Berger

This case involves the interplay between Code of Civil Procedure section 340.9 (section 340.9), which revives certain time-barred claims against insurers for policy benefits for losses caused by the January 17, 1994 Northridge earthquake, and the responsibilities of the California Insurance Guarantee Association (CIGA), which is obligated under Insurance Code section 1063 et seq. to pay the “covered claims” of insolvent insurers. Specifically, does an insured state a cause of action against CIGA for violation of Insurance Code section 1063 et seq. by alleging he or she has a Northridge earthquake claim against an insolvent insurer, revived by section 340.9, that has been denied by CIGA?

Based on the purpose of CIGA to protect the insured public from insolvent insurers by paying “covered claims,” as defined by Insurance Code section 1063.1, subdivision (c)(1) (Industrial Indemnity Co. v. Workers’ Comp. Appeals Bd. (1997) 60 Cal.App.4th 548, 557 [ 70 Cal.Rptr.2d 295 ]), and the Legislature’s intent in enacting section 340.9 to “ ‘bring needed relief to the victims of the Northridge earthquake’ ” by providing a one-year window for insureds with otherwise time-barred claims…