Archives: Bad Faith

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Court Finds Policyholders are Entitled to Bad Faith Discovery

Insurance companies hate producing its claims guidelines, loss ratios, and other relevant documents in bad faith litigation. Recently, a Nebraska federal trial court denied Owners Insurance Company’s request to bifurcate my client’s bad faith claim from its breach of contract claim. This ruling prevents unnecessary costs and delay and will allow the insured its day … Continue Reading

Colorado Statutory Bad Faith: Doubling Down On An Insurer’s Unreasonable Delay Or Denial

In August 2008, Colorado created a statutory bad faith claim of action for first-party policyholders not only separate and distinct from a claim for common law bad faith breach of an insurance contract, but establishes a much more reasonable threshold to prevail against an insurer under Colorado Revised Statute § 10-3-1115 and Colorado Revised Statute … Continue Reading

Insurance Bad Faith Can Also Be Found When an Insurer Fails to Properly Investigate the Claim

Insurance Codes are regulated by each state, but ask any insurance company representative in any state and they will tell you it is an insurance company’s duty to place the insured’s interest ahead of the insurance company’s interests; and the proper way to handle a claim is to find coverage wherever possible.… Continue Reading

Insurance Bad Faith in South Carolina: Part 1

We are often asked by policyholders and public adjusters whether bad faith damages are recoverable against an insurance company in a particular state and what an insured must prove. Our blog has many articles related to this topic. Today I will address insurance bad faith in South Carolina.… Continue Reading

Insurance Dispute Stemming from Denial of Coverage for Stolen Baseball Card Collection Highlights Bad Faith Claims Handling

The Arizona Court of Appeals recently overturned a trial court’s dismissal of an insured’s bad faith case stemming from a disagreement with an insurance company over coverage for a stolen baseball card collection.1 As a kid who grew up collecting baseball cards, I took particular interest in this case.… Continue Reading

Payment of an Appraisal Award Does Not Foreclose Insured’s Claim for Vexatious and Unreasonable Conduct in Illinois

Often an insurer will assert that their payment of an appraisal award has satisfied their obligation under the policy such that an action for “bad faith” cannot be brought. An insurer recently raised this issue in a motion to dismiss against our client arguing that the insured’s right to bring a claim for damages under … Continue Reading

The Genuine Dispute Defense and Bad Faith

Insurers often seek to avoid liability for bad faith by asserting the “Genuine Dispute Doctrine.” Under the genuine dispute rule, an insurer’s coverage or claim decision may not be in bad faith when it mistakenly withholds policy benefits, if the mistake is reasonable and is based on a legitimate dispute as to the insurer’s liability.1… Continue Reading

Court Finds Unreasonable Underpayment of Claim Sufficient Evidence of Bad Faith to Survive Motion to Dismiss

It is generally understood that a disagreement as to scope or cost of damages is not enough to rise to the level of bad faith in first-party property damage cases. However, a recent case out of the Western District of Oklahoma held that evidence of unreasonable underpayment of claim was sufficient to survive a 12(b)(6) … Continue Reading

Bad Faith Finding in NFIP Flood Case

It is the general understanding when one brings a lawsuit on a flood claim under the National Flood Insurance Program (NFIP) that the only recovery available to the policyholder is actual damages. The policyholder is not entitled to attorney fees or bad faith (extra-contractual) damages, which might be recoverable in other first-party property damage cases. … Continue Reading

Lloyds Delaying Payment on Many Claims

Lately I have had several public insurance adjusters call me about a specific problem with Lloyds.1 The public adjuster and the Lloyds (third-party) adjuster agree on the scope and amount of damages on a claim. Then Lloyds never pays. It’s not that Lloyds refuses to pay. They just don’t pay, like for a real long … Continue Reading

Well…Another Bad Faith Case in Massachusetts

Shaun Harrington was subcontracted to install a well on the McLaughlins’ property (sorry for the bad pun in the title). Unfortunately, in July and August of 2003, this well starting pumping salt water onto the McLaughlin’s irrigation system causing extensive damage. A claim was submitted to Harrington’s insurer, American States Insurance Company (ASIC) on November … Continue Reading

Alabama Bad Faith: Part 1

I was recently approached by a policyholder inquiring whether he had a viable claim for bad faith under Alabama law. In responding to his inquiry I did quite a bit of research and will share my findings with you now in this two-part blog on Alabama Bad Faith.… Continue Reading
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