Author archive: badfaithblog

Insurer’s Conduct Created Issues of Fact as to Non-Party’s Right to Bring Bad Faith Claim

Summary: The Oklahoma Supreme Court held that whether a property owner under a contract for deed is owed a duty of good faith and fair dealing by an insurer of previous owner’s insurance policy is a question of fact. Hensley v. State Farm Fire and Casualty Company, 398 P.3d 11 (Ok. 2017) State Farm Fire…

Insurer’s Conduct in Investigating and Settling Claim against Insured Did Not Constitute Bad Faith

Summary: The West Virginia Supreme Court of Appeals found an insurer, who defended and settled claims brought by downhill homeowners against its insured, a residential construction company, was not liable for first party common law bad faith or statutory bad faith as a matter of law. State ex rel. State Auto Property Insurance Companies v….

South Dakota Provides Remedy for Deceit by Insurer

Summary: Charter Oak Insurance was punished for willfully deceiving a claimant about coverage for her UIM claim. Defendant Charter Oak was the commercial insurer of Billion Empire Motors, an auto dealership in South Dakota.  Billion loaned a car to Peterson who had an accident that severely injured her passenger, Dziadek.  Peterson had $100,000 worth of…

Insureds Did Not Establish Consequential Damages to Support Claim for Breach of the Implied Covenant of Good Faith and Fair Dealing

Summary: The Tenth Circuit Court of Appeals affirmed the trial court’s grant of summary judgment in favor of the insurer, USAA, finding the insureds failed to establish damages to support their claim for breach of the implied covenant of good faith and fair dealing. Specifically, the court found the insureds failed to establish unusual emotional…

Missouri Appellate Court Holds Rental Car Company Is Not an Insurer and Not Liable for Bad Faith

Summary: A motorist, who was injured in an automobile accident with a rental car, brought a garnishment action against the renter and car rental company, seeking the $25,000.00 limit provided by the Motor Vehicle Responsibility Law (MVFRL). The renter filed a cross-claim against the car rental company alleging bad faith failure to settle and breach…

Pennsylvania Supreme Court Holds Pennsylvania Law Does Not Require a Policyholder to Prove Insurer’s Self-Interest or Ill Will to Succeed on a Bad Faith Claim

Summary: Insured LeAnn Rancosky, who was employed as a letter carrier for the United States Postal Service, purchased a “cancer insurance” policy from Washington National Insurance Company. Rancosky’s employer automatically deducted her bi-weekly premium payments from her paycheck. The policy contained a “waiver-of-premium” provision, which excused premium payments in the event Rancosky became disabled due…

Washington Court of Appeals Finds No Preclusion for Bad Faith Claim After Resolution of UIM Benefits Action

Summary: Anastasia Fortson-Kemmerer (“Plaintiff”) sued Allstate Insurance Company (“Allstate”) to recover for bad faith and violation of the Insurance Fair Conduct Act (“IFCA”) for its actions when investigating her underinsured motorist (“UIM”) coverage claim. Allstate moved for summary judgment on the affirmative defense that Plaintiff’s previous action to enforce her UIM policy provisions operated as…

Alabama Supreme Court Dismisses Appeal of Bad Faith Claim Dismissal

Summary: Lamar Ragland sued State Farm Mutual Automobile Insurance Company (State Farm) for State Farm’s alleged bad faith in failing to pay an underinsured motorist (UIM) claim. Ragland was injured in an automobile accident by an underinsured motorist in January 2012 and claimed that he was entitled to UIM benefits from State Farm for the…

Aaron French Speaking at The Knowledge Group’s Webinar Titled, “Bad-Faith Claims and Its Impact on Insurance Companies”

I am pleased to be speaking at the upcoming webcast titled, “Bad-Faith Claims and Its Impact on Insurance Companies” on Thursday, October 19, 2017 @ 12:00 PM to 1:30 PM (ET). Key topics include: •    The Bad Faith Set-Up o    Legal Primer o    Common Tactics and Red Flags o    Recent Case Law •    Bad Faith…

Montana Supreme Court: $300,000 Consent Judgment Proper

Summary: The seller of a home was insured under a Homeowner’s Policy and a Renter’s Policy issued by United Services Automobile Association (USAA). Past basement problems, including flooding, were not disclosed by the seller. The basement flooded after the buyer took possession, and buyer sued the seller. After USAA denied coverage, the parties reached a…

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