Rights of policyholders to sue insurance companies expanded by California court

Legal observers are predicting a small increase in the number of consumer protection lawsuits against insurers in California, as a result of a decision by state appellate that says that in a case of alleged unfair claims practices, policyholders are permitted to sue The Progressive Group of Insurance Companies. Until now, California courts had maintained that individuals have no private right of action to file a lawsuit within the Unfair Insurance Practices Act (UIPA) of the state for alleged violations. A California Supreme Court decision in 1988 stated that the…

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