California Codes

Cal. Insurance Code § 1063.12 (2026)

✓ current as of May 2026

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(a)The association, its member insurers, and its officers, directors, agents or employees of the association, or its member insurers, shall under no circumstances be liable for any sum in excess of the amount of covered claims of the insolvent insurer, as defined under subdivision (c) of Section 1063.1 of this article and the costs of administration and the costs of loss adjustment, investigation and defenses relating to claims thereunder.

(b)Any person or member made a party to any action, suit or proceeding because such person or member served on the board of governors or on a committee or was an officer or employee of the association shall be held harmless and be indemnified by the association against all liability and costs (including the amounts of judgments, settlements, fines or penalties) and expenses incurred in connection with such action, suit or proceeding; provided, however, such indemnification shall not be provided on any matter in which the person or member shall be finally adjudged in any such action, suit or proceeding to have committed a breach of duty involving gross negligence, dishonesty, willful misfeasance or reckless disregard of the responsibilities of his office.

(c)The costs and expenses of such indemnification shall be prorated and paid for by the members in the same manner as provided in the plan of operations for the proration of premiums.

(d)The provisions of this section shall not be construed as creating any right in any third person, and shall be applicable only as between the association and its member insurers and its officers, directors, agents, or employees of the association or its member insurers.

Notes of Decisions

Cited in 2 cases, 1991–1998 · leading case: California Ins. Guarantee Ass'n v. Superior Court, 91 Cal. Daily Op. Serv. 5256 (Cal. Ct. App. 1991).

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California Ins. Guarantee Ass'n v. Superior Court, 91 Cal. Daily Op. Serv. 5256 (Cal. Ct. App. 1991). “) CIGA is correct when it argues that its liability is statutorily limited (Ins. Code, § 1063.12, subd. (a)) to the amount of “covered claims.”

Cnty. of Orange v. FST Sand & Gravel, Inc., 98 Cal. Daily Op. Serv. 2983 (Cal. Ct. App. 1998). “The trial court granted the motion, and this appeal followed in the wake of the ensuing judgment.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.