Legal Question in Insurance Law in California

Insurance Claim -Negligence to Pay

Currently I have had for 5 years claim free a Mortgage Insurance that has a Deluxe Homeowners feature included.

In November 2003 I had a break In and some items stolen, since then Insurance has only given me a run around and bad faith in return. Insurance policy states they do cover these items but representative seems to not want to resolve the issue. Can I initiate a small claim law suit against their company?


Asked on 8/24/04, 1:19 pm

2 Answers from Attorneys
Barry Snyder Snyder Law

Re: Insurance Claim -Negligence to Pay

Of course you can file a Small Claims action against the company, and if you want, the adjuster. Doing the latter might also give you more leverage in ths negotiations. Keep in mind that you are limited in CA to $5000 in Small Claims court.

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Answered on 8/25/04, 2:39 pm
Steven Murray Steven W. Murray, APC

Re: Insurance Claim -Negligence to Pay

Yes, but you may not sue the adjuster for non-payment since he is not a party to the insurance contract. If he has done some other "legal" wrong, then he might be liable for that alone. Bad faith breach of an insurance policy is actionable only against the insurer.

You ought to write the insurer and give it a deadline to state its position in writing. You might be surprised when you get the return letter as the insurer will have some reasons for the delay. Thus a respose by you will be required, and then another letter will follow. This is how their game works.

After the letters try a complaint to the Ins. Commissioner. If you do sue, attach the letters to the complaint so the judge can see what is going on.

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Answered on 8/25/04, 3:17 pm


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