News & Analysis as of

Bad Faith Breach of Duty Insurance Industry

Adams and Reese LLP

Bad Faith on the Bayou

Adams and Reese LLP on

The last few years have brought unprecedented hurricane seasons in the Gulf South, with Louisiana’s coastal communities bearing much of the impact. Those storms brought property damage; that property damage brought insurance...more

Rumberger | Kirk

Eleventh Circuit Reverses its Prior Reasoning Finding: Settlement Agreements can now be Basis for a Bad Faith Claim

Rumberger | Kirk on

In Florida, an excess judgment is when the judgment in the case exceeds the policy limits. The excess judgment rule requires an injured plaintiff to obtain an excess judgment before prosecuting a bad faith claim against an...more

Wiley Rein LLP

Claims under Illinois False Claims Act Not Uninsurable under Illinois Law

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The Northern District of Illinois has held that claims brought under the Illinois False Claims Act (“IFCA”) are not uninsurable as a matter of Illinois law. The insured, a telecommunications company with $2 million in...more

Jaburg Wilk

An Inadequate Investigation Exposes Arizona Insurers to Bad Faith Only If the Insured Proves Additional Investigation Would Have...

Jaburg Wilk on

Plaintiffs often allege an insurer breached the duty of good faith and fair dealing by conducting an unreasonable and/or an inadequate investigation. But, Arizona courts have held for over 30 years that an insurer’s...more

Wiley Rein LLP

Insured Barred From Settling Without Insurer’s Consent Absent Breach of Duty to Defend But Insurer Must Exercise Good Faith in...

Wiley Rein LLP on

The United States District Court for the District of South Dakota, applying South Dakota law, has held that an insured healthcare system was barred from settling without its healthcare liability insurer’s consent where the...more

Sheppard Mullin Richter & Hampton LLP

Anti-Slapp Statute Does Not Apply To Allegations That Insurer Improperly Refused To Provide Cumis Counsel

Miller Marital Deduction Trust v. Zurich American Insurance Company, — P.3d –, 2019 WL 5304862; First Appellate District Court of Appeal, Division Three, Case No. A155398 (October 21, 2019). In Miller Marital Deduction...more

Carlton Fields

California Appellate Court Takes Equitable Subrogation to the Excess

Carlton Fields on

In California, where a primary insurer is found to have unreasonably failed to settle within its policy limits, and a judgment is later entered against their insured in excess of those limits, the primary carrier can be...more

Zelle  LLP

How Appraisal Protects Against Texas Insurance Code Abuse

Zelle LLP on

Insurance practice in Texas has become somewhat rote. Typically, a petition is filed against both an insurance company (that is often not based or incorporated in Texas) and a local adjuster. In addition to a breach of...more

Pullman & Comley, LLC

Can Insurers Sue for 'Reverse Bad Faith'? Allowing claims would restore strategic balance in policy disputes

Pullman & Comley, LLC on

The insurance relationship is contractual, but when policyholders claim insurers failed to honor their obligations, they typically invoke the tort of "bad faith." When courts try to explain this anomaly, they cite features of...more

Pullman & Comley, LLC

Cancel My Reservation! Pennsylvania Sows Confusion Over Consent-to-Settle Clauses

Pullman & Comley, LLC on

This summer, the Supreme Court of Pennsylvania addressed an important question that has divided other courts: if an insurer defends a claim subject to a reservation of rights, may the insured settle the claim without the...more

Zelle  LLP

5th Circ. Highlights Importance Of Claim Investigation

Zelle LLP on

Any insurance lawyer practicing in Texas knows that in order to show an insurance company has breached its duty of good faith and fair dealing to its insured, the insured must show “there is no reasonable basis for denial of...more

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