Can an injunction be issued to prevent a policyholder from bringing a common law action seeking damages against an insolvent insurance company?

There can be no doubt the court has authority to issue injunctions of this kind. As explained by our high court, "if ... a policyholder attempted a common law action seeking restitution as a remedy to restore property lost by an insolvent insurance company, such an action would be precluded by Insurance Code section 1037, subdivision (f). The suit would fall squarely within the exclusive role of the Commissioner, as conservator and trustee, to prosecute and defend any and all suits and other legal proceedings pertaining to the insolvent insurer's property and business." ( State of California v. Altus Finance , supra , 36 Cal.4th at p. 1305, 32 Cal.Rptr.3d 498, 116 P.3d 1175.)