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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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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