(a)Under a policy of disability insurance other than health insurance, as defined in Section 106, including a policy of disability income insurance, as defined in subdivision (c) of Section 799.01, payment of benefits to the insured shall be made within 30 calendar days after the insurer has received all information needed to determine liability for a claim. However, the 30-calendar-day period shall not include any time during which the insurer is doing any of the following:
(1)Awaiting a response for relevant medical information from a health care provider.
(2)Awaiting a response from the claimant to a request for additional
relevant information.
(3)Investigating possible fraud that has been reported to the department’s Fraud Division in compliance with subdivision (a) of Section 1872.4.
(b)If the insurer has not received all information needed to determine liability for a claim within 30 calendar days after receipt of the claim, the insurer shall notify the insured in writing and include a written list of all information it reasonably needs to determine liability for the claim. In that event, the 30-calendar-day period set out in subdivision (a) shall commence when the insured has provided to the insurer all information in that notification. If no notice is sent by the insurer within 30 calendar days after the claim is filed by the insured, interest shall begin to accrue on the payment of
benefits on the 31st calendar day after receipt of the claim, at the rate of 10 percent per year.
(c)When the insurer has received all information needed to determine liability for a claim, and the insurer determines that liability exists and fails to make payment of benefits to the insured within 30 calendar days after the insurer has received that information, any delayed payment shall bear interest, beginning the 31st calendar day, at the rate of 10 percent per year. Liability shall, in all cases, be determined by the insurer within 30 calendar days of receiving all information set out in the insurer’s written notification to the insured.
(d)Nothing in this section is intended to restrict any other remedies available to an insured by statute or any other
law.
Notes of Decisions
Cited in
9
cases (
2 in the last 5 years), 2009–2025 · leading case:
Oster v. Stand. Ins., 768 F. Supp. 2d 1026 (N.D. Cal. 2011).
Oster v. Stand. Ins., 768 F. Supp. 2d 1026 (N.D. Cal. 2011).
· cites it 4× “Plaintiff argues that in exercising this discretion, some courts have awarded prejudgment interest in the amount of 10% simple interest per annum, as set as set by California Insurance Code § 10111.2 when the circumstances and equities justify the rate.”
Minton v. Deloitte & Touche USA LLP Plan, 631 F. Supp. 2d 1213 (N.D. Cal. 2009).
“Plaintiff argues that interest should be calculated at an annual rate of ten percent pursuant to California Insurance Code § 10111.2. Plaintiff does not explain, however, why a statute governing interest due on claims brought under state law would apply to a federal ERISA claim.”
Doe v. Prudential Ins. Co. of Am., 258 F. Supp. 3d 1089 (C.D. Cal. 2017).
“Although some courts apply analogous state statutory rates such as that set by Cal. Ins. Code § 10111.2 , the Court is satisfied that 11.”
Cox v. Allin Corp. Plan, 70 F. Supp. 3d 1040 (N.D. Cal. 2014).
“In addition, the Court, upon motion of Aetna, dismissed Plaintiffs second claim for prejudgment interest under California Insurance Code § 10111.2 and third claim for discrimination under § 510 of ERISA.”
Mahlon D. v. Cigna Health & Life Ins. Co., 291 F. Supp. 3d 1029 (N.D. Cal. 2018).
· cites it 2× “" Cal. Ins. Code § 10111.2 (a). Elsewhere in the Code, other sections refer to health insurance by its definition as "disability insurance polic[ies] .”
Monroe v. Metro. Life Ins. Co. (E.D. Cal. 2020).
“Remand: Defendant requests in its responding trial brief that the Court remand the 3 action back to the administrator to determine whether Plaintiff is disabled under the more 4 expansive definition of any gainful occupation.”
Dr. Kellie Lim v. The Lincoln Nat'l Life Ins. Co. (N.D. Cal. 2025).
“” Cal. Ins. Code § 10111.2 (c). This provision is inapplicable to Plaintiff’s 22 case, however, as the insurer did not “determine[] that liability exists” until after she filed suit.”
Torres v. Unitedhealthcare Ins. Co. (9th Cir. 2025).
“, Cal. Ins. Code § 10111.2 (a) (distinguishing a “policy of disability insurance other than health insurance, as defined in Section 106” (emphasis added)); Cal.”
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