Mealey's California Insurance : Mealey's : Legal News & Analysis

Mealey's California Insurance

July 14, 2025
9th Circuit Affirms Dismissal Of Driver’s Claim For Larger COVID-19 Refunds

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals affirmed the dismissal of a driver’s class action against her insurer, GEICO, for violating California’s unfair competition law (UCL) by providing drivers an insufficient rebate on premiums after the COVID-19 pandemic, finding that the insurer was protected by the “‘safe harbor’” doctrine as the state insurance commissioner approved its rebate amounts.
July 11, 2025
Contractor’s Insurer Must Defend Developers For Water, Other Damages

LOS ANGELES — A contractor’s commercial general liability insurer agreed to defend the developers of a residential development as additional insureds, and the homeowners’ subsequent filing of an action alleging that the contractor’s improper installation of concrete flatwork and foundation systems caused water intrusion and other damage to their homes triggered the insurer’s duty to defend, a federal judge in California ruled.
July 10, 2025
Order Vacated, Case Dismissed In LTD Benefits Row Involving COVID Risk

SAN FRANCISCO — After vacating an August 2024 order and judgment that were in favor of a pediatrician who sought long-term disability (LTD) benefits based on her high risk of exposure to COVID-19, a California federal judge dismissed the case with prejudice pursuant to the parties’ stipulation.
July 09, 2025
California Federal Magistrate Rules Claimant Eligible For 2 Years Of LTD Benefits

SAN FRANCISCO — In a decision that involved weighing the opinions of numerous doctors, a California federal magistrate judge ruled that a claimant who held a “demanding managerial” role before saying that anxiety, depression and atypical autism made her unable to work is entitled to long-term disability (LTD) benefits “for the two-year mental disorder benefit period” and is eligible to seek attorney fees.
July 09, 2025
Claims Against Long-Term Care Insurer Fail But Insured Permitted To Amend Complaint

FRESNO, Calif. — A California federal judge granted a long-term care insurer’s motion to dismiss breach of contract, bad faith and financial elder abuse claims without prejudice after determining that the insured failed to specifically show how the long-term care insurer breached its contract when it denied the insured’s claim for benefits under the policy.
July 09, 2025
Auto Insurer Failed To Show Handling Of UIM Claim Was Reasonable, Judge Says

SAN DIEGO — A California federal judge refused to dismiss an insured’s bad faith claim against an auto insurer after determining that the insurer failed to show that it acted reasonably in handling the insured’s claim for underinsured motorist (UIM) benefits.
July 08, 2025
California Panel Affirms Exclusions Bar Coverage For Subcontractor’s Faulty Work

LOS ANGELES — Rejecting arguments by a developer and general contractor that a trial court erred by denying them a jury trial and by construing two faulty workmanship exclusions in a subcontractor’s businessowners insurance policy too narrowly, a California appellate court panel affirmed the trial court’s judgment in favor of the insurer in the developer and contractor’s suit to recover more than $1 million in damages and delay costs.
July 07, 2025
Judge Grants Contractors’ Demurrer As To 2 Claims In Hurricane Hilary Coverage Suit

LOS ANGELES — A California judge granted contractors’ demurrer as to insureds’ negligent and concealment claims in a coverage dispute arising from Hurricane Hilary damage, agreeing with the contractors that because the contractors were hired by the insurer to inspect the insureds’ roof, neither of them owed a duty to the insureds.
July 03, 2025
California Federal Judge Sanctions Lawyer For AI-Faked Cites In Disability Case

SANTA ANA, Calif. — A California federal judge imposed sanctions including a $500 payment on a plaintiff’s attorney who told the court that he “failed to scrutinize and oversee the preparation of” memoranda “filed with erroneous case citations that were invented by AI”; the breach of contract suit over termination of total disability benefits is headed toward a jury trial after the judge last month granted summary judgment for the insurer on a bad faith claim.
July 01, 2025
California Appellate Court Lets Rehab Plan For Workers’ Comp Insurer Stand

SAN FRANCISCO — In an unpublished opinion, the First District California Court of Appeal upheld a nonconsensual rehabilitation plan for a workers’ compensation insurance carrier; the plan was approved as part of conservation proceedings brought by California’s insurance regulator and includes options to resolve dozens of reinsurance participation agreement (RPA) lawsuits.
July 01, 2025
Insurer Says It Owed No Duty To Defend Water Contamination Suits

LOS ANGELES — An insurer maintains in opposition to an insured’s motion for judgment on the pleadings that it owed no duty to defend the insured against two water contamination complaints filed by the Los Angeles Regional Water Quality Control Board because the complaints only sought to impose penalties against the insured and did not seek damages as required by the policy.
June 30, 2025
California Insureds Allege Insurers Underinsured Homes Destroyed In Wildfires

LOS ANGELES — In two separate complaints filed in Los Angeles County Superior Court, insureds whose homes were destroyed in the January wildfires allege that their homeowners insurers underinsured their homes, leaving the homeowners unable to rebuild their destroyed homes.
June 27, 2025
California Judge Denies Insured’s Motion For Summary Adjudication As To UCL Claim

LOS ANGELES — A California judge granted an insured’s motion for summary adjudication as to his declaratory relief claim in a lawsuit alleging that the California Fair Plan Association (CFP) issued property insurance policies with fire coverage that is unlawfully restrictive as to smoke damage claims but denied the insured’s motion as to his unfair competition law (UCL) claim, finding that he failed to satisfy his burden to establish standing to bring the UCL claim.
June 27, 2025
Breach Of Contract, Bad Faith Claims To Proceed Against Life Insurer, Judge Says

FRESNO, Calif. — A life insurer’s filing of a third-party interpleader complaint does not absolve it of liability for a beneficiary’s breach of contract and bad faith claims based on the life insurer’s delay in handling the beneficiary’s claim after the insured’s death, a California federal judge said in partially denying the life insurer’s motion for summary judgment.
June 26, 2025
California Federal Judge Gives Disability Insurers Win In Breach, Bad Faith Row

LOS ANGELES — Granting summary judgment for insurers in an individual disability insurance (IDI) dispute, a California federal judge ruled in part that insurers were prejudiced by late notice of the claim.
June 26, 2025
Insurer Was Not Contractually Bound To Provide COVID-19 Premium Relief, Judge Says

SAN DIEGO — A California federal judge on June 25 granted an auto insurer’s motion for summary judgment on a claim alleging that the insurer breached the implied covenant of good faith and fair dealing by not sufficiently refunding policyholders a percentage of premium payments made during the COVID-19 pandemic because the insurer was not contractually bound to refund any premiums under its auto policies.
June 25, 2025
In ‘Close Call’ Case, Judge Rules For LTD Claimant In Any-Occupation Dispute

SACRAMENTO, Calif. — In a decision he described as “a very close call,” a California federal judge ruled on de novo review that a claimant was disabled from any occupation under the terms of a long-term disability (LTD) plan; among other things, the judge resolved opposed requests for judicial notice and explained his findings that the opinions of several doctors should be given little to no weight but the claimant’s “reports of pain are entitled to some weight.”
June 25, 2025
Judge: Housing Developer Didn’t Prove Insurer Waived Consent To Claims Procedures

SAN FRANCISCO — A federal judge in California denied a housing developer’s motion for partial summary judgment in its case against its excess insurer for breach of contract after homeowners reported construction defects, finding that the developer didn’t provide sufficient evidence that the insurer waived its right to consent to mediation proceedings the developer conducted with the homeowners.
June 24, 2025
Judge: D&O Coverage Restored By Dilution Claims Exception To Policy Exclusion

SAN DIEGO — A federal judge in California on June 23 held that a business and management indemnity insurer has a duty to defend and indemnify its insured against an underlying unfair dilution lawsuit because the “dilution claims exception” to the “insured vs. insured” exclusion restores directors and officers liability coverage, granting the insured’s motion for summary judgment and denying the insurer’s motion for judgment on the pleadings.
June 19, 2025
Insureds’ Breach Of Contract, Bad Faith Suit Remanded To California State Court

FRESNO, Calif. — A breach of contract and bad faith suit filed against a homeowners insurer must be remanded to state court because the insurer failed to meet its burden of proving by a preponderance of the evidence that the amount in controversy exceeds the federal jurisdictional minimum, a California federal judge said, noting that the insurer specifically failed to provide a reasonable estimate of the amount of attorney fees that could potentially be awarded to the insureds.
June 18, 2025
Auto Insurer Did Not Act In Bad Faith, Judge Says In Granting Summary Judgment

FRESNO, Calif. — A bad faith suit filed against an auto insurer cannot proceed because there is no evidence from which a jury could conclude that the insurer acted in bad faith in failing to settle an assignee’s claim for injuries, a California federal judge said in granting the auto insurer’s motion for summary judgment.
June 18, 2025
Stay Granted, Trial Vacated In Captive Insurance Dispute After Settlement Offer

LOS ANGELES — A California federal judge stayed litigation and vacated a forthcoming trial date to allow time for the United States to respond to and prepare acceptance of a written offer submitted by the executive of a purported captive insurance company that the United States says would resolve all claims and counterclaims brought forth in the litigation.
June 16, 2025
Insurer Says Pollution Exclusion Bars Coverage For Silica Dust Exposure Suits

LOS ANGELES — No coverage is owed for underlying bodily injury suits filed against an insured stemming from silica dust exposure from the insured’s products because the suits are barred by the pollution exclusion contained in primary and excess policies issued to the insured, an insurer maintains in its motion for summary judgment filed in California federal court.
June 13, 2025
Calif. Panel Affirms $200K Judgment Against Life Policy Beneficiary In Fraud Row

LOS ANGELES — A California appellate court on June 12 affirmed a lower court judgment awarding a decedent’s son $35,000 for elder abuse and the decedent’s estate $165,000 for unjust enrichment against the woman the son sued alleging fraud in her making herself a beneficiary under the decedent’s $200,000 life insurance policy, finding no need for the jury to consider whether the beneficiary change was related to fraud because the damages finding in a jury question addressed the fraud presumption.
June 13, 2025
Claimant With Long COVID To Challenge LTD Benefit Denial In 9th Circuit

SAN DIEGO — A claimant who unsuccessfully sought long-term disability (LTD) benefits due to symptoms he attributed to long COVID and cardiac issues is taking his case to the Ninth Circuit U.S. Court of Appeals after a California federal judge upheld denial of his claim on de novo review.