CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - THURSDAY, NOVEMBER 6, 2025

Call Me Maybe: California’s Fair Claims Settlement Practices Regulations

Red regulations folder next to notebook and laptop

Insurance Code section 790.03 sets forth sixteen (16) unfair claims settlement practices by insurers and sureties.

November 4, 2025
Garret Murai - California Construction Law Blog

It’s not uncommon in construction claims for there to be Insurance and bond issues, whether it’s tendering a claim to your insurer, or claims against a license, payment, or performance bond. Insurance Code section 790.03 sets forth sixteen (16) unfair claims settlement practices by insurers and sureties including:

  1. Misrepresenting to claimants pertinent facts or insurance policy provisions relating to any coverages at issue.
  2. Failing to acknowledge and act reasonably promptly upon communications with respect to claims arising under insurance policies.
  3. Failing to adopt and implement reasonable standards for the prompt investigation and processing of claims arising under insurance policies.

Mr. Murai may be contacted at gmurai@nomosllp.com


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