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Bad Faith Policy Terms

Presley & Presley

Buffet of Bad Faith Issues

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Standards for extra-contractual recovery vary from state to state to some extent. While the standard for recovery may differ, evidentiary, discovery and interpretation issues overlap and arise in many bad faith cases...more

Lowenstein Sandler LLP

Insurer Bad Faith: New York Cracks Down on ‘Wait and See’ Claims Handling

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Insurer bad faith may take many forms. While policyholders are sometimes familiar with the quintessential bad faith fact pattern – a liability insurer’s failure to settle within policy limits – the New York Appellate Division...more

Wiley Rein LLP

Insurers Need Not Prove Prejudice to Deny Coverage for Failure to Provide “Prompt Written Notice” Under a Claims-Made Policy

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The United States Court of Appeals for the First Circuit, applying Massachusetts law, has held that an insurer does not need to prove that it was prejudiced by the insured’s untimely notice to deny coverage under a...more

Cozen O'Connor

The Time Limited Demand and Duty to Settle: Common Themes and Advising Your Insurer Client How to Avoid Bad Faith

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There must be something in the water or the plaintiff’s bar just had a conference where the keynote speaker addressed strategies for putting pressure on insurers by issuing time-limited demands (“TLD”) because we have been...more

Sands Anderson PC

Virginia’s New Bad Faith Law: What Insurers Need to Know

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On July 1, 2024, new Virginia Code § 8.01-66.1 became effective and created a new bad faith cause of action that can be significant for underinsured or uninsured (“UIM”) carriers....more

Wiley Rein LLP

Capacity Exclusion Bars Coverage for Settlement Involving Director’s Self-Dealing While Acting in Dual Capacity as Shareholder and...

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A New Jersey appellate court, applying New Jersey law, has held that the capacity exclusion in a directors and officers policy precluded coverage for a settlement of lawsuits alleging that an insured director defrauded a...more

Cozen O'Connor

A New Era for Extra-Contractual Damages in Oregon - What We Know and What We Are Learning Six Months Since Moody

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The start of 2024 marked the end of an insurance era in Oregon. On December 29, 2023—the last Friday before the new year—the Oregon Supreme Court issued its much-anticipated decision in Moody v. Oregon Community Credit Union,...more

Rivkin Radler LLP

New York Insurance Coverage Law Update - June 2024

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The parent of an infant sued Kim Eichle for Eichle’s alleged negligence in serving alcohol to her houseguest, Jacob Russo, who allegedly assaulted the infant, and for negligence in failing to keep the sidewalk at her...more

Faegre Drinker Biddle & Reath LLP

Court Sides with Long-Term Care Insurer Over Claim Denial and Potential Fraud

A judge from the District of Colorado recently issued an opinion that might leave the door open for long-term care insurers to void policies after the contestability period expires if an insured commits fraud. See Meyer v....more

Presley & Presley

No “Claim”, No Coverage

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Claims Made and Reported policies are their own animal. Proper reporting of claims is vital to ensure coverage for any loss. Knowing what constitutes a “claim” that must be reported and when and how to report the claim can be...more

Presley & Presley

December Bad Faith Update: No Request for Defense, No Coverage Problem

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With very limited exceptions, liability policies provide insureds with two primary benefits: ­a defense paid for by the insurance carrier and indemnity for covered claims. These benefits to the insured are purchased with...more

Carlton Fields

California Court Holds Intentional Acts Exclusion Bars Coverage for Shooting Claim Even Though Shooter Believed Gun Unloaded

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In Helguera v. Mid-Century Insurance Co., California’s Fourth District Court of Appeal held that an intentional acts exclusion in the liability coverage part of a homeowners insurance policy issued by Mid-Century Insurance...more

Wiley Rein LLP

Insurer Must Show that Reasonable Insured Would Have Concluded that Potential Claim Could Arise from Ongoing Investigation in...

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The United States District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, denied an insurer’s motion for summary judgment on the grounds that a genuine dispute of material fact existed as to...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Recent Statutory Changes in Florida Insurance Law: Bad Faith - Part Three

This is the third in a series of four articles analyzing recent changes to Florida law governing bad-faith claims in insurance coverage litigation. The changes were made in Senate Bill 2A and House Bill 837, which became law...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Recent Statutory Changes in Florida Insurance Law: Bad Faith - Part Two

This is the second in a series of four articles analyzing recent changes in Florida law governing bad-faith claims in insurance coverage litigation. The changes were made in Senate Bill 2A and House Bill 837, which became law...more

Kennedys

Just add water—why relating back does not put the insurer on notice of bad faith

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In D&B Marine, LLC v AIG Prop. Cas. Co. [March 21, 2023] the North Carolina Court of Appeals held that the owner of what the court deemed “the Unluckiest Yacht” could not relate back claims for bad faith to its original...more

Butler Weihmuller Katz Craig LLP

Bad Faith Claim Brought Under Florida Law Foreclosed by the Insurance Policy’s Choice of Law Provision

When contained in an insurance policy, a choice of law provision generally provides that the law of a certain state will apply to the policy and the determination of rights and responsibilities under the policy. Sometimes, a...more

Butler Weihmuller Katz Craig LLP

Attorney’s Fees as an Element Damages in an Uninsured Motorist Bad Faith Lawsuit Make the Plaintiff Whole, not His or Her...

A plaintiff cannot recover attorney’s fees in a Florida lawsuit for Uninsured Motorist (“UM”) benefits unless there is a dispute about whether the insurance policy provides coverage.  However, attorney’s fees from the...more

Kennedys

Eleventh Circuit expands excess judgment rule for bad faith claims

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This week’s decision by the Eleventh Circuit in McNamara v. Gov't Employees Ins. Co., __ F.4th __, No. 20-13251, 2022 WL 1013043 (11th Cir. Apr. 5, 2022) expands the circumstances under which insurers in Florida may face...more

Butler Weihmuller Katz Craig LLP

Good Faith: Plaintiffs’ Complaints About Release Held Invalid

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

Cozen O'Connor

Louisiana Federal Court Upholds Applicability of Anti-Concurrent Causation Exclusion for Hurricane Damage

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In a timely reaffirmation of the Fifth Circuit’s 2007 ruling in Leonard v. Nationwide Mut. Ins. Co., a Louisiana federal court recently upheld the application of an insurance policy’s Anti-Concurrent Causation Clause (“ACC”)...more

Cozen O'Connor

No Bad Faith When Insurer Relied on Opinion of Independent Consultant

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The Court of Appeals of Georgia recently held that an insurer’s reliance on the report of an independent consultant creates a presumption that it did not act in bad faith in denying coverage. In Montgomery v. Travelers Home...more

Cozen O'Connor

Reasonableness of Insurer’s Coverage Decision Determined by Evidence Available at Time of Decision

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The Eighth Circuit Court of Appeals recently held that, under Iowa law, an insurer is not liable for breach of contract or bad faith if its coverage decision was objectively reasonable at the time it was made. In Hallmark...more

Butler Weihmuller Katz Craig LLP

Personal Injury Protection Coverage: A Thing Of The Past In Florida?

Personal Injury Protection (PIP) coverage was first enacted in Florida in 1971.  PIP is also known as no-fault insurance, and it allows drivers and passengers to obtain insurance benefits for medical treatment and wage loss,...more

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