Colonial Life & Accident Insurance Co. v. Superior Court

In Colonial Life & Accident Insurance Co. v. Superior Court (1982) 31 Cal.3d 785, the plaintiff representative of a decedent's estate filed an action alleging unfair claims settlement practices against the decedent's insurer, and served the company that acted as the insurer's claims adjuster with a demand to produce documents pertaining to cases handled by the adjuster's employee who had handled the decedent's claim under an accident policy. The insurer objected to production based on the IIPPA and other grounds. (Colonial Life & Accident Ins. Co. v. Superior Court, supra, 31 Cal.3d at p. 787.) The trial court ordered the adjuster to produce the names and addresses of all insureds whose claims for benefits had been handled by the employee in question and approved a letter to be sent by the plaintiff to those insureds, requesting their consent to the adjuster's release of their records. (Id. at p. 789.) Addressing the insurer's complaint that revealing information about other claimants potentially violated privacy interests protected by the IIPPA, the Supreme Court noted that under section 791.13 of the IIPPA, one of the exceptions to the prohibition against disclosure of personal or privileged information permits such disclosure with the written authorization of the insured, subject to certain requirements, including the requirement that the written authorization be obtained one year or less prior to the date a disclosure is sought. ( 791.13, subd. (a).) The court observed that the notice procedure approved by the trial court "should satisfy these requirements if the authorization form, included in the letter sent to claimants, is returned within a year." (Colonial Life, supra, 31 Cal.3d at pp. 792-793, fn. 10.)