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 »

It is highly unusual to find an insurance bad faith case which stems from an insurance company’s subrogation recovery. On July 6th, Wisconsin’s highest court had such a case, reversing the appellate court and holding that Dairyland Insurance Company’s subrogation …

Subrogation recovery did not violate the made-whole-rule and was not in bad faith per Wisconsin Sup. Ct. Read more »

This month, the Eastern District of Pennsylvania issued an opinion that reminds insurance carriers and their counsel that it is often beneficial to remove certain cases to federal court. While federal court offers many advantages in insurance litigation, the recent …

The Advantages of Removal: Twombly and Iqbal Applied to Bad Faith Claims Read more »

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 …

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

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 …

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

Differences between federal court and state court procedure can be important for insurers that find themselves involved in “bad faith” litigation.  If a lawsuit alleging extracontractual claims is filed in federal court, or if it is removable to the federal …

Will Discovery Unlock Your Claim File? Federal or State Court Jurisdiction Could Make The Difference 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 »

Insurance companies that write property risks in Florida are getting in line to request approval from the Office of Insurance Regulation (OIR) for two key policy revisions intended to control losses from a water damage property claim practice called “assignment …

Florida Regulators Approve Policy Language Aimed at Limiting “Assignments of Benefits” Claim Practice Read more »