An insurer unreasonably delays paying an undisputed amount on a homeowners claim by several months. Under Civil Code §3287, the insured may be entitled to:
a.Only the amount of the undisputed loss
b.Treble damages plus attorney fees
c.10% statutory interest on the delayed amount
d.5% statutory interest from the date of loss
Explanation
Civil Code §3287 entitles a claimant to prejudgment interest at the legal rate (10% per annum on noncontract obligations) once the amount due is fixed and certain. For an undisputed claim amount, interest accrues from the date the obligation became liquidated. This is in addition to any bad-faith remedies.
Law Reference: Cal. Civ. Code §3287This topic, taught in full in the Personal Lines Insurance Producer guide. Personal Lines Insurance Producer — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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