UCL Case Against Calif. Insurer May Fuel Bad-Faith Suits

Law360, San Diego (April 19, 2013, 10:59 PM EDT) -- The California Supreme Court will soon hear a case involving California Capitol Insurance Co. over whether policyholders can use the state's Unfair Competition Law to accuse insurers of false advertising, and lawyers say a ruling allowing these claims would open the floodgates to bad-faith suits against carriers and put pressure on them to settle more cases.

The state's top court is set to hold oral arguments May 8 in Yanting Zhang's suit alleging California Capitol refused to authorize adequate payment under her policy after a fire at her place of business and engaged in unfair, deceptive and misleading advertising in violation...

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