Unfair Claims Practices By Insurance Companies
Insurance companies are now required to provide to their customers information relating to unfair methods of competition and the deceptive acts or practices in the business of insurance in its initial response to a claim. Conditions in a fire insurance policy as to loss requirements, appraisals and adjustors are now applicable to earthquake policies which are originated or renewed after January 1, 2002.
California law now states that residential liability and commercial insurance policies may not be cancelled or renewal refused on any policy solely because one or more claims have been made against the policy during the preceding five (5) years for a loss that is the result of a hate crime if the insured is a religious or educational organization or other nonprofit organized for religious, charitable or educational purposes. The law authorized a law enforcement agency using specified guidelines to determine if the action in question was a hate crime. Finally, the law requires the insurance company to report to the insurance commissioner any cancellation or nonrenewable policy after an insured has submitted a claim to the insurance company that is the result of a hate crime.
Expansion of Rules for Arbitrators and Mediators
Although there have been laws requiring the neutrality and disclosure of conflicts of interest by arbitrators and mediators, abuse and bias are continuing. This new law requires arbitrators to comply with the ethical standards adopted by the Judicial Council in the State of California. It requires the Judicial Council to adopt ethical standards to address the disclosure of conflicts of interest, including prior services as an arbitrator or dispute resolution neutral entity, disqualifications, the acceptance of gifts and the establishment of future professional relationships. Grounds upon which a proposed neutral arbitrator maybe disqualified and the procedure to do so including the form of a petition to disqualify are required. This new law also requires the court to dismiss an arbitration award if the arbitrator failed to disclose within the time required for disclosure any grounds for disqualification of which the arbitrator is aware.
Prohibition of Price Difference Based Upon Gender
Previous laws have provided that no business establishment may discriminate with respect to price charged for services of similar or like kind because of gender. However, price differences are not prohibited when they are based upon the amount of time, difficulty or cost of providing the services.
This new law requires specified business establishments, including dry cleaners, to disclose in writing the price of each standard service, to display a sign stating that is it illegal to base pricing on gender and a complete price list is available upon a request, and to display the price list. The law further provides that a business establishment failing to correct a violation of these requirements within thirty (30) days of receiving written notice of a violation is liable for a civil penalty of $1,000.
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