Breaking Down Bad Faith: Insurers’ Good Faith Duties and Defending Bad Faith Claims
JONES DAY PRESENTS®: Insurance Implications of the California Consumer Privacy Act
In Brodowy v. Progressive Direct Ins. Co., the Ninth Circuit affirms the district court’s granting of Progressive Direct Insurance Company’s (“Progressive”) motion for summary judgment as to claims alleging bad faith and...more
In states that haven’t passed safe harbor legislation, multiple claimants and insufficient limit claims pose certain challenges to insurers in the claims handling stage. Numerous claimants competing for severely limited...more
The vast majority of extra-contractual/bad faith cases involve a carrier’s failure to secure a release of an insured by accepting a reasonable settlement opportunity within the policy limits. The absence of a reasonable...more
Long-tail claims involve continuous or progressive injuries that occur over the course of multiple years. Often these claims occur in the context of long-latency diseases, such as those arising from asbestos exposure, or...more
On September 29, 2022, the Third Circuit Court of Appeals held, as a matter of first impression, the Pennsylvania Motor Vehicle Financial Responsibility Law (MVFRL) only requires auto insurers to seek elections of...more
Louisiana insurers who provide uninsured/underinsured motorist coverage are often asked for a “McDill tender” by a claimant, and it’s important for the insurer to know its obligations when responding to such a request....more
The United States Court of Appeals for the Eleventh Circuit recently addressed the issue of whether tendering a policy limits check on a liability policy with an overbroad release could constitute bad faith. In Pelaez v....more
Michigan auto No Fault insurance is expensive. If you’re planning on moving out of Michigan and becoming a resident of another state, you’re probably looking forward to insuring your car in your new state and cancelling your...more
The Eleventh Circuit Court of Appeals recently released two opinions involving multiple liability claims against an insured with insufficient policy limits. Both cases involved appeals from summary judgment orders in bad...more
In John Patty, D.O., LLC v. Missouri Professionals Mutual Physicians Professional Indemnity Association, No. ED106747 (Mo. Ct. App. Apr. 23, 2019), a Missouri appellate court rejected the lower court’s decision regarding...more
The Georgia Court of Appeals recently reiterated the fundamentals of contract law within the context of insurance settlement negotiations in Yim v. Carr. ...more
In Century Surety Company v. Dana Andrew (Dec. 13, 2018), the Nevada Supreme Court issued an opinion regarding whether, under Nevada law, the liability of an insurer that has breached its duty to defend, but not acted in bad...more
In Summit Insurance Company v. Stricklett, — A.3d —, No. 2017185APPEALPC12536, 2019 WL 190358, (R.I. Jan. 15, 2019), the Supreme Court of Rhode Island held that – similar to many jurisdictions – the duty to act in a...more
Progressive recently settled a bad faith lawsuit with the guardians of a child injured in a car accident driven by a Progressive policyholder, Earl Lloyd. Progressive faced liability for an underlying judgment in excess of...more
In Madrigal v. Allstate Indemnity Co., Cause No. 16-55830 (9th Cir. June 15, 2017), the Ninth Circuit upheld a jury award assessing $14 million in bad faith damages, even though it was unclear whether the insurer could have...more
An Illinois trial court recently addressed the issue of whether an insurer exhausted its limits of liability in paying nearly $90 million for an insured’s defense and indemnity associated with asbestos bodily injury claims. ...more
Unfortunately, insurance requirements in contracts are not easy to understand. The language used in insurance requirements is not always intuitive, but we all know that the consequences of not having the right insurance can...more