Community Assisting Recovery, Inc. v. Aegis Security Insurance

Plaintiff, Community Assisting Recovery, Inc., a nonprofit corporation, filed this action on March 6, 1998, against 194 insurance companies which do business in the State of California. The second amended complaint is the operative pleading and alleges that plaintiff was formed to provide “consumer information and education for the full and proper restoration of earthquake-damaged buildings,” and that it has brought the instant action “on behalf of the general public pursuant to Business & Professions Code section 17204.”

It is alleged on information and belief that the companies issued insurance policies, some covering damage to property, some covering loss of use, and some providing the replacement value of lost property, and all with substantially identical language to that required by Insurance Code section 2071. The essence of the legal claim is contained within paragraphs 202 and 203, as follows:

“202. Pursuant to California Insurance Code sections 2070 and 2071, in the absence of some agreement or provision to the contrary in the policy which is substantially equivalent to or more favorable to the insured, an insurer providing fire insurance or related coverage…