Category archive: Bad Faith

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…

We Would Like to Hear from You

There are many loyal readers of the Bad Faith Blog in St. Louis, Kansas City, Chicago, New York, San Francisco, Los Angeles, London and many places in between. In order to better meet your needs, we encourage you to contact us and tell us what you would like to see on the Bad Faith Blog….

Michigan Supreme Court: UTPA Penalty Interest Proper for Untimely UIM Benefit Payments

Summary: Insured injured in a car accident claimed underinsured motorist (UIM) benefits because the adverse driver was insufficiently insured. The insured asked the court to assess penalty interest under the Uniform Trade Practices Act (UTPA) for payments made far beyond the statutory deadline. The trial court and Court of Appeals refused  finding that penalty interest…

Iowa Supreme Court Ruling Provides Partial Relief to Comp Carrier

Summary: Toby Thornton filed a lawsuit against his employer’s insurer, American Interstate Insurance, alleging common law bad faith for denying his claim for permanent and total disability (PTD) and his request for partial commutation of benefits. The district court found that American Interstate acted in bad faith as a matter of law by opposing Thornton’s…

Homeowner’s Beware: Read Your Insurance Contract or Lose

Summary: Jack and Carolyn Brockway filed suit against Allstate after it denied coverage for losses plaintiffs suffered after a theft at their home. The plaintiffs filed claims immediately following the theft which Allstate denied more than two years later. The plaintiffs sought damages for breach of contract and for breach of the implied covenant of…

Ninth Circuit Finds California’s Genuine Dispute Doctrine Does Not Bar Bad Faith Judgment Against Excess

Summary: LMA North America, Inc. (LMA) sued National Union for breach of contract and bad faith after defendant refused to either contribute $3.75 million towards the settlement of counter-claims asserted by LMA’S competitor, Ambu, or take over the defense of the trade disparagement and false advertising claims. After settling the underlying claims above the $1M…

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