Archive for August, 2009

Bail Properly Forfeited Where Surety Failed To Demonstrate Defendant “Detained” Within Meaning of Penal Code Section 1305 (d)

In the unpublished case of County of Los Angeles v. Accredited Surety & Casualty Company, No. B209172 (August 31), Accredited appealed from a judgment forfeiting the bail it posted to secure the release from custody of a criminal defendant.  Accredited contended that the court lacked jurisdiction to declare bail forfeited.  It also argued that the [...]

August 31, 2009   Posted in: Blog  Comments Closed

State Farm Agent’s Claim To Franchise Relations Act Protections Dismissed As Being Not Founded On An Actual Controversy

In the unpublished case of Vice v. State Farm Mutual Automobile Insurance Company, No. C059920 (August 31), Roger Vice sought a declaration that his relationship with State Farm is that of franchisor-franchisee, entitling him to the protections of the California Franchise Investment Law (Corporations Code section 31000 et seq.) and the California Franchise Relations Act [...]

August 31, 2009   Posted in: Blog  Comments Closed

First Appellate District Finds No Duty to Defend Under Title Insurance Policies

First American Title Insurance Company v. XWarehouse Lending Corporation, No. A119931 (August 28), is a decision from Division Three of the First Appellate District affirming that First American had no duty to provide a defense because XWarehouse was not an “insured” within the meaning of the subject title policies.  XWarehouse was the victim of a [...]

August 31, 2009   Posted in: Blog  Comments Closed

Commissioner Seeks To Amend Low Cost Automobile Insurance Plan of Operations

On November 12, the Commissioner will hold a public hearing to consider proposed revisions to the Low Cost Automobile Insurance Plan of Operations.  The purpose of the revisions is to update the Plan of Operations to make it consistent with current rules and policies including currently-used application and change request forms and rejection procedures.

August 31, 2009   Posted in: Blog  Comments Closed

AB 1200 (Hayashi) Auto Repair Bill Blockaded On Senate Floor

AB 1200 (Hayashi), on which we reported in our August 10 blog post, seeks to protect insurers’ commercial free speech rights when interacting with claimants requiring automobile repairs.  Although we found the original bill inappropriately limited to protecting insurers’ rights to describe their own policy benefits — as opposed to providing any objective information about [...]

August 30, 2009   Posted in: Blog  Comments Closed

Commissioner Will Sue To Stop SCIF Assets Sale

The July California budget revision authorizes the State Department of Finance to sell or otherwise dispose of assets belonging to State Compensation Insurance Fund (SCIF) with the intent of raising $1 billion in general fund revenue.  Commissioner Poizner announced today he will sue to have that part of the revision held unconstitutional under Article XIV, [...]

August 27, 2009   Posted in: Blog  Comments Closed

Commissioner Schedules Hearing On WCIRB Filing Re Claims Cost Benchmark and Advisory Pure Premium Rates

The Commissioner has scheduled a hearing for October 6 in San Francisco on the latest Workers’ Compensation Insurance Rating Bureau (WCIRB) filing to consider its proposed Claims Cost Benchmark and advisory pure premium rates.  The hearing will also consider amendments to the Uniform Statistical Reporting Plan, the Miscellaneous Regulations for the Recording and Reporting of [...]

August 27, 2009   Posted in: Blog  Comments Closed

When Statute Providing Basis for WC Vocational Rehabilitation Benefits Repealed, Claimant No Longer Entitled to Benefits That Had Not Vested

In Beverly Hilton Hotel, et al v. Workers’ Compensation Appeals Board (WCAB), No. B21205 (August 26), Division Five of the Second Appellate District annulled a WCAB decision holding that an injured security officer/supervisor at the Beverly Hilton Hotel was entitled to vocational rehabilitation benefits under Labor Code Section 139.5.  The ruling was based on the [...]

August 26, 2009   Posted in: Blog  Comments Closed

California Supreme Court Holds Made-Whole Doctrine Does Not Include Liability for Attorneys Fees

In 21st Century Insurance Company v. Superior Court (Quintana), No. S154790 (August 24), the Supreme Court considered whether the made-whole doctrine includes liability for all the attorneys fees an insured must pay in order to obtain medical payment compensation from a third-party tortfeasor.  Silvia Quintana was injured in an automobile accident with a third party.  [...]

August 24, 2009   Posted in: Blog  Comments Closed

Ineffective Cancellation and Insurance Code Priority Rules Dictate Progressive On Risk for Primary Defense and Indemnity Duties

In the unpublished case of Williamsburg National Insurance Company v. Progressive Casualty Insurance Company, No. D053194 (August 21), Division One of the Fourth Appellate District resolved a coverage dispute between two carriers as to coverage under their separate commercial auto liability policies.  Progressive declined to defend the underlying lawsuit on the ground that its insured [...]

August 21, 2009   Posted in: Blog  Comments Closed

Labor Code Section 3861 Credit Properly Claimed Against Liability for Future WC Benefits

In Baur v. Workers’ Compensation Appeals Board (WCAB) and City of Stockton, No. C061042 (August 21), the Third Appellate District reviewed a WCAB decision affirming that the employer of an injured police officer was entitled to a credit, up to the amount of a net settlement, against the City’s liability for future workers’ compensation benefits [...]

August 21, 2009   Posted in: Blog  Comments Closed

AB 470 (Niello) Signed Into Law And Chaptered

AB 470 (Niello), on which we last reported in our July 2 blog post, was approved by the Governor on August 5 and chaptered the next day.  The new legislation aims at speeding up the resolution of insurance claims by giving insureds’ lawyers the same direct access to accident reports insureds themselves have.

August 21, 2009   Posted in: Blog  Comments Closed

Truck And Driver Making Delivery For Another Company Not Covered Under That Company’s Commercial Auto Policy Insuring Hired Vehicles

In the unpublished case of  Keller v. Argonaut Insurance Company, No. B212083 (August 20), Division Six of the Second Appellate District upheld a summary judgment granted Argonaut on the basis that its commercial auto policy insuring Scotts Corporation did not cover the liability of a truck owned by Carpio Transportation and its driver incurred while [...]

August 20, 2009   Posted in: Blog  Comments Closed

Ninth Circuit Invalidates California Law Allowing Heirs of Armenians Killed in Ottoman Empire to Seek Life Insurance Proceeds

In Movesian, et al v. Victoria Versicherung AG, et al, No. 07-67722 (August 20), the Ninth Circuit, reversing a District Court ruling,  invalidated California Code of Civil Procedure Section 354.4, which extends the statute of limitations until 2010 for claims arising out of life insurance policies issued to “Armenian Genocide victim[s]” as impermissibly interfering with [...]

August 20, 2009   Posted in: Blog  Comments Closed

Second Appellate District Reissues Opinion Strongly Affirming Administrative Regulations May Provide UCL “Safe Harbor”

In our April 20 blog post, we mentioned Yabsley v. Cingular Wireless (2008) 81 Cal. Rptr. 903, 906, fn. 3, where Division Six of the Second Appellate District strongly disagreed with Krumme v. Mercury Insurance Company (2004) 123 Cal. App. 4th 924 to the extent that it held that administrative regulations cannot provide a UCL [...]

August 19, 2009   Posted in: Blog  Comments Closed

Pacific Specialty Prevails On Summary Judgment With Misrepresentation Defense To Property Insurance Claim

Shokrian v. Pacific Specialty Insurance Company, No. B208274 (August 17), is an unpublished decision from Division Four of the Second Appellate District upholding an insurer’s misrepresentation defense to a property insurance claim.  The case provides valuable instruction on the proper application of the Supreme Court’s teaching in Thompson v. Occidental Life Insurance Co. (1973) 9 [...]

August 17, 2009   Posted in: Blog  Comments Closed

Commissioner Reacts to Latest WCIRB Request to Hike Claims Cost Benchmark

As we reported in our July 8 blog post, the Workers’ Compensation Insurance Rating Bureau’s (WCIRB) request to increase the Claims Cost Benchmark by 23.7 percent was rejected last month.  The WCIRB has now submitted a new request for a 22.8 percent increase.  Commissioner Poizner received it skeptically, pointing to the same array of what [...]

August 12, 2009   Posted in: Blog  Comments Closed

Limited Auto Repair Free Speech Bill Appears Headed To Passage

In our March 27 and June 9 blog posts, we discussed AB 802 (Duvall), which aimed at preserving insurers’ free speech rights with respect to automobile insurance direct repair programs.  AB 1200 (Hayashi) subsequently became the vehicle for the same concept.  In its current form, it specifies, by amendment to Insurance Code Section 758.5 at [...]

August 10, 2009   Posted in: Blog  Comments Closed

Commissioner Fines Conseco Senior Health Insurance $500,000 for Improper Claims-Handling

Commissioner Poizner has announced a $500,000 settlement agreement with Conseco Senior Health Insurance Company over unfair claims-handling practices in the long-term care market.  Conseco is also required to reimburse mishandled claims retroactively to 2004.

August 8, 2009   Posted in: Blog  Comments Closed

Commissioner Proposes Array of Assigned Risk Revisions

On September 22, the Commissioner will hold a public hearing in San Francisco to address a portfolio of changes to the California Automobile Assigned Risk Plan (CAARP).  The changes include forms amendments in response to revisions introduced by the Insurance Services Office (ISO) to the Commercial Auto Coverage Parts Program (CACP) and related rating rules,  [...]

August 8, 2009   Posted in: Blog  Comments Closed

Contractors Warranty Endorsement Upheld In Equitable Contribution Action

North American Capacity Insurance Company v. Claremont Liability Insurance Company, No. B207878 (August 4; ordered published September 2), is an opinion from Division Eight of the Second Appellate District upholding a trial court’s decision on an equitable contribution claim between two insurers after the settlement of an underlying action against their mutual insured, the general [...]

August 4, 2009   Posted in: Blog  Comments Closed

Commissioner Releases Another Revision of Pay-Drive (Usage-Based) Auto Insurance Regulations

Commissioner Poizner has released a “second proposed amended” version of the Pay-Drive (Usage-Based) Automobile Insurance Regulations we discussed in our June 25 blog post.  The latest revisions include in the permissible sources of odometer readings the Department of Motor Vehicles and any other governmental agencies that maintain such readings, licensed smog check stations, employees of [...]

August 4, 2009   Posted in: Blog  Comments Closed

Insurance Policy Covering Bodily Injury Resulting From “Accident” Does Not Create Defense Obligation When Insured Acted Under the Unreasonable Belief Of Having To Defend Himself

In the long-awaited Delgado v. Interinsurance Exchange, No. S155129 (August 3), the California Supreme Court, reversing the Court of Appeal, has held that an insured acting under the unreasonable belief of having to defend himself is not entitled to a defense of an action brought by an injured third party for assault and battery.  The [...]

August 3, 2009   Posted in: Blog  Comments Closed

Fourth Appellate District Reverses $10 Million Punitive Judgment Found To Be Rooted in Alleged Oral Promise That Was Never Pled

In a remarkable opinion worth reading for both its acerbic tone and analytical depth, Division Three of the Fourth Appellate District has reversed a $10 million punitive damages judgment against its liability insurer awarded Griffin Dewatering Corporation, which had constructed for the South Coast Water District an allegedly faulty sewer bypass, which, in turn, led [...]

August 2, 2009   Posted in: Blog  Comments Closed