Insurance,
Civil Litigation,
California Courts of Appeal
Nov. 3, 2021
Insurance commissioner can’t order State Farm refunds, panel holds
In an opinion issued Friday, the justices said a provision of Proposition 103, Insurance Code Section 1861.05a — which gave the insurance commissioner the power to order refunds from insurers that overcharge policyholders — should not apply to State Farm Mutual Automobile Mutual Insurance Co.’s California subsidiary, State Farm General.
State Farm won't have to issue refunds to customers who said they were overcharged for insurance, the 4th District Court of Appeal ruled, upholding a judge's rejection of California's insurance commissioner's legal interpretation.
In an opinion issued Friday, the justices said a provision of Proposition 103, Insurance Code Section 1861.05a -- which gave the insurance commissioner the power to order refunds from insurers that overcharge pol...
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