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Facts About Your Life Insurance Legal Rights in California

California has more specific laws and regulations to protect insurance policyholders than any other state in the country, and these laws tell insurers what they must, can and cannot do – these are the important Facts About Your Life Insurance Legal Rights in California. These are laws made by judges and legislators in Sacramento called “case laws” and “statutes” or “code provisions”.

There are many laws that tell companies and their representatives how they must behave when insured property is damaged and a claim is filed. Many people, including claim adjusters, are not aware of these laws. Some companies and adjusters routinely break these laws when handling claims – knowingly and unknowingly. This is particularly true when it comes to California’s “Fair Claim Settlement Practices” Regulations. Many claim adjusters and even company executives have no idea that these regulations exist – let alone what they say.

Have You Dealt with a Life Insurance Company Claims Adjuster Previously?

Do you know if they are breaking the law? WE DO.

If you arm yourself with some basic knowledge about the laws that protect you, you can speed up your settlement and improve your odds of getting paid what you’re owed. But you’re still best off by hiring experts like us. This is not a hobby for us – we have done this for decades, and even on the other side of the table, working for the insurer.

The most important law to remember is that your insurance company has the legal duty to investigate, process, and pay your claim fully, promptly and in good faith and deal with you fairly at all times.

Do You Know Your Life Insurance Legal Rights in California?

As an insured in California, you are legally entitled to be treated in “good faith” by your insurance company and its adjusters at all times.   The insurance company must look for coverage and try to pay your claim.   The insurance company communicated fully and honestly with you about the policy it sold you, and about rights and duties relating to your claim.  Also, you are legally obligated to be honest and to cooperate with reasonable requests for information relevant to your claim.  California Insurance Code section 790.03 is an important source of these requirements, as is California Insurance Code section 2071.

All adjusters and  representatives of your insurance company are legally required to tell you the truth – they cannot lie.   This includes in-person conversations and all communication by phone, letters, emails and all advertising and printed materials.  This means they must be honest about what they sell you, what you’ve paid for and what you’re entitled to if you file a claim. These are all elements of your Life Insurance Legal Rights in California.

An insurer “shall not cause to be issued, circulated or used, any statement that is known, or should be known, to be a misrepresentation” of the benefits or privileges of the policy or future dividends payable under the policy. [California Insurance Code section 780]  No insurer shall misrepresent to a “claimant pertinent facts or insurance policy provisions relating to any coverages at issue”. [California Insurance Code section 790.03]

  • No insurer shall discriminate in its claim settlement practices on the basis of a claimant’s age, race, gender, income, religion, language, sexual orientation, ancestry, national origin, physical disability or upon the territory of the property or person insured.  [California Code of Insurance Regulations section 2695.7]
  • You are entitled to a “good faith” settlement.  Every insurer must attempt “in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear”.
  • An insurer cannot make an “unreasonably low” offer, that is, attempting to settle a claim “for less than the amount to which a reasonable person would have believed he or she was entitled by reference to written or printed advertising material accompanying or made part of the application”.  [California Insurance Code section 790.02]

We Will Help You with Your Life Insurance Policy Beneficiary Claim.

Your insurer is under the direction of their attorneys – who are not on your side. WE are.

Have you suffered the unexpected loss of a loved one, only to have a claim for life insurance benefits delayed, or denied?  Do you get the feeling that the life insurance company is doing everything it can to avoid paying the claim?  Has the life insurance company sent you a letter stating that they are rescinding the policy, making a rescission, or just sending back the premiums paid? Especially if your loved one had the policy for less than two years before passing away, the life insurance company can become very aggressive at seeking to avoid the policy payment.  Rescission and Application Misrepresentation are both favored strategies of the life insurance company, especially if the policy was issued less than two years before the death.

We can help.  Call LifeInsuranceLawyerNOW.com at (888) 997-4070, or (818) 937-0937, or send an email to us in the form on the side of the screen.  We are highly experienced lawyers, not paralegals, and we know this area.  We get right to it with you and the insurance company, and get many claims paid right away.  If court is necessary, we are regular Federal litigators and will push the life insurance company hard for the well being of you and your family.  We respect you, deal directly with you, and understand not only the law and facts, but what you are going through.  We are here to help.  Contact us as soon as possible, to get your claim paid faster.