California Insurance Code

§ 10089.82

INS § 10089.82 Effective Jan 1, 2006Div. 2 · Part 1 · Ch. 8.9

Statute text

(a)An insured may not be required to use the department’s mediation process. An insurer may not be required to use the department’s mediation process, except as provided in Section 10089.75.

(b)Neither the insurer nor the insured is required to accept an agreement proposed during the mediation.

(c)If the parties agree to a settlement agreement, the insured will have three business days to rescind the agreement. Notwithstanding Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code, if the insured rescinds the agreement, it may not be admitted in evidence or disclosed unless the insured and all other parties to the agreement expressly agree to its disclosure. If the agreement is not rescinded by the insured, it is binding on the insured and the insurer, and acts as a release of all specific claims for damages known at the time of the mediation presented and agreed upon in the mediation conference. If counsel for the insured is present at the mediation conference and a settlement is agreed upon that is signed by the insured’s counsel, the agreement is immediately binding on the insured and may not be rescinded.

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Legislative history

Amended by Stats. 2005, Ch. 448, Sec. 3.5. Effective January 1, 2006.