The California Appellate Court recently ruled in a published opinion that an insurer cannot escape liability for a breach of the implied covenant of good faith and fair dealing claim (bad faith), because its coverage position was based an outside consultant’s findings. In the case, Fadeeff v. State Farm General Insurance Company,1 the court considered State Farm’s bold contention that an insurer should automatically be considered to have acted in good faith if its claim decision is based on an independent expert’s conclusions.
Continue Reading Can an Insurer Avoid Bad Faith Liability by Claiming it Relied on the Opinion of an Outside Consultant?
