Bally

I. BACKGROUND

1 This lawsuit turns in large part on the interpretation of a single provision in State Farm’s 2 Form 94030 life insurance policy, entitled “Monthly Cost of Insurance Rates” (the “Monthly COI 3 Rates provision”). See Complaint ¶¶ 11–29; Policy (Dkt. 63-2) at 10. The operative language of 4 the provision is: “These rates for each policy year are based on the Insured’s age on the policy 5 anniversary, sex, and applicable rate class.” Id. The Court has already determined that the phrase 6 “based on” connotes exclusivity. See Order Denying Mot. for Summary Judgment at 14. The 7 main issue now is what the remainder of the provision means, and particularly what policyholders 8 would understand goes into an “applicable rate class.” 9 A. The Policy 10 Bally purchased a flexible premium adjustable insurance policy on Form 94030 from State 11 Farm on April 8, 1994, on behalf of her daughter. See Complaint ¶¶ 11, 47. State Farm offered 12 the Policy to customers in California from January 1, 1994 to June 30, 2004. See Mot. for Class 13 Cert. at 3. During that time, an estimated 86,000 Californians purchased the Policy. See Order 14 Granting Class Cert. at 14. 15…