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HomeInsurance CodeDiv. 1Pt. 2Ch. 1Art. 4§ 737 Immunity For Good Faith Actions

§ 737 Immunity For Good Faith Actions

Insurance Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 737 Immunity For Good Faith Actions

This law protects the commissioner, their helpers, and anyone who gives them information from being sued as long as they act honestly and in good faith while doing their job.

Key Takeaways

  • •The commissioner, their authorized reps, and examiners are safe from lawsuits if they act in good faith while carrying out the law.
  • •Anyone who shares information with them in good faith and without fraud is also protected from lawsuits.
  • •The law does not change any other legal privileges or immunities the people already have.
  • •If someone sues a protected person without a solid legal reason, the protected person can get their lawyer fees back.

Example

A company hands over its tax records to the commissioner during an audit, doing so honestly and without trying to hide anything.

Because the company gave the records in good faith, the commissioner can’t be sued for anything the commissioner says or does while reviewing them, and the company also can’t be sued for giving the records.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 737 Immunity For Good Faith Actions

(a) No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner’s authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out the provisions of this article. (b) No cause of action shall arise, nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner’s authorized representative or examiner pursuant to an examination made under this article, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. (c) This section shall not abrogate or modify in any way any common law or statutory privilege or immunity previously enjoyed by any person identified in subdivision (a). (d) A person identified in subdivision (a) shall be entitled to an award of attorney’s fees and costs if he or she is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities engaged in while carrying out the provisions of this article and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is substantially justified if it had a reasonable basis in law or fact at the time that it was initiated. (Added by Stats. 1992, Ch. 614, Sec. 1.6. Effective January 1, 1993.)

Last verified: January 11, 2026

Key Terms

liabilityinsurancetortfraudcommissioninformationexaminationcommunication

Related Statutes

  • § 704 Insurer Certificate Suspension
  • § 730 Insurer Financial Examinations
  • § 731 Foreign Insurer Admission Examination
  • § 734 Examiner Access And Cooperation
  • § 735 Insurer Examination Report Notice

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Insurance Code. Section 737.
View Official Source