UP submitted a brief in support of the Appellants, whose claim is that the insurance company violated its disclosure obligations under California Insurance Code section 381(f) by charging policyholders undisclosed “short-rate” premiums for cancellations of their insurance policy before the end of policy term. Section 381(f) is designed to help consumers make informed comparisons between policies by requiring insurance companies to provide in the policy an explicit statement of the premiums and mid-term cancellation fees associated with that policy.
Court California Court of Appeal, Second Appellate District, Division Seven
Case Number BC434852
- “Short-Rate” Premiums
- Duty to Disclose
- Fire Insurance