Supreme Court Denies Insurers from Challenging Quake Claims Law

The Supreme Court denied a challenge to state law to stop California earthquake victims from refiling homeowners claims in retrospect to the 1994 Northridge earthquake, according to the Associated Press.

The law, which was countered by 21st Century in a lawsuit against the Superior Court of California, allowed victims and their families an extension to file claims.

The extension was granted for one year beginning January 1, 2001, after some victims contended that the insurers were ripping them off by mishandling claims, allegations the insurance companies deny.

The companies told the Supreme Court that it was unconstitutional to retroactively void contracts as well as the standard on-year deadline policyholder’s usually have to file claims.

Their efforts proved unsuccessful, however, as U.S. Justices refused to consider the case, and a California appeals court had already turned down the challenge.

The Legislature wanted to give victims the opportunity to refile claims if they were unhappy with the results of their initial claims.

The Northridge quake cost an estimated $15.3 billion in insures losses, and resulted in the filing of more than 600,000 claims.

Topics California Carriers Claims