California Insurance Code

§ 816

INS § 816Div. 1 · Part 2 · Ch. 1 · Art. 7.5

Statute text

No insurer shall pay any person given discretion as to settlement of claims under any policy of insurance, or surety bond, whether in direct negotiation with the claimant or in supervision of the person negotiating, a compensation which in any way is contingent upon the amount of settlement of such claims, except as in this section otherwise expressly provided. This section shall apply equally to a single claim, a number of specified claims, an aggregate of claims during a specified period of time or an aggregate of claims under any contract, agreement or arrangement. This section shall not affect the interpretation or provisions of Section 815. The word “person” as used in this section includes, but is not limited to: employees, agents, brokers, representatives, general agents, managing general agents, surplus line brokers, insureds, coinsureds, adjusters and independent contractors but does not include attorneys in fact or other exclusive managers of an insurer. This section does not apply to:

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Legislative history

Amended by Stats. 1972, Ch. 200.