US SUPREME COURT REJECTS INSURER CHALLENGE TO QUAKE LAW

The US Supreme Court has refused to hear an appeal by California-based motor writer 21st Century Insurance in a case where the carrier sought to overturn a local law giving policyholders an extra year to file claims related to the 1994 Northridge earthquake. The state legislature passed the law in 2000, allowing policyholders all of 2001 to file new or amended Northridge-related claims, following reports that insurers had mishandled claims and mistreated customers. A California county court had originally rejected a policyholder’s claim against 21st Century, noting that her claim was not filed within a year of the quake. The court reversed the ruling following the passage of the law, which was then upheld by a state appeals court. 21st Century, majority-owned by New York-based AIG, went to the US Supreme Court after the state supreme court refused to review the case. The law is currently being contested by several insurers and policyholders in state and federal courts in California.