A recent malpractice case highlighted this issue. In Johnson v. Proselect Insurance, the doctor/insured contended that the insurer acted in bad faith by settling a claim after trial without the doctor’s consent. The doctor contended that the case should have …
Is It Bad Faith to Exercise a Contractual Right? Read more »
On May 26, 2017, Texas Governor Greg Abbot signed into law Texas House Bill 1774/Senate Bill 10. The new law makes changes to the Texas Insurance Code that will impact the way in which weather claims are brought and how …
Texas Amends Insurance Code In Response To Weather Claims Read 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 met the …
Ninth Circuit Upholds Bad Faith Award Despite Issues With Policy Limits Demand Read more »
Recently, the Eleventh Circuit, applying Georgia law, reaffirmed that an insurer cannot be liable for negligently failing to settle a case unless the settlement demand provides protection to the insured against all potential claims, even those which have not been …
Mississippi essentially has three levels of claim when insurance is at issue: (1) mere breach of contract, allowing recovery of contract damages; (2) breach of contract + no arguable basis for breach, which entitles recovery of consequential damages; and (3) …
Fifth Circuit Provides Road Map for Review and Trial of Bad Faith Claims in Mississippi Read more »
When does receipt of a pre-suit claim notice letter trigger an insurance carrier’s obligation to provide a defense and/or indemnity? In Sanders v. Phoenix Insurance Co., the First Circuit provided some guidance to this question, holding that a pre-suit notice …
First Circuit Provides Guidance as to When a Notice of Claim Triggers Policy Obligations Read more »
According to both the appellant and the appellee, the Texas Supreme Court already decided this issue. Each, of course, finds a different answer. Cause No., 14-0721, USAA Texas Lloyds Co. v. Gail Menchaca, in the Texas Supreme Court, arises from …
Virtually all property insurance policies contain an appraisal clause, which outlines the appraisal procedure in broad terms. Those broad terms sometimes do not provide much guidance about the process, or about the effect which an appraisal award may have. A …
Don’t Mess with the Texas Prompt Payment of Claims Act: One Court’s Appraisal Result Read more »
Carriers rely on application representations regarding the existence of potential claims. Sometimes, the carrier learns after the fact that an applicant may not have reported all known potential claims. What can/should the carrier do? A recent example is found in …
When is Rescission Based Upon Material Misrepresentations The Proper Course of Action? Read more »
In CE and CLE courses, we hear all the time that the most often cited reason for a grievance or complaint is lack of communication. This truism provides a useful rule of thumb to avoid bad faith claims. Remember, for …
Avoid Inconsistent Communications By “Revolving Door” Adjusters Read more »