Bad Faith Litigation Improper While Insurer Waiting on MSPRC Demand Letter

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Legal Alert: Wilson v. State Farm Mutual Automobile Insurance Company (U.S. Dist. Ct. W. Kentucky, 3:10-CV-256-H) suggests the courts are finally starting to appreciate the frustrations of the MSP recovery process and the additional risks it imposes on settling insurers and self-insureds. The Court ruled that no bad faith action was allowed when the insurer was simply waiting on the MSPRC demand letter before issuing settlement check.

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