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California Supreme Court

Apr. 22, 2009

Life Insurers Win Big On Consumer Suits

The state Supreme Court ruled Monday that the consumer law designed to protect against deceitful marketing in the sale of services and products does not apply to life insurance, because it is neither.

By Laura Ernde
Daily Journal Staff Writer

The California Supreme Court handed the insurance industry a major victory Monday by ruling that a consumer protection law allowing plaintiffs to recover punitive damages and attorney fees from businesses that use shady sales tactics can't be wielded against life insurance companies.

Business defense lawyers praised the unanimous ruling and predicted it will stop the use of the state Consumer Legal Remedie...

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