Procedural Posture
Plaintiff insured sued defendant insurer for breach of contract and for violation of Cal. Bus. & Prof. Code § 17200, contending that nothing in his life insurance policy allowed the insurer to respond to his request for surrender by continuing coverage and retaining the full premium. The Superior Court of Los Angeles County, California, granted the insurer's motion for summary judgment and the insured appealed. If you face litigation issues in your construction business in San Diego then hire a construction litigation attorney San Diego.
Overview
In granting the insurer summary judgment, the trial court determined that nothing in the policy entitled the insured to a refund of premiums and that Cal. Ins. Code § 481 did not apply. On review, the insured contended that § 481 applied unless the policy specifically stated that the premium would not be refunded when the policy was surrendered and that his unfair competition claim survived summary judgment. The appellate court disagreed, finding that the policy at issue was not ambiguous and explained exactly what the insured would receive on surrender. Although there was no specific reference to premiums, none was necessary; on any fair reading of the policy, surrender value did not include a return of premiums. The appellate court also found that the insured did not establish a triable issue on breach of contract or unfair or deceptive trade practices. Nothing in the documents proffered by the insured so much as indicated that the insurer attempted to wrongfully withhold a refund which was due under any statute or under the policy. As such, summary judgment was proper.
Outcome
The judgment was affirmed.
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