Archives: Bad Faith

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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

New Jersey Senate Passes Bad Faith Bill

Recently, the New Jersey Senate passed S-2144, entitled the New Jersey Insurance Fair Conduct Act. While the bill still must go through the Assembly and be signed by the Governor, this is much welcomed news by insureds and their representatives. Since 1993, insureds have had basically no right to bad faith claims against their insurers … Continue Reading

Colorado Supreme Court Clarifies Unreasonable Delay or Denial Statute

The Colorado Supreme Court issued two opinions favorable to Colorado policyholders earlier this week: American Family Mutual Insurance Company v. Barriga; and Rooftop Restoration, Inc. v. American Family Mutual Insurance Company. Both cases address the unreasonable delay or denial of insurance benefits statute in Colorado. This post addresses the Barriga opinion, and the Rooftop Restoration, … Continue Reading

Bad Faith Claim Investigation May Subject Insurance Company to Private Remedies Under Consumer Protection Law

Last month, a New York Supreme Court affirmed that insurance companies are subject to that state’s consumer protection law, General Business Law § 349. In 37 West 24th Street, LLC v. Seneca Insurance Company, Inc., the trial court denied Seneca Insurance Company’s motion to dismiss the plaintiff’s claim under that statute.1… Continue Reading

An Unlucky Day? Friday, April 13, 2018, the Texas Supreme Court Issued a New Opinion in USAA Texas Lloyds v. Menchaca

On Friday, April 13, 2018, by avoiding black cats, ladders, and breaking mirrors, seven members of the Texas Supreme Court1 managed to issue a new, sixty-six page opinion in USAA Texas Lloyds Company v. Menchaca (“Menchaca II”).2 Withdrawing its April 7, 2017, opinion3 —”Menchaca I”—the court unanimously reaffirmed the five legal principles and rules announced … Continue Reading

Individual Insurance Adjusters in Washington May Be Personally Liable for Statutory Bad Faith As Well As Violations of Washington’s Consumer Protection Act

Last month, a Washington State Court of Appeals ruled that individual insurance adjusters may be personally liable for violations of Washington’s bad faith statute, RCW 48.01.030. The court also ruled that adjusters may be personally liable for violations of Washington’s Consumer Protection Act, RCW 19.86.020.1… Continue Reading

Better Late Than Never? Don’t Think So – Voluntary, Untimely Payment of Benefits Does Not Absolve Carrier from Liability for Bad Faith in Florida

It has been over 30 years since Florida lawmakers enacted section 624.155, which was designed to provide a civil remedy when an insurer fails to settle their policyholder’s claim in good faith or commits any one of the unfair claims handling practices identified in section 626.9541(1)(i). Yet, to this day, questions still arise on one … Continue Reading

Time Limit Considerations as Colorado Approaches the One Year Anniversary of the May 8, 2017 Hailstorm

  With less than sixty days until the one-year anniversary of the most expensive hailstorm in Colorado history which hammered west metro Denver on May 8, 2017, many individuals, business owners, and community associations members continue the difficult task of negotiating with insurance companies in an effort to return property to pre-storm conditions.… Continue Reading

Nearly Ten Years Later, Hurricane Ike’s Stormy Winds Are Still Churning in the Texas Supreme Court — USAA Tex. Lloyds V. Menchaca

On April 7, 2017, the Texas Supreme Court in USAA Tex. Lloyds Co. v. Menchaca,1 answered several issues that had continually swirled around litigation arising out of Hurricane Ike policy disputes. Unresolved issues included among others: Whether an insured is required to obtain a breach of contract finding as a prerequisite to a recovery for … Continue Reading

Merlin Law Group Webinar – How Rancosky and other Pennsylvania Regulations Help Put You in the Adjustment Driver Seat

Join Robert Trautmann and myself, on February 16, 2018, at 2:00 pm for a free one-hour webinar to discuss the Supreme Court of Pennsylvania’s recent decision in Rancosky v. Washington National Insurance Company,1 which upheld the current bad faith standards and specifically noted that an insured need not prove malicious intent to prevail on a … Continue Reading

Puerto Rico: Sanctions Will Apply for Bad Faith and Delays in Insurance Claims

The 90-day period to resolve claims made for damages caused by Hurricane Maria may expire soon. To protect insureds from the bad faith and delay of the insurer, Puerto Rico’s Insurance Code provides under Art. 27.162, that insurance companies should be diligent in the processing of claims within the 90-day period for claims to be … Continue Reading
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