January 23, 2017

Supreme Court rejects challenge to Insurance Commissioner’s regulation for homeowners coverage

In Association of California Insurance Companies v. Jones, the Supreme Court today holds that the Unfair Insurance Practices Act authorized the Insurance Commissioner to enact a regulation regarding replacement cost coverage in homeowners insurance.  The court’s unanimous opinion by Justice Mariano-Florentino Cuéllar rejects one challenge to the 2011 regulation, a part of which, in a footnote, takes up almost three pages of the court’s opinion.  The court, however, remands the case to allow lower courts to evaluate other arguments against the regulation, including that it violates insurers’ rights to free speech.

The Supreme Court reverses the Second District, Division One, Court of Appeal.

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