Tag Archives: Good Faith Duty

An Insurer’s Participation in Appraisal and Payment of Appraisal Award Does Not Necessarily Preclude a Statutory Bad Faith Claim

Just a few weeks ago, the Fort Myers Division of the United States District Court for the Middle District of Florida handed down its memorandum opinion on the insurer’s motion for summary judgment in Royal Marco Point I Condo. Ass’n, Inc. v. QBE Ins. Corp., No. 3:07 CV 16, 2010 WL 2757240 (M.D. Fla. July … Continue Reading

State Farm Recognizes that Good Faith Requires It to Inform and Assist the Policyholder to Fully Obtain All Benefits

This is a continuation of State Farm Agrees With Chip Merlin Regarding Claims Handling Obligations and State Farm Claims Handling Standards. These are some of the standards, which are the recognized insurance industry obligations of good faith claims handling, that State Farm teachs to its claims adjusters.… Continue Reading

A Confusing Oral Argument in QBE vs. Chalfonte Baffles the Florida Supreme Court Regarding First Party Bad Faith

Florida Supreme Court justices seemed as bewildered as I when policyholder’s counsel explained last Thursday that he was not arguing a "bad faith" case. I will be the first to say that a "bad faith" case is really a lack of "good faith" case since the standard is whether the insurance company breached the obligation … Continue Reading

Insurance Companies Have a Good Faith Obligation to Share Evaluations of Damage and Engineering Reports With Their Customers

Imagine a situation where a butcher sliced some meat you ordered, weighed your cut, and then told you that you owed $43.79—but refused to tell you how he calculated the price. Would you simply agree and pay the butcher? Of course not. But this is what happens all the time when insurers refuse to turn … Continue Reading

Touché! Parks Chastain Responds to the Challenge of a Property Insurer’s Obligation to Make “Partial Payments” of Undisputed Amounts Owed

Where would I be if insurance companies paid claims fully and promptly or if those smart insurance defense attorneys were not scheming ways to protect their clients when they failed to do so? That answer this Sunday afternoon is probably with my sailing buddies, and not editing a complaint and researching the concept of “materiality” … Continue Reading

What does a Property Insurance Coverage Policyholder Lawyer Think About the Day After a Def Leppard Concert?

How about, “Where’s the Advil?” My wife commented Friday night that all my “edgy” friends must also enjoy this genre of rock because the concert was sold out. Just as she made that remark, a thunderstorm struck. Being the nerdy insurance coverage lawyer that I am, and even though my thoughts were straying just a … Continue Reading

Bad Faith Claims of Delayed Payment Can Be an Independent Basis for Bad Faith Even if Partial Denial is Correct

Claim delay and failure to timely pay undisputed benefits are the most frequent complaints of policyholders. Many understand when an insurer cannot pay legitimately disputed amounts following an honest, prompt and thorough good faith investigation. But what happens when portions of a loss can be paid but are not for reasons that are not based on … Continue Reading

A Common Law Remedy For Lack Of Good Faith And Fair Dealing Is Before The Florida Supreme Court

Yesterday, we filed an amicus curiae brief on behalf of United Policyholders in the Florida Supreme Court. This type of legal argument is often called a “Friend of the Court” brief because it is not filed by a party to the lawsuit, but it is filed by a person or entity with an interest in the outcome … Continue Reading

Property Insurers Have An Obligation To Investigate All Facts Supporting Coverage

An attorney from another law firm asked me whether an insurer is obligated to investigate facts supporting coverage in a property insurance coverage dispute. It is common for colleagues to share information and help when they can. It seems that the more one shares, the more one receives –usually with compound interest.… Continue Reading

Wrongful Claims Practices Which Insurers Recognize that They Should be Punished (Part One)

Don’t you think Madoff would agree that society should throw a financial swindler in jail? I imagine most insurance executives think there should be consequences if they do the same thing. Shouldn’t they agree that claims management practices which intentionally underpay must be punished by law as a matter of public policy? Who would not … Continue Reading

Increased Insurance Company Profits Should Never Be at the Cost of Good Faith Claims Handling

I was recently retained by a hotel management company regarding problems associated with their Hurricane Ike insurance claim. Yesterday, during an Examination Under Oath taken in that matter by Liberty Mutual Insurance Company, the CEO of the management company handed me an article indicating that the property and casualty insurance company had a profitable year, despite … Continue Reading