The California Supreme Court Pumps the Brakes on Carrier Refunds

Last week, the California Supreme Court denied a petition and depublication request by California’s insurance commissioner and consumer organizations in a case entitled State Farm General Insurance Company v. Lara. The repercussions of this decision are potentially huge for carriers. (Read More)

California Enacts Sweeping Amendments to the Insurance Code

Assembly Bill 1511 was recently enacted in California. The omnibus bill, which is a consolidation of multiple legislative efforts, amends, among other things, certain provisions of the California Insurance Code relating to (1) notices of renewal or nonrenewal concerning residential property insurance policies, (2) insurer investments, (3) claims against insurers, (4) the Insurance Commissioner’s authority in enjoining persons who violate the Insurance Code, (5) the Insurance Adjuster Act, and (5) the State Compensation Insurance Fund.

By way of this alert, Michelman & Robinson, LLP provides an overview of the law that goes into effect on January 1, 2022. (Read More)

California Court Upholds Insurance Commissioner’s Order to Expand FAIR Plan Coverage

In an effort to better protect homeowners, insurance coverage has been expanded and limits increased under the California FAIR Plan – the state’s insurer of “last resort.” Such was the mandate as set forth in California Insurance Commissioner Ricardo Lara’s 2019 Order No. 2019-2, which has just been upheld by the Superior Court of California for the County of Los Angeles. (Read More)

California Department of Insurance to Hold Public Discussion on Mitigation in Rating Plans and Wildfire Risk Models

The California Department of Insurance has invited the public to participate in a pre-notice discussion regarding a contemplated addition to the California Code of Regulations (“CCR”) dealing with mitigation in rating plans and wildfire risk models. The web-based virtual event will be held on March 30, 2021 at 1:00 pm (PST). (Read More)

California Insurance Commissioner Issues Bulletin Notifying Insurers of Moratorium on Wildfire-Related Cancellations and Non-Renewals

Early last year, California enacted Senate Bill 824 (codified as section 675.1(b)(1) of the California Insurance Code), which serves to prohibit insurers from canceling or non-renewing policies of residential property insurance placed on homes located in certain ZIP codes for a year after the declaration of a state of emergency related to a California wildfire. The statutory provision also requires the California Insurance Commissioner to issue a bulletin informing insurers of the ZIP codes subject to the moratorium. (Read More)

California Looks to Pass Legislation Concerning Business Interruption Coverage Due to COVID-19

The California State Senate has just amended Assembly Bill 1552 to create certain rebuttable presumptions having to do with COVID-19-related business interruption claims and disputes. In its original form, the legislation was written to adopt or revise a model curriculum in Native American studies, which is certainly a far cry from insurance regulation. In any event, Michelman & Robinson explains what it could mean for insurers if this bill, as amended, is passed and signed into law. (Read More)

CDI Announces New Order Regarding Workers' Compensation Premium Savings for CA Businesses Affected by COVID-19

Last week, the California Department of Insurance issued a press release announcing an order issued by Commissioner Ricardo Lara mandating that premiums for worker’s compensation coverage reflect the reduction in risk attributable to the state’s COVID-19-related stay-at-home mandates. By way of this alert, Michelman & Robinson addresses questions carriers may have about the order. (Read More)

Nevada Division of Insurance to Disallow Policy Exclusions Related to COVID-19

The Nevada Division of Insurance (“NVDOI”) issued an important notice last week to all property and casualty insurers doing business in the state. Pursuant to the notice, the NVDOI will temporarily disallow the issuance of new business interruption policies—and those providing related coverage—if they contain exclusions specifically mentioning COVID-19, viruses, or pandemics. Michelman & Robinson answers some of the questions insurers and policyholders in Nevada may have about the notice. (Read More)

California Modifies the Tolling of Statutes of Limitations in Civil Cases

Most lawsuits must be filed within a prescribed period of time, and the deadline for initiating a civil action is known as the statute of limitations. While the statute of limitations varies depending upon the type of claim contemplated in any given matter, as a rule, if it “runs out” prior to the filing of a complaint, the case is no longer valid. (Read More)

House Introduces Pandemic Risk Insurance Act of 2020 in the Wake of COVID-19 Business Interruption Claims

Legislation known as the Pandemic Risk Insurance Act of 2020 (the PRIA), which was introduced in the U.S. House of Representatives this week, aims to create a reinsurance program in response to the growing COVID-19 crisis and in anticipation of future pandemics and their effects on the insurance industry and broader economy. Similar in scope and with language comparable to the Terrorism Risk Insurance Act of 2002 (TRIA) that was passed after 9/11, the PRIA, if signed into law, would cap the total pandemic-related insurance losses that carriers might face going forward. Michelman & Robinson explains. (Read More)