An insurer that defends its insured against a third party’s lawsuit, while reserving rights to deny coverage to its insured for any judgment, may face a decision point when underlying settlement discussions become ripe to resolve the case. In some …
Should You Withdraw The Reservation of Rights To Avoid Entry of a Consent Judgment? 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 …
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 »
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 …
When discussing bad faith in the third party context, most of the discussion properly centers on the duty to settle a claim. However, other actions taken by a policyholder and carrier can have an impact. The recent case of State …
Reservation of Rights Letters Help Avoid Prejudice in the Third Party Context Read more »
Petitioner Adrian Fridman (“Fridman”) was injured in an automobile accident involving an underinsured motorist. Fridman filed a claim with his uninsured/underinsured (UM) insurance carrier (Insurer) for the $50,000 limits of his UM policy. After the Insurer refused to pay the …
The New Jersey Supreme Court recently revisited its earlier decision in Zuckerman v. National Union Fire Insurance Fire Insurance Co., 100 N.J. 304, 495 A.2d 395 (1985) and upheld the strict enforcement of notice and reporting requirements contained in claims …
This country’s courts are split on whether the decision to award attorney’s fees in bad faith litigation should be made by the judge or the jury. Earlier this fall, Virginia aligned itself firmly with the former in Revi, LLC v. …