bad faith News

Insurer Paid Claim to Avoid Bad Faith; Reimbursed Because of Misrepresentation

The 10th Circuit Court of Appeals endorsed a clever way for an insurer to avoid a bad faith claim where there were potential misrepresentations in the policy application. In Evanston Insurance Company v. Aminokit Labs, Inc., the court affirmed a …

Insurer’s Quick Investigation of Exotic Dancer’s Claim Costs it More Than $5.4 Million

In November 2010, Kailee M. Higgins downed 15 shots of tequila during her Saturday night shift as a dancer at Centerfolds II in Worcester, Mass. She was only 20 at the time. Higgins texted a friend that she was “maadd …

7th Circuit: Appraisal Should Have Ended Dispute Over Roof Replacement

When managers of the Villas at Winding Ridge in Indianapolis asked a contractor to assess the condition of the 33 roofs in the condominium complex, they learned that a hailstorm the year before had damaged soft metal parts, fascia and …

Viewpoint: Equitable Subrogation Useful Tactic When Insurer Won’t Settle

Every policyholder will likely face a scenario where its primary insurer refuses a settlement offer within limits. The primary insurer is potentially liable for that excess verdict if it acted in bad faith by refusing to settle within limits. Sometimes, …

3rd Circuit: Policy to Limit Extended Transportation Expenses May be Bad Faith

Kyle and Marie Stechert say they rushed to buy another car after their vehicle was “totaled” in an accident because their insurance carrier refused to keep paying for their rental vehicle. The new car was twice as expensive as the …

Texas Supreme Court Clarifies Bad Faith in Appraisal Process

An insurer’s payment of the appraisal value after disputing a claim does not establish that it was liable, nor does that payment prevent a policyholder from pursuing penalties under the Prompt Payment of Claims Act, a split Texas Supreme Court …

Hotel Owner Sues Insurance Company After Vegas Mass Shooting

LAS VEGAS — More than 4,000 people are seeking damages from MGM Resorts International related to the Las Vegas Strip mass shooting that left 58 people dead, the casino giant said in a lawsuit alleging its insurance company has failed …

Insurer Liable for Bad Faith Mistake of Law: Viewpoint

A recent ruling from the District of Massachusetts suggests that insurers are responsible for training their claims handlers to know and understand the law affecting their insureds’ liability – and that the insurer may be held liable for bad faith, …

Jury to Decide If Carrier Risked Trial Because It Had Nothing Left to Lose

A federal judge in Rhode Island has cleared the way for a trial to decide whether Columbia Casualty Insurance, in bad faith, put its own interest over its policyholder’s by gambling on a trial instead of settling a claim that …

Calif. Appellate Court Affirms $1 Million Bad Faith Judgment Against Geico

GEICO General Insurance Co. refused an offer to settle Michael Mazik’s underinsured motorist claim for $50,000. Instead, the claim will cost the insurer more than $1.3 million. On Friday, a panel of the California 2nd District Court of Appeal affirmed …