Baer

Plaintiffs/appellants Ronald A. Baer and Linda Baer (appellants) appeal from the summary judgment entered against them and in favor of defendants/respondents Associated Life Insurance Company et al. (Associated Life).

Underlying Facts

While an employee of Virgil’s Auto Body and Paint, appellant Ronald Baer was insured under a group medical insurance policy issued by Associated Life on September 1, 1981. The policy provided a lifetime maximum of $1 million in major medical insurance benefits. On October 30, 1982, Mr. Baer was seriously injured in an automobile accident and was rendered a quadriplegic. On February 1, 1983, Associated Life terminated Mr. Baer’s coverage under the policy. Up to that time, Associated Life had paid all Mr. Baer’s benefits due for covered medical expenses. Associated Life informed Mr. Baer that he was entitled to coverage under the extension of benefits provision for all complications arising out of the October 30, 1982, accident until February 1, 1984.

On November 18, 1982, pursuant to Insurance Code section 1065.2, the Commissioner of Insurance issued a cease and desist order to Associated Life, ordering it, with some exceptions, “to cease…