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'We came so close,' said general counsel for the Independent Insurance Agents & Brokers of California.

'What I am suggesting is that we read the statute — and it could have been written better — to be sure,' Chief Justice Stuart Rabner said.

The defendants involved in the alleged scheme said the records were irrelevant and privileged, as the criminal charges were dismissed.

Insurance industry news from ACORD, SIAA, Burns & Wilcox and more.

Since April, more than 500 felony charges have been filed and 132 vehicles, valued at $11.5 million, have been recovered.

The country's natural catastrophe insurance pool reportedly has a limit of $275 million in excess of $25 million.

The ruling hinged on the insurer's right under the policy to control the defense.