California to Deny Sale of Illegal Insurance Policies

appeals first district
California Court of Appeal First District San Francisco

In an unprecedented gesture, the California Court of Appeals held that the CA Department of Insurance has a duty to review the language of disability insurance policies, and if they find that the language is contrary to CA law, refuse to allow the policy to be sold.

While technically the Department of Insurance already has this duty (so say the CA statutes), they have never been ordered to perform it before.

Hopefully this means policies with illegal, misleading, unfair language will no longer be sold in California.

Congratulations to San Francisco attorney Bennett M. Cohen for this victory on behalf of consumers.

UPDATE: On appeal, this decision was UPHELD. Great news for consumers!

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