High Court said law banning fraud coverage is constitutional

By Shane Dilworth (Dec 14, 2021, 5:59 p.m. EST) – A unit of Starr Insurance has urged the United States Supreme Court not to challenge a Ninth Circuit ruling on the constitutionality of a California law that prevents insurers from defending claims claims about alleged violations of state laws on unfair competition and false advertising.

Starr Indemnity & Liability said in Monday’s brief that arguments by retail chain operator Adir International LLC and its CEO Ron Azarkman that Section 533.5 of the California Insurance Act unconstitutionally deprived them of the right to a lawyer are ineffective. The insurer told the country’s highest court it did not need to review the Ninth Circuit ruling, which required …

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