Can an insurance company admit to cutting off disability benefits to see if insureds would complain?

California, United States of America


The following excerpt is from Sprague v. Equifax, Inc., 166 Cal.App.3d 1012, 213 Cal.Rptr. 69 (Cal. App. 1985):

In Neal v. Farmers Ins. Exchange (1978) 21 Cal.3d 910, 922-923, and footnotes 6 and 8, 148 Cal.Rptr. 389, 582 P.2d 980, evidence of an insurance company's policy on settlement of claims, in the form of a claims representative field manual which described claims procedures was used to [166 Cal.App.3d 1034] show the insurance company's intent and that the company engaged in a conscious course of conduct towards plaintiffs.

In Pistorius v. Prudential Insurance Co., supra, 123 Cal.App.3d 541, 556-557, and footnote 10, 176 Cal.Rptr. 660, the court rejected an insurance company's contention that Evidence Code section 1101, subdivision (a), prohibited admitting evidence of episodes of cutting off disability benefits to see if insureds would complain, consistent with the company's long standing policy. The court held that under subdivision (b) of section 1101, this evidence was admissible to show motive, opportunity, intent, plan, knowledge and the like, in terminating plaintiff's benefits.

Other Questions


Can a recipient of federal and state-funded disability benefits appeal against his disability benefits? (California, United States of America)
Does an attorney have a legal right to stipulate away an insured's rights without his consent for the benefit of his other client, the insurance company? (California, United States of America)
Does a defendant have to pay full restitution to the insurance company of the victim's insurance company? (California, United States of America)
What fiduciary duty does an attorney hired by an insurance company to defend in an action against the insured owe to the insured? (California, United States of America)
Does an insurance company have a duty to verify an insured's statements made on an insurance application? (California, United States of America)
What is the test of good faith and fair-dealing in the context of an insurance policy where the insurer is required to hire an attorney to defend the insured against the insured? (California, United States of America)
What is the duty of an insurer not to withhold payment of an insured's insurance benefits? (California, United States of America)
What is the difference between an insurance company and a reinsurance company? (California, United States of America)
Does a medical insurer have a duty of good faith and fair dealing in denying an insured's claim for hospital benefits? (California, United States of America)
Can an insured's failure to notify the insurance company within a certain time frame justify denial of coverage for a claim? (California, United States of America)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.