About the California Department of Insurance
Officially, the California Department of Insurance has the responsibility to enforce the California Insurance Code. Practically, it lacks the resources to do so. The Department of Insurance cannot force an insurance company to pay a claim. Registering a complaint with the California Department of Insurance is not an effective means for resolving a dispute with an insurance company.
The Department of Insurance does, however, have information policyholders may find valuable in understanding their rights. It also has regulations that a knowledgeable attorney can enforce.
The Unfair Practices Act
Part of the California Insurance Code, the Unfair Practices Act describes insurance company actions that are considered unfair and improper. There is no direct right to sue based on this Act; however, it can be used in an insurance bad faith lawsuit to establish that an insurance company's actions amounted to bad faith.
The California Department of Insurance has issued regulations that apply to all insurance claims in California.
These lengthy regulations prohibit insurance companies from taking specific actions, such as misrepresenting the facts of an insurance policy or failing to affirm or deny coverage in a timely manner.
Knowledge Is Power
To review these regulations, please see our Web page on The California Department of Insurance Claims Regulations — What Are They? Armed with this information, policyholders with relatively simple insurance disputes may be able to resolve matters on their own.
If you are involved with a complex insurance claim dispute or are the victim of insurance bad faith, contact Pillsbury & Levinson, LLP in San Francisco for effective legal representation.
