One of the most settled—but frequently litigated—principles in insurance law is that bad‑faith liability is derivative of coverage. In general, an insurer cannot be liable for bad faith where it did not owe coverage or benefits under the policy in …

No Coverage, No Bad Faith: Majority of States Enforce the Threshold Requirement Read more »

This author suggested, in an earlier May 2016 Bad Faith blog article, that an insurer can measure on a “strength scale” its insurance coverage defenses while it defends its insured against underlying claims and lawsuits under a reservation of rights. …

WHOSE SETTLEMENT IS IT, ANYWAY? NEGOTIATING CONSISTENT WITH AN INSURER’S STRONG COVERAGE DEFENSES Read more »