What is California Insurance Code §790.03?
California Insurance Code §790.03 is the Unfair Insurance Practices Act. Subsection (h) lists sixteen specific unfair claim settlement practices that insurers are prohibited from committing — including misrepresenting policy terms, failing to acknowledge communications promptly, denying claims without a reasonable investigation, and forcing insureds to litigate by lowballing settlements.
The most-cited §790.03(h) violations
Not every §790.03(h) subsection matters in every case. In California homeowner and auto-property bad faith files, six subsections do most of the work:
- (h)(1) — Misrepresenting pertinent facts or policy provisions
- (h)(2) — Failing to acknowledge and act reasonably promptly upon communications
- (h)(3) — Failing to adopt and implement reasonable standards for prompt investigation
- (h)(5) — Failing to attempt in good faith to effectuate prompt, fair, and equitable settlements once liability is reasonably clear
- (h)(6) — Compelling insureds to litigate by offering substantially less than what is ultimately recovered
- (h)(13) — Failing to provide a reasonable explanation of the basis for a denial or compromise offer
Does §790.03 give me a private right to sue?
Under Moradi-Shalal v. Fireman's Fund (1988), §790.03(h) itself doesn't create a private cause of action. But the same conduct almost always breaches the implied covenant of good faith and fair dealing, which does — so §790.03(h) becomes the framework California courts use to measure whether the carrier acted unreasonably.
Need the evidence organized?
We build the bad faith evidence file for California policyholders: correspondence log, line-item estimate comparison, §790.03 citation map, and an exhibit-ready binder. $95/hour, client-directed.
Open an evidence fileRelated questions
Educational information only. Legal Document Assistants provide evidence services under California Business & Professions Code §6400 et seq.; we do not provide legal advice.