Hightower

Plaintiffs and appellants Ruth Hightower (Hightower), Alicia Flowers (Flowers) and Coralene Hayes (Hayes) (sometimes collectively referred to as Hightower) appeal a judgment following a grant of judgment on the pleadings in favor of defendant and respondent Farmers Insurance Exchange (Farmers).

The issues presented are whether exhaustion of administrative remedies under the California Automobile Assigned Risk Plan (the CAARP) is a prerequisite to the filing of a bad faith action against an insurer under an uninsured motorist policy, and whether a cause of action may be stated against an insurer for demanding arbitration of a claim for uninsured motorist benefits even where the insurer’s liability is clear.

We conclude the CAARP remedy does not apply to every dispute between an insurer and one who is insured under the assigned risk system. The CAARP regulatory scheme extends only to matters governed by the assigned risk law and does not provide a forum for disputes involving the adjustment of claims. Therefore, Hightower was not required to allege an exhaustion of the administrative remedy.

Further, while Insurance Code section 11580.26, subdivision (b), immunizes an…