The United States District Court for the Southern District of California recently considered whether the carrier’s late payment of the insureds’ economic damages eliminated a claim for bad faith and held that it does not. Polcyn v. Liberty Mut’l Ins. …

A Claim for Bad Faith is Not Eliminated By A Late Payment of the Insured’s Economic Damages Read more »

Just because there is no insurance policy may not mean there is no cause of action for bad faith according to a recent Hawaii Supreme Court decision analyzing the Joint Underwriting Program (“JUP”) statute.  Willis v. Swain case. — P.3d …

Think You Cannot Be Sued For Bad Faith Because You Haven’t Issued A Policy to A Plan Participant? Think Again . . . Read more »

A federal trial court in Iowa confirmed that first-party bad faith claims may be cognizable against both insurers and self-insured employers.  In Spencer v. Annett Holdings, Inc., 905 F.Supp.2d 953 (S.D. Iowa, Nov. 27, 2012), an over-the-road truck driver who …

Bad Faith Claims Permitted Against Self-Insured Employers In Iowa – “Fairly Debatable” Defense Precludes Finding This Time Read more »

The New York Court of Appeals, the state’s highest court, recently held that an insurer that breached its duty to defend could not later rely on otherwise applicable exclusions to deny coverage for indemnification. Under this apparently new rule, an …

New York Court of Appeals to Insurers: If You Breach Your Duty to Defend, You May Lose Your Defenses to Indemnification Read more »

On March 13, 2013, the Oregon legislature introduced Senate Bill 814 to create sweeping reforms on environmental claims handling regulations and available remedies for insureds facing liability for cleanup of contaminated property located in the state. The proposed legislation would …

Senate Bill 814 Proposes Sweeping and Retroactive Changes to Environmental Claims Handling in Oregon Read more »

On April 15, 2013, a New York trial court granted the insured’s request for the production of certain claims file material and previously sealed discovery in Estée Lauder Inc. v. OneBeacon Insurance Group LLC et al., index number 602379/2005, leaving …

Estée Lauder v. OneBeacon Insurance Group – Expanding the Scope of Discovery in Bad Faith Cases Read more »

Last week, the Montana Supreme Court held that the insurer acted reasonably when it stopped payments based upon its reliance on a prior order from the Workers’ Compensation Court (“WCC”).  Steward v. Liberty Northwest Ins. Corp., 2013 WK 1739577, *7 …

Good Faith Denial of Benefits When Insurer Relies on Rulings of Workers’ Compensation Court Read more »