Insurance Regulators: Conservatorship Test Rightly Tossed Under Doctrine

Mealey's (August 26, 2021, 1:39 PM EDT) -- PASADENA, Calif. — Allegations that they violated constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer were properly dismissed under the prior exclusive jurisdiction doctrine, the California insurance commissioner and his deputies tell the Ninth Circuit U.S. Court of Appeals in their Aug. 25 appellees’ brief, arguing that a federal judge in California correctly considered the gravamen of the action; they also urge affirmation of the judge’s alternative finding that abstention under Younger v. Harris applies....