bad faith News

Kentucky Supreme Court Finds No Bad Faith as a Matter of Law

The Kentucky Supreme Court in Hollaway v. Direct General Ins. Co. Mississippi Inc., 497 S.W. 3d 733 (Ky. 2016), recently affirmed summary judgment that was granted in favor of the insurance company, finding that the plaintiff did not present a …

Texas High Court Establishes Clear Rules for Breach of Contract, Bad Faith Suits Against Insurers

In an effort to clear up confusion as a result of past decisions, the Texas Supreme Court announced five rules that “address the relationship between contract claims under an insurance policy and tort claims under the Insurance Code.” The clarification …

Failure to Re-Evaluate is Bad Faith

In a self-evident decision, the Eighth Circuit Court of Appeals recently held that an insurance company’s failure to re-evaluate a case value after the trial court eliminated a key affirmative defense justified a bad faith failure to settle verdict. The …

Mastering the Blue Ridge Settlement Reservation of Rights, Part 2

A valid Blue Ridge reservation of rights requires more than the initial reservation of rights that warns the insureds that a later settlement payment may become subject to a reimbursement claim. In addition to that initial reservation of rights letter, …

Mastering the Blue Ridge Settlement Reservation of Rights, Part 1

For decades, California insurers have been told they have a duty to accept reasonable settlement demands within their policy’s limits. As the California Supreme Court emphasized in Johansen v. Cal. State Auto. Assn. Inter-Ins. Bureau, 15 Cal.3d 9, 16 (1975), …

Florida High Court Clarifies Uninsured Motorist Bad Faith Principles

The Florida Fifth Circuit Court of Appeals issued a ruling that the determination of the full extent of damages in an uninsured motorist bad faith case should be adjudicated in the subsequent bad faith lawsuit rather than in the UM …

Implementing Claims Best Practices Requires Careful Thought

While having claims best practices can benefit an insurer, it’s important that claims management review and evaluate their reasonableness on a regular basis, according to Kevin Quinley, founder and principal of Quinley Risk Associates. In a recent Claims Journal podcast …

Eleventh Circuit Criticizes District Court for Focusing on Bad Faith Set-up Conduct

In Moore v. GEICO General Ins. Co., 2016 WL 736824 (11th Cir., Feb. 19, 2016), the United States Eleventh Circuit Court of Appeals reversed a District Court grant of summary judgment in favor of GEICO in a bad faith set-up …

The Quest for the Perfect Claims File

Understanding the difference between objective and subjective data is of utmost importance when handling a claim, said Don Myles, a partner with the Arizona law firm of Jones, Skelton and Hochuli. Myles, a presenter at the annual Combined Claims Conference …

Bad Faith Suits Begin Targeting Coverage Counsel

A new trend has emerged in which coverage counsel are being sued by third parties for aiding and abetting insurer clients’ bad faith, according to a panel session on the subject hosted by the American Bar Association’s annual Tort Trial …