A New California Court of Appeal Decision Might Breathe Some New Life Into Unfair Competition Law Claims Against Insurers

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In Zhang v. Superior Court (California Capital Insurance Co.), Case No. E047207 (filed October 19, 2009), the Fourth District of the California Court of Appeal reversed the trial court's decision to sustain a demurrer on a policyholder's claim for false advertising under California's Unfair Competition Law ("UCL"), California Business & Professions Code section 17200 et seq. The UCL is, among other things, a very broad consumer protection statute that applies to false advertising and other business conduct that is unlawful, fraudulent, or unfair.

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