News & Analysis as of

Bad Faith Auto Insurance Insurance Industry

Who’s Acting In Bad Faith Now? Federal Court Slams Policyholder’s Counsel on Fee Petition

Plaintiff Bernie Clemens was injured in a motor vehicle accident in August 2009. Clemens’ attorney helped him recover $25,000 in a supplementary underinsured motorist (SUM) claim, and then sued Clemens’ insurer under...more

District of Colorado Grants Summary Judgment for Insurer on Common Law (But Not Statutory) Bad Faith Claim Where No Evidence...

MacKinney was involved in a motor vehicle accident and sought underinsured motorist coverage from Allstate. Allstate insured MacKinney’s vehicle under three policies. The total UIM coverage under the policies was $150,000,...more

Bottini v. GEICO: Parties to Bad Faith Action Not Bound by $30.8 million-dollar Verdict Without Appellate Review

For years, when a bad faith action was brought pursuant to a jury verdict in excess of policy limits in the underlying UM claim, everyone assumed the jury verdict was binding in the bad faith action. Then, Bottini v. GEICO...more

UM, Wait a second! – Rekindled Exposure for Bad Faith Uninsured Motorist Claims in South Carolina

by Nexsen Pruet, PLLC on

Recently, the United States District Court held a plaintiff can maintain a claim for bad faith handling of Uninsured Motorists Coverage (“UM”) in the District of South Carolina. In Tucker v. Peerless Insurance Company, the...more

Florida Appellate Court Rejects Jury’s Bad Faith Verdict

by Carlton Fields on

It feels like a black swan event: last month, in GEICO Gen. Ins. Co. v. Harvey, No. 4D15-2724 (Fla. Ct. App. Jan. 4, 2017), a Florida appellate panel unanimously overturned a jury verdict, on the ground that the plaintiff’s...more

Florida 4th DCA Reiterates Insurers Negligence Not Enough to Sustain Bad Faith Claim

by Rumberger Kirk & Caldwell on

Directs Judgment to be Entered in Favor of Insurer - In GEICO v. Harvey, (Fla. 4th DCA Jan. 4, 2017), Florida’s Fourth District Court of Appeal held that the trial court erred in denying the insurer’s motion for directed...more

Eleventh Circuit Clarifies “Permanency” Requirement under Florida Bad Faith Statute

by Carlton Fields on

In Cadle v. GEICO Ins. Co., Case No. 15-11283 (11th Cir. Sept. 30, 2016), the Eleventh Circuit held that GEICO had not acted in bad faith when it failed to settle a claim after the insured did not provide any evidence of...more

Eleventh Circuit Affirms Judgment Notwithstanding the Verdict in UIM Bad Faith Case

On Friday, September 30, 2016, the Eleventh Circuit Court of Appeal affirmed a renewed motion for judgment as a matter of law that had been granted by the Middle District Court of Florida in a uninsured/underinsured motorist...more

Court Upholds Cancellation for Failure to Exclude or Add Driver on Request as a “Substantial Increase in the Hazard Insured...

In Mills v. AAA Northern CA, NV and Utah Ins. Exch. (No. C072644, filed 9/20/16), a California appeals court held that an insurer’s cancellation of a personal auto policy was valid where based upon the insureds’ failure to...more

When a Policy Limits Offer is Not Enough: A Cautionary Tale of a Failure to Settle Case

by Cozen O'Connor on

In a recent unpublished decision, the California Court of Appeals upheld a $3 million judgment against an auto liability insurer that rejected proposed language in a settlement agreement, notwithstanding the insurer’s policy...more

Eighth Circuit to insurers: Settlement evaluation must constantly adapt to litigation developments

by Dentons on

A recent decision of the US Court of Appeals for the Eighth Circuit taught an insurer a costly lesson about trying to avoid extra-contractual liability: Insurers must constantly reevaluate their settlement position throughout...more

The Duty to Follow-up Part II: When The Underlying Litigation Changes

by Cozen O'Connor on

Last month, we discussed the duty to follow-up in the context of an offer to settle made by a tort claimant and how neglect of that duty cost an insurer dearly by converting a claim that could have been settled for $25,000...more

The Duty to Follow-up: How A $25,000 Offer To Settle Turns Into A $7 Million Loss

by Cozen O'Connor on

In many states, an insurer not only has a duty to timely communicate with its insured and respond to demands for settlement by a claimant asserting a claim regarding the adjustment of a loss, that duty may also include the...more

Sloppy Claims Handling Exposes Insurer to Bad Faith Claims

by Carlton Fields on

A Geico insured, with a $10,000/$20,000 liability policy, was involved in a three-car collision resulting in the death and serious injury of two occupants in one of the vehicles. The insured reported the accident to Geico the...more

Florida Supreme Court Holds that UM Insured is Entitled to Liability Determination and Full Extent of Damages Before Filing a Bad...

by Cozen O'Connor on

Petitioner Adrian Fridman (“Fridman”) was injured in an automobile accident involving an underinsured motorist. Fridman filed a claim with his uninsured/underinsured (UM) insurance carrier (Insurer) for the $50,000 limits of...more

Kansas: Safe harbor for insurer faced with settlement demand to only one insured

by Dentons on

What should an insurance company do when liability of the insured is clear, the damages clearly exceed the limits, and the claimant sends a settlement demand that would exhaust policy limits while releasing only one out of...more

Eleventh Circuit Finds No Bad Faith in Multiple-Claimant Claims-Handing Situation

by Cozen O'Connor on

In a new decision, Mesa v. Clarendon National Ins. Co., 2015 WL 5059496, 2015 U.S. App. LEXIS 15203 (11th Cir., Aug. 28, 2015), the Court of Appeals found that the insurer’s claims-handling of multiple claimants did not rise...more

Insurance Recovery Law - August 2015

Insured's Notice to Broker Satisfied Policy Requirements, Illinois Court Rules - Why it matters: An insured's notice to its broker satisfied the policy's notice requirements, an Illinois appellate panel recently...more

California Court Rejects Bad Faith Claim

In Graciano v. Mercury General Corporation, 2014 Cal. App. LEXIS 1028 (Cal. App. Oct. 17, 2014), the California Court of Appeal had occasion to consider whether an insurer may be held liable for bad faith for unreasonably...more

Bad Faith Sentinel - November 2014

In This Issue: - Southern District of California Denies Motion to Dismiss Bad Faith Claim in Homeowners Policy Dispute - Northern District of Indiana: No Bad Faith Where Insurer Has a Rational Basis for its...more

Winning Isn’t Everything: Insurer’s Arbitration Success Does Not Prevent Claim for Bad Faith Failure to Settle

by Pullman & Comley, LLC on

After he was rear-ended by a driver without insurance, the plaintiff in Maslo v. Ameriprise Auto & Home Insurance, No. B249271 (Cal. App. Ct. June 27, 2014) incurred $64,000 in medical expenses, but he filed a claim with his...more

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