Farmers Insurance Exchange v. Superior Court

Insurance Code section 1861.02, enacted in November 1988 as part of Proposition 103, limits the factors that an insurer can consider in determining insurance rates. Statutes predating Proposition 103 created a comprehensive scheme for administrative enforcement of insurance rate regulations. Proposition 103 provided for greater public participation in those proceedings and enhanced the effectiveness and public accountability of the Insurance Commissioner (Commissioner). Section 1861.10, subdivision (a), also enacted as part of Proposition 103, states, “Any person may initiate or intervene in any proceeding permitted or established pursuant to this chapter, challenge any action of the commissioner under this article, and enforce any provision of this article.” The superior court, ruling on motions for judgment on the pleadings, determined that section 1861.10 creates a private right of action against an insurer for a violation of section 1861.02. The defendant insurers petitioned this court for extraordinary relief. In these consolidated writ proceedings, we conclude that there is no private right of action for a violation of section 1861.02 and grant the insurers’…