Archives: Bad Faith

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Federal and State Court Split on Procedure for Alleging Bad Faith

Minnesota Statute section 604.18, commonly known as Minnesota’s Bad Faith Law, permits an insured to add a claim to recover taxable costs based on an insurance company’s bad faith denial of policy benefits. The procedure for bringing a claim under section 604.18 differs from most states. Generally, an insured is strictly prohibited from including a … Continue Reading

Florida Investigative Report Highlights Florida Legislators Taking Away Policyholder Protections

Reporter Steve Andrews ran a televised story highlighting that some Florida legislators are listening to insurance company lawyers and lobbyists rather than taking care of their constituents in Consumers Would Take Hit If Insurance Lobby Gets Its Way, and Change in Insurance Law Would Take Away Consumers’ Day in Court. The story references Florida House … Continue Reading

Statutory Penalties Plus Punitives and No Caps

The Sixth Circuit Court of Appeals in Tennessee recently ruled and reaffirmed that a Tennessee policyholder is not limited to the statutory extracontractual remedy for an insurer’s bad faith refusal to pay on a policy. She may also be awarded punitive damages under common law. And, further, the Tennessee legislative cap on punitive damages is … Continue Reading

Delays, Denials and Underpayments Occur When Insurance Companies Are Not Held Accountable—-What Are Florida Legislators Thinking?

Florida legislators have introduced legislation allowing insurance companies to delay, deny, and underpay Floridians’ insurance claims without accountability. National Flood insurance has no such good faith standards nor accountability and the above news story shows how Floridians can be expected to be treated if the Florida legislature passes anti-consumer laws eliminating protections that have been … Continue Reading

Property Insurance Claims Procedures Should Be Transparent and Uncovered in Market Conduct Studies

Merlin The Moose is a client favorite at the Chicago Merlin Law Group office. We won him at a charity auction last year. He also led me to some creative research uncovering a problem with market conduct studies and the transparency of property insurance claims procedures many insurers keep hidden from their customers and insurance … Continue Reading

Insurance Company’s Long Duration of Negotiations and Stalling Tactics Supports Plaintiff’s Claim for “Bad Faith”

Illinois’ solution to an insurance company’s delay, deny and defend tactics is section 155 of the Illinois Insurance Code, which provides an extra-contractual remedy to policyholders whose insurer’s refusal to recognize liability and pay a claim under a policy is vexatious and unreasonable.1 Section 155 of the Code is intended to aid the insured and … Continue Reading

Insurance Lobbyist Describes His Personal Story of Insurance Company Bad Faith

Insurance lobbyist Scott Johnson is a bulldog advocate for the insurance industry. He usually is trying to make policyholders, their attorneys or anybody other than the insurance claims executives and adjusters look bad to support the insurance industry’s legislative efforts. I fell out of my chair when he described his own personal claim and why … Continue Reading

Can My Insurance Company Stop Me From Making A Bad Faith Claim By Merely Pointing To Its Own Inspections And Damages Estimate?

In a previous post, Insurance Company Acting in Bad Faith? Pennsylvania Protects Policyholders if Facts Are Plead, I discussed the importance of Pennsylvania’s insurance bad faith statute1 and how insurers routinely attempt to avoid litigating the substance of those bad faith claims by filing motions to dismiss alleging pleading deficiencies. Recently, the District Court for … Continue Reading

Idaho Denied or Delayed Property Damage Claims

During the recent Summer 2018 RMAPIA Conference, Larry Bache and I had an opportunity to discuss regulations and remedies available to first party policyholders within the RMAPIA states. Continuing that discussion, this post will review the legal remedies available to Idaho policyholders enduring the frustration of a delayed or denied insurance claim. Fortunately, Idaho provides … Continue Reading

Rutgers Law Professor Debunks Notion of Increased Premiums With New Jersey Fair Conduct Act

In a recent op-ed article published in the Star Ledger, Rutgers Law Professor Jay Feinman debunked the myth that insurance companies have been using for decades to prevent good faith claims handling bills from passing through the legislature. As Feinman noted, insurance companies argue that the Insurance Fair Conduct Act (IFCA) is unnecessary and would … Continue Reading

Insurance Companies Must Perform in Good Faith Regardless of Their Customer’s Imperfect Actions

Insurance companies routinely argue for immunity from their wrongful actions because acts of their customers are not perfect following a loss. Policyholders are not claims specialists. Policyholders generally are not in the insurance claims business much less the civil litigation business which the insurance industry is the number one participant by far.… Continue Reading

Court Allows Consequential Damages Claim to Proceed

Tiffany Tower Condominium LLC sustained damages during Superstorm Sandy. In November 2012, the insured filed a claim with their insurer, Insurance Company of Greater New York, for damages sustained during the storm. Greater New York paid the claim out in December 2012. In September 2014, Tiffany Tower submitted a supplemental claim to Greater New York … Continue Reading

Insurance Company Acting in Bad Faith? Pennsylvania Protects Policyholders if Facts Are Plead

Policyholders need insurance laws which protect them if their insurance company delays, denies or wrongfully adjusts their claim. Attorneys have long recognized that insurance law is a specialized niche area of the law with strange nuances. Attorneys not dedicated to this field of law may fail to appreciate or may even miss small but important … Continue Reading

Wyoming Denied or Delayed Property Damage Claims

Property insurance is purchased to help protect an insured with the consequences of a natural disaster or serious storm. Far too often we hear from confused policyholders when their insurance carrier attempts to delay payment of a valid covered claim or unreasonably delays the payment of covered benefits. Fortunately, Wyoming provides several legal avenues to … Continue Reading

Does An Insurer Waive Privilege for Attorney-Client Communications in the Claims File By Denying Bad Faith?

Merlin Law Group is closely monitoring a case pending before the South Carolina Supreme Court to see how it answers the question: “Does South Carolina law support application of the ‘at issue’ exception to the attorney-client privilege such that a party may waive the privilege by denying liability in its answer?”… Continue Reading
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