John Franceschi, Plaintiff-Appellant-Cross-Appellee v. American Motorists Insurance Company, Defendant-Appellee-Cross-Appellant

This dispute involves a question of coverage under an insurance policy issued by American Motorists Insurance Company (AMI) to John Franceschi. AMI denied coverage on the ground that Franceschi had received medical treatment within the time frame of a preexisting conditions limitation in the policy. On that basis, AMI appeals the district court’s grant of partial summary judgment in favor of Franceschi on his claim for breach of insurance contract. Franceschi appeals the district court’s grant of summary judgment in favor of AMI on his claims for breach of the implied covenant of good faith and fair dealing, breach of statutory duties under California Insurance Code § 790.03(h), punitive damages, and attorney’s fees. The district court awarded Franceschi $24,095 plus prejudgment interest of 7% per annum on the principal. We affirm.

I.

On November 15, 1984, Franceschi’s coverage under a group comprehensive major medical policy issued by AMI to eligible law students in the Law Students Division of the American Bar Association became effective. The policy provides medical and hospital expense benefits up to $25,000 per policy year. The policy contains a “Waiting Period” provision…