Case Study: Zhang V. Superior Court

Law360, New York (February 15, 2011, 4:33 PM ET) -- California courts have traditionally not allowed claims against insurance companies for allegedly unfair claims settlement practices, even when policyholders brought those claims pursuant to the state’s Unfair Competition Law (“UCL”). However, this may soon change.

In an apparent response to a recent split of authority, the California Supreme Court is considering whether, in a coverage action, an insured can maintain a claim under the UCL based on the insurer’s representations and advertising that it would promptly and properly pay covered claims when it allegedly had no...
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