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Appellate Court Holds One-Action Rule Does Not Apply to Prelitigation Settlement
In Moody v. Bedford (2012), the Second Appellate District held that the one-action rule (Code of Civ. Proc. § 377.60) does not apply to an insurer’s p... more >

Agents' Persistency Discount Initiative Qualifies for Ballot
This week California Secretary of State Debra Bowen announced that an initiative sponsored by the American Agents Alliance has submitted enough valid ... more >

DWC Answers Questions Relating to "First Fills"
The Division of Workers Compensation put out a communication this week saying that “Pharmacy fees incurred by non-contracted pharmacies, prior to noti... more >

California Supreme Court Rules on Whether a Product Manufacturer is Liable for Injuries Caused by Adjacent Products
On Thursday, January 12, 2012, the California Supreme Court rendered a favorable decision in O’Neil v. Crane Co. ... more >

Consumer Watchdog Initiative's Cleared for Signature Gathering
This week, the California Attorney General's Office cleared the Consumer Watchdog's two rate regulation initiatives for signature gathering. ... more >

CDI Appoints John Finston as Deputy Commissioner
Insurance Commissioner Dave Jones announced on January 5, the appointment of John Finston as Deputy Commissioner for Corporate and Regulatory Affairs.... more >

Supreme Court Directs Appellate Court to Re-Examine the Issue of Wheather Insurer Claims Adjusters are Exempt Employees
In Harris v. Superior Court of Los Angeles County (2011), the California Supreme Court vacated the Second District Court of Appeal’s ruling that insur... more >

Appellate Court Rules on Emergency Response Fees
In Esteban Allende v. Department of the California Highway Patrol (2011), the First Appellate District reversed the trial court’s judgment to declare ... more >

DIR Reduces Policy Assessment Rates for Fiscal Year 2011-12
The Department of Industrial Relations (DIR) recently announced the new assessment rates for self-insured employers and workers’ compensation policies... more >

WCIRB Appoints New President
According to the Workers’ Compensation Rating Bureau, the Governing Committee of the Workers' Compensation Insurance Rating Bureau has named William J... more >

Tverberg v. Fillner Construction, Inc.
On November 16th, 2011, the California Supreme Court remanded Tverberg v. Fillner to the First Appellate District with directions to vacate its decisi... more >

Consumer Watchdog Files Initiative
This week, Consumer Watchdog filed initiatives with the Attorney General for title and summary and titled the “Insurance Rate Public Justification and... more >

Appellate Court Rules on Gratuitous Medical Services
In Sanchez v. Strickland (2011), the Fifth Appellate District concluded the following rule: “Where a medical provider has (1) rendered medical service... more >

Commissioner Approves Insurance Claims Cost Benchmark
Last Friday, Commissioner Dave Jones announced that he had approved the Workers' Compensation Insurance Claims Cost Benchmark. ... more >

Howell v. Hamilton Meats & Provisions
On September 6th, Howell filed a petition for a rehearing. ... more >

Principally At-Fault Advisory Notice
The principally at-fault (PAF) regulation is effective on December 11, 2011. ... more >

Court Denies Petition in Ogilvie Case
This week the California Supreme Court denied the City and County of San Francisco’s petition to review the case. ... more >

Commissioner Announces Staff Changes at CDI
Insurance Commissioner Dave Jones has announced several staff changes at the California Department of Insurance (CDI). ... more >

Court Rejects Rehearing in Baker Case
The Supreme Court denied a petition to reconsider its decision in Baker v. WCAB yesterday. ... more >

Appellate Court Rules on Right of Insurer to Intervene
In Western Heritage Ins. v. Superior Court (2011), the Second Appellate District reversed the trial court’s order limiting Western Heritage to only co... more >

Final Legislative Wrap-Up
The first year of 2011-12 legislative session is now over and we are pleased to bring you the final weekly wrap-up. ... more >

Appellate Court Rules on Sufficiency of Pleading Allegations in Toxic Tort Case
In Jones v. ConocoPhillips (2011), the Second Appellate District reversed the trial court’s decision to sustain the defendants’ demurrers based on the... more >

The FAIR Group Files Lawsuit to Challenge California's Newly Drawn Senate Districts
On September 15, 2011, the Fairness and Accountability in Redistricting (FAIR) group legally challenged the constitutionality of the newly drawn Senat... more >

Petition for Review Filed In Ogilvie Case
The City and County of San Francisco has filed a petition for review with the California Supreme Court in the case of Ogilvie v. WCAB. ... more >

ACIC Discusses Collision Repair Industry Concerns with the DOI
On September 8, 2011, ACIC met with the Department of Insurance (DOI) to review concerns being voiced to the DOI by trade groups representing the auto... more >

Appellate Court Affirms Constitutionality of the Medical Injury Compensation Reform Act of 1975 (MICRA)
In Stinnett v. Tam (2011), the Fifth Appellate District affirmed the trial court’s ruling that the Medical Injury Compensation Reform Act of 1975 (MIC... more >

California's Judicial Commission Unanimously Confirms Goodwin Liu as Associate Justice of the California Supreme Court
On August 31, 2011, Chief Justice Tani Cantil-Sakauye, Attorney General Kamala Harris, and Joan Dempsey-Klein, California’s senior appeals court justi... more >

Appellate Court Rules on a Pair of Coverage Exclusion Cases on Behalf of Insurers
In Aroa Marketing v. Hartford Insurance (2011), the Second Appellate District affirmed the trial court’s decision to sustain a demurrer filed by Hartf... more >

California Supreme Court Rules on Delegation of Liability in Alleged Violations of Cal-OSHA Safety Regulations
In SeaBright v. US Airways (2011), the primary question before the California Supreme Court was“whether the hirer can be liable to the contractor’s em... more >

Supreme Court Rejects Almaraz Petition
The California Supreme Court rejected the State Compensation Insurance Fund's (SCIF) request to review the Almaraz decision. ... more >

California Supreme Court Holds Damages Should be Based on Actual Paid Amounts not Billed Charges (Howell v. Hamilton Meats & Provisions Inc.)
On August 18, 2011, the California Supreme Court handed down a highly anticipated ruling regarding the proper measure of medical damages in personal i... more >

Republicans Plan to Challenge State Senate Redistricting Maps
Just as the state’s independent Redistricting Panel approved the final new legislative and congressional district maps two groups are raising concerns... more >

Attorney General Prepares Title and Summary for "2012 Automobile Insurance Discount Act"
On August 11, 2011, the Attorney General’s Office released the summary for the “Automobile Insurance Discount Act” (also known as “Persistency Discoun... more >

California Supreme Court Issues Ruling in Workers' Comp COLA Case
The California Supreme Court issued an opinion yesterday in Baker v. Workers' Compensation Appeals Board and X.S. ... more >

Court Hands Down Opinion in the Ogilvie Case
On July 29, 2011, the 1st District Court of Appeal handed down its decision in Ogilvie v. WCAB/City and County of SF v. WCAB reversing the en banc dec... more >

Redistricting Panel Braces Itself for Anticipated Legal Challenges
Last week, the California Citizen’s Redistricting Commission (CCRC) decided not to publish the second drafts of their proposed maps. ... more >

Appellate Court Rules on a Pair of Duty to Defend Cases on Behalf of Insurers
In State Farm v. Patrick Frake (2011), the Second Appellate Court concluded that State Farm had no duty to defend its insured, Patrick Frake, from a ... more >

WCAB Grants Reconsideration in Valdez Case
The Workers' Compensation Appeals Board (WCAB) issued a new, one-page decision granting reconsideration of its prior en banc decision in Valdez v. War... more >

New Director of DWC Appointed
Governor Brown announced the appointment of the new administrative director for the Division of Workers' Compensation. ... more >

Governor Signs Budget Trailer Bill Creating Fire Fee in State Responsibility Areas
On July 8th, Gov. Brown signed ABX1 29, the budget trailer measure that will require “inhabitable” property owners in the State Responsibility Area (S... more >

Governor Appoints Ken Pimlott as Director of CAL FIRE
Ken Pimlott was appointed this week as the director of the California Department of Forestry and Fire Protection. ... more >

Commissioner Announces Grants to Fight Workers' Comp Fraud
Commissioner Dave Jones has announced $32 million in grants to District Attorneys across the state to assist them with the investigation and prosecuti... more >

Appellate Court Affirms Summary Judgment for Insurer on Cumis Counsel Fee Dispute
In Behnke v. State Farm General Insurance Company (2011), the Fourth Appellate Court affirmed a summary judgment in favor of State Farm on a breach of... more >

Supreme Court Reverses Appellate Court in Negligent Hiring Case
In a unanimous opinion the California Supreme Court has reversed the Second District Court of Appeal in Diaz v. Carcamo and held that where an employe... more >

Governor Brown Signs Budget Relying on California's Improving Economy
On June 28th, Governor Brown signed California’s budget two weeks after vetoing the initial budget proposal sent by the legislature. ... more >

Trailer Bill to Establish Fire Protection Fee Pending
As part of the first budget proposal, the legislature also passed ABX1 29, a trailer bill proposing to establish a fire protection fee. ... more >

Controller John Chiang Docks Legislator's Pay in Light of Governor's Veto of the Budget Bill
Last year, California approved the “On-Time Budget Act of 2010” (Proposition 25) initiative, which required forfeiture of legislators’ salaries and pe... more >

California Citizens Redistricting Commission Set to Release Revised Redistricting Map Proposals on July 7th
On June 10, the California Citizens Redistricting Commission (CCRC) released its first redistricting map proposals. ... more >

Appellate Court Holds Insurance Code Section 758.8 (Requiring Automobile to be Repaired at Specific Dealer) Does Not Expressly Bar an Unfair Competition Cause of Action
In Hughes v. Progressive Direct Insurance Company (2011), the Second Appellate Court reversed the trial court’s order to dismiss appellant’s case, and... more >

Governor Jerry Brown Vetoes Legislature's Budget Proposal
On June 15th, the California Legislature submitted a timely budget to Governor Brown for his signature. ... more >

Appellate Court Considers Apportionment of Liability between Primary and Excess Carriers in Continuing Injury Claims
In Kaiser Cement and Gypsum Corporation v. Insurance Company of the State of Pennsylvania (2011), the Second Appellate Court reversed the trial court’... more >

Legislature Passes Trailer bills to Establish Fire Protection Fee
As part of the budget proposal, the Legislature also passed several trailer bills, one of which proposes to establish a fire protection fee (ABX1 29).... more >

ACIC Meets with California BAR to Discuss Glass Repair Issue
On June 7, 2011 ACIC met with the California Bureau of Automotive Repair (BAR) to discuss the “glass repair” issue in California. ... more >

ACIC Files Declaratory Relief Against the DOI's Proposed Homeowner's Underwriting Regulations
On June 8th, 2011, ACIC filed a lawsuit to challenge the Department of Insurance’s (DOI) proposed homeowner’s underwriting regulations. ... more >

California's Critical Budget Deadline of June 15, 2011 Approaches
The California Constitution requires that a budget must be passed by midnight on June 15th, a deadline that has generally been ignored over the years.... more >

California Citizens Redistricting Commission Set to Release Draft of its First Redistricting Map Proposals on June 10, 2011
On November 2008, California voters approved the Voters First Act (Proposition 11), which created the California Citizens Redistricting Commission (CC... more >

LAO Recommends Legislature Reject DOI's May Revision Request
In the revised budget released this month by the Governor, the Department of Insurance (DOI) requested $748,000 in special funds to fund eight existin... more >

California Supreme Court Hears Oral Arguments on the Proper Measure of Medical Damages (Howell v. Hamilton Meats & Provisions)
On May 24, 2011, the California Supreme Court heard oral arguments on Howell v. Hamilton Meats & Provisions. ... more >

Armand Feliciano Joins ACIC as Vice President
This week, the Association of California Insurance Companies (ACIC) named Armand Feliciano as Vice President Feliciano joins ACIC with 17 years of leg... more >

CIGA Reduces Annual Assessment
The California Insurance Guarantee Association (CIGA) Board of Directors recently approved an annual assessment on employer workers' compensation prem... more >

Appellate Court Renders Decision on Fraudulent Presentation of Multiple Claims for the Same Loss or Injury
In People v. Butler, a case of first impression, the Second Appellate Court held that Penal Code Section 550, subdivision (a)(2), also applies to the ... more >

Pure Premium Informational Analysis to be discussed at Governing Committee Meeting
This week, the Workers’ Compensation Insurance Rating Bureau (Bureau) issued a news wire giving an update on the informational pure premium analysis t... more >

Reinsurance Intermediary-Broker Not Subject to Fiduciary Duty Liability
In Workmen's Auto Insurance Co. v. Guy Carpenter & Co., Inc, the Second District Court of Appeal held that an insurance broker cannot be sued for brea... more >

Supreme Court Sets Hearing in Collateral Source Rule Case
The California Supreme Court has scheduled oral argument for May 24, 2011 at 9:00 a.m. in San Francisco in Howell v. Hamilton Meats & Provisions, Inc.... more >

Insurance Commissioner Jones and Assembly Speaker Perez Highlight $11 Million Insurer Community Investment
This week, California Insurance Commissioner Dave Jones and Assembly Speaker John Perez held a press conference with executives from three insurers to... more >

Registration Now Open for ACIC General Counsel Seminar
Program registration and hotel reservations are now open online for ACIC’s 22nd Annual General Counsel Seminar, which will be July 27-29 at the Encore... more >

WCAB Issues Precedential Decision on Medial Provider Networks
In Elayne Valdez v. Warehouse Demo Services et al., the Workers' Compensation Appeals Board issued an en banc opinion which held that "...where unauth... more >

U.S. Supreme Court Reinforces Policy Favoring Arbitration
In AT&T Mobility LLC v. Concepcion, the U.S. Supreme Court held that the Federal Arbitration Act (FAA), which makes arbitration agreements "valid, irr... more >

NICB Releases Report on Suspicious Claims in California
The National Insurance Crime Bureau (NICB) released a report yesterday which found a 9% increase in the number of questionable claims (QC) in Californ... more >

Federal Court Lacks Jurisdiction in Air-Ambulance Case
In California Shock Trauma Air Rescue (CALSTAR) v. State Compensation Insurance Fund et al., the Ninth Circuit Court of Appeals affirmed the district ... more >

Rating Bureau Announces Expanding Informational Offerings
The Workers’ Compensation Insurance Rating Bureau announced this week an expansion of the information it will make available online to agents, brokers... more >

Gov. Brown Appoints Christine Baker Chief Duputy of DIR, John Duncan Moves to Private Sector
This week Gov. Jerry Brown announced that he appointed Christine Baker as chief deputy director of the Department of Industrial Relations (DIR). ... more >

Sacramento City Council Repeals "Crash Tax" Before it Collects a Penny
Following months of media attention and weeks of speculation, the Sacramento City Council voted 6 to 2 on Tuesday to approve an ordinance that repeals... more >

Plaintiff Allowed to Proceed on New Causes of Action
In Jeffrey Tverberg et al. v. Fillner Construction, Inc. the First Appellate District reversed the granting of summary judgment for the defendant and ... more >

ACIC Names New Board Chair, Vice Chair and Board of Directors
During their Annual Meeting on March 22, 2011, members of the Association of California Insurance Companies (ACIC) nominated and appointed a new chair... more >

Gov. Brown Appoints Former Lawmaker as Secretary of State and Consumer Services Agency
On March 22, 2011, Gov. Jerry Brown announced his appointment of Anna Caballero, 56, as Secretary of the State and Consumer Services Agency. ... more >

Appellate Court Affirms Insurer's Option to Repair
In Harry R. Hibbs et al. v. Allstate Insurance Co. the Second District Court of Appeal, affirmed the trial court's order granting summary adjudication... more >

Oceaside Repeals Crash Tax
This week, the Oceanside City Council voted 3 to 2 to repeal their crash tax.... more >

Appellate Court Upholds Reduction of Award for Medical Expenses
In Edward Felix v. Brandon W. Aronson et al., the Second District Court of Appeal unanimously upheld the trial court’s order reducing plaintiff Felix’... more >

At-Fault Regulations Adopted
The Principally at Fault Regulations have been approved by the Office of Administrative Law and filed by the Secretary of State. ... more >

Appellate Court Upholds Denial of Insurer's Appraisal Request
In Douglas Kirkwood v. California State Automobile Association Inter-Insurance Bureau (CSAA) the First District Court of Appeal affirmed the trial cou... more >

City of Sacramento's Crash Tax May be Repealed
This week’s meeting of the Sacramento City Council produced a surprise result. Councilmember Jay Schenirer moved to put an item on a future agenda to... more >

U.S. Supreme Court Declines to Review Workers' Compensation Case
In Vaughan Sheet Metal & Roofing L.L.C. v. Antonio Garcia Rodriguez, the U.S. Supreme Court refused to review a case from Louisiana which raised the i... more >

Compensation Insurance Fund Task Force is Closed
An internal staff memo from State Compensation Insurance Fund President Tom Rowe announced this week that the investigation by a task force made up by... more >

Court Orders Publication of Medical Expense Decision
Last week’s ACIC Weekly Report advised that ACIC and other insurer associations and insurers asked the California Court of Appeal to publish the Cabre... more >

Court Rules Adjusters Not Entitled to Overtime Pay
The Second District Court of Appeal has ruled in Hodge v. AON Insurance Services that claims adjusters who worked for a third-party claims administrat... more >

CEA Board Seeks Rate Decrease
The Governing Board of the California Earthquake Authority (CEA) voted yesterday to file an application for a 12.5% decrease in the CEA's statewide av... more >

Roseville Repeals Crash Tax Ordinance
The City Council of Roseville, a community 20 miles from Sacramento, has repealed the ordinance that allowed the city to charge nonresidents for the c... more >

Court Strikes Down Exclusion in Homeowners Policy
The California Supreme Court yesterday invalidated a provision in a homeowners insurance policy that excluded coverage for the intentional or criminal... more >

ACIC Joins in Call for Publication of Medical Expenses Decision
ACIC joined with other associations and several insurers in seeking publication of a Court of Appeal ruling that the collateral source rule does not p... more >

DWC Acting Director Passes
Carrie Nevans, acting administrative director of the California Division of Workers’ Compensation (DWC), passed away last weekend from kidney failure.... more >

Subcommittees Pass DOI Budget
The budget subcommittees in both the Senate and the Assembly have passed the Department of Insurance’s budget as proposed in the Governor’s Budget. ... more >

Website Coverage Regulations Adopted
The Office of Administrative Law yesterday approved the Department of Insurance's adoption of regulations that implement the statute which requires we... more >

Sacramento's Crash Tax Creates Backlash
Neighboring communities have reacted negatively to the City of Sacramento’s decision to charge a “crash tax” against non-residents who are involved in... more >

CHSWC Report on Compound Drugs Released
The Commission on Health and Safety and Workers Compensation released a report titled: “Use of Compound Drugs, Medical Foods, and Co-Packs in Californ... more >

Principally At-Fault Amendments Sent to OAL
The Department of Insurance today sent the proposed amendments to the auto principally at-fault regulation to the Office of Administrative Law (OAL) w... more >

Mark Sektnan Named New ACIC President
PCI President and CEO David Sampson has named Mark Sektnan as President of ACIC. ... more >

Supreme Court Rules on Standing to Bring UCL Lawsuit
On Jan. 27, 2011, the California Supreme Court handed down a ruling on the standing restrictions that Proposition 64 imposed on lawsuits brought purs... more >

Sacramento Passes Crash Tax Ordinance
The Sacramento City Council passed a crash tax ordinance with a 5-4 vote at the council's Jan. 25 meeting. ... more >

Nicole Mahrt Joins ACIC Staff
Nicole Mahrt joined the ACIC staff this week as the association's director of public affairs. ... more >

Panel Supports Decrease in CEA Rates
The Advisory Panel of the California Earthquake Authority (CEA) yesterday voted to support a staff recommendation for a 2.5% decrease in the CEA's sta... more >

Court Rules on Excess Insurer's Subrogation Rights
In its Jan. 7, 2010, ruling in Dobbas v. Vitas, the Third District Court of Appeal denied an excess insurer's subrogation claim. ... more >

Supreme Court Lets Ruling on Approved Insurance Rates Stand
The California Supreme Court this week rejected requests for the depublication of a landmark Court of Appeal decision which endorses the doctrine that... more >

Court Won't Review Surplus Line Tax Decision
The California Supreme Court announced on Jan. 12 that it will not review a Court of Appeal decision that surplus line insurance premiums are not subj... more >

Electronic Filing Regulations Withdrawn
The Department of Insurance has asked the Office of Administrative Law (OAL) to terminate that agency’s consideration of proposed regulations that wou... more >

Website Coverage Regulations Sent to OAL
The Department of Insurance has asked the Office of Administrative Law (OAL) for approval of the adoption of regulations that implement the statute th... more >

Dave Jones Takes Office
Dave Jones took the oath of office as California's insurance commissioner on January 3. In his inauguration speech, Commissioner Jones announced thre... more >

Homeowners Cost Estimate Regulations Adopted
On Dec. 29, 2010, the Office of Administrative Law approved the Department of Insurance's adoption of regulations that require that replacement cost e... more >

Amendment to Hearing Procedure Regulation Adopted
On Dec. 30, 2010, the Office of Administrative Law approved the Department of Insurance's adoption of an amendment to the regulation that governs the ... more >

Department of Insurance Holds Hearing on Export List
On Dec. 6, 2010, the California Department of Insurance conducted its annual hearing regarding the renewal of the Export List for surplus line coverag... more >

OAL Reviewing Regulations on Hearings and Electronic Filings
The Department of Insurance has asked the Office of Administrative Law (OAL) to approve the adoption of two sets of regulations.... more >

Department Holds Workshop on Group Insurance
ACIC attended a workshop hosted by the Department of Insurance on group insurance to gather comments on potential regulations to implement Insurance C... more >

ACIC Calls for Changes to Principally At-Fault Amendments
ACIC testified at the Department of Insurance hearing last week on proposed amendments to the regulation that describes how an auto insurer determines... more >

ACIC Opposes De-Publication of Insurance Rate Decision
ACIC filed a letter with the California Supreme Court last week, urging the court to reject requests for de-publication of a Court of Appeal decision ... more >

Learn about ACIC’s position on these California insurance topics: