While attorneys are not permitted in small claims, that doesn't exempt the insurer from their duties to defend the policy holder.
They should assist the policy holder in making the motions mentioned, or have the case removed to a court where their attorney can appear, or just pay the person.
The California rules make that difficult. In an effort to ensure that large, well funded defendants can't bury the plaintiff in costs by transferring the case to superior court the state does not allow defendants to freely transfer the case to a higher court like a number of other states do. The defendant may only transfer to superior court if the court lacks jurisdiction over the plaintiff's claim (e.g. the claim is for more than what small claims court allows or is a type of action that cannot be maintained in small claims) or the defendant's counter claims exceed the small claims limit.
Moreover, the rule for attorney participation in small claims actions is:
(a) Except as permitted by this section, no attorney may take part in the conduct or defense of a small claims action.
(b) Subdivision (a) does not apply if the attorney is appearing to maintain or defend an action in any of the following capacities:
(1) By or against himself or herself.
(2) By or against a partnership in which he or she is a general partner and in which all the partners are attorneys.
(3) By or against a professional corporation of which he or she is an officer or director and of which all other officers and directors are attorneys.
(c) Nothing in this section shall prevent an attorney from doing any of the following:
(1) Providing advice to a party to a small claims action, either before or after the commencement of the action.
(2) Testifying to facts of which he or she has personal knowledge and about which he or she is competent to testify.
(3) Representing a party in an appeal to the superior court.
(4) Representing a party in connection with the enforcement of a judgment.
California Code of Civil Procedure section 116.530.
The language in (a) is very broad, and by itself would bar the attorney from doing anything for a client in a small claims case. The exception in (c)(1) then must be construed narrowly, meaning the attorney is allowed to provide "advice" but nothing more; that would appear then to preclude the attorney actually drafting motions or doing anything else that goes beyond mere advice.
