suit

    RIVERSIDE, Calif. — A federal judge in California denied an insurer’s motion to dismiss a general contractor’s complaint against it for breach of contract for denying the contractor’s claims for coverage and defense in homeowners’ underlying suit against it after their home incurred water intrusion, finding that the damage occurred within the policy period and that no exclusions precluded coverage.

  • September 15, 2025

    Insurers Settle Dispute Stemming From Hot Tub Injury Suit Filed Against Insured

    SAN JOSE, Calif. — A California federal judge entered an order of conditional dismissal in a dispute between two insurers over whether coverage is owed to a mutual insured for an underlying hot tub injury lawsuit after the insurers reached a settlement.

  • September 10, 2025

    California ‘Insurer Of Last Resort’ Sued For Allegedly Mishandling Fire Claim

    LOS ANGELES — A homeowner whose property is covered by the California Fair Plan Association (CFPA) sued the insurance pool in state court, alleging that the state’s “insurer of last resort” failed to adequately investigate and assess damage and issue payment after her home was damaged in the Palisades Fire.

  • September 10, 2025

    Panel Affirms $7.9M Judgment Against Retail Chain For ‘Credit’ Insurance Sales

    LOS ANGELES — A California appellate panel on Sept. 9 affirmed a trial court’s entry of a more than $7.9 million judgment, comprising civil penalties for more than 318,000 violations of California’s unfair competition law (UCL), against a retail chain and its CEO for improper sales of “credit property insurance” policies on which only 2.7% of the profits were paid out as benefits.