Tag Archives: Good Faith Duty

Is an Adjuster Independently Liable for Bad Faith Conduct?

I often get calls from potential clients that have filed a claim with their insurance and have been enraged by an insurance agent or adjuster assigned on the claim. Many potential clients say something like “I just wanted to get the claim settled but the adjuster was acting in bad faith and just wouldn’t listen.” … Continue Reading

Rutgers Law Professor Debunks Notion of Increased Premiums With New Jersey Fair Conduct Act

In a recent op-ed article published in the Star Ledger, Rutgers Law Professor Jay Feinman debunked the myth that insurance companies have been using for decades to prevent good faith claims handling bills from passing through the legislature. As Feinman noted, insurance companies argue that the Insurance Fair Conduct Act (IFCA) is unnecessary and would … Continue Reading

Covenant of Good Faith and Fair Dealing Not Duplicative in New York

On July 5, 2017, the Second Department gave a very meaningful win for insureds. In McBride v. New York Property Insurance Underwriting Association,1 Nor’easter Nemo struck the insured’s home causing a failure of the electrical system. The failure of the electrical system caused water pipes in the home to burst, causing water damage. New York … Continue Reading

Litigation Does Not End the Continuing Duty of Good Faith

In a recent case in Tennessee, homeowners suffered a fire loss and filed a claim with their insurance company, Anpac.1 The insurance company investigated the loss and found that the homeowners intentionally set the fire and denied coverage. It then filed a declaratory judgment action. The homeowners filed counterclaims for breach of contract, unfair claims … Continue Reading

Proving and Winning a First-Party Bad Faith Case in Colorado

I will be focusing my next month of blogging on how to prove and win a first-party bad faith case in Colorado. In proving a bad faith case, the first source I look to is the Colorado Revised Statutes, specifically, C.R.S. §§10-3-1113 (Trier of Fact in Civil Actions) and 10-3-1104 (Unfair Methods of Competition–Unfair or … Continue Reading

Insurer’s Duty of Good Faith Cannot Be Delegated To Third Parties

Several weeks ago, I analyzed the Defense Bar’s latest attempt to increase the costs of litigation for policyholders. In my December 13, 2012, post, Winning a Discovery Battle in Bad Faith and C.R.S. 10-3-1115 Cases Against Insurers, I noted the Colorado Defense Bar’s latest litigation tactic—attempting to designate nonparties at fault and apportioning damages resulting … Continue Reading

Does Your Property Insurer Owe You A Duty Of Good Faith In Processing Your Super-Storm Sandy Claim?

Many policyholders were unable to get through to their insurers in the wake of Super-Storm Sandy, while others’ claims have been denied by insurers that never even sent a representative to the damaged property. Is it unreasonable for insurers to handle claims in that fashion, and does your property insurer owe you a duty of … Continue Reading

It Could Be Bad Faith Too, if…..

Generally speaking, when talking about bad faith claims in California, it involves unreasonable delay or withholding benefits to the insured. In most instances when an insurance carrier fully and promptly pays the benefits due to an insured, a bad faith claim is not viable. Even if the insurance adjuster’s conduct is hostile or over the … Continue Reading

Insurer’s Unfounded Litigation Tactics May Justify Punitive Damages in Addition to Damages Under Colorado’s Insurance Prompt Payment Statutes C.R.S. 10-3-1115 and -1116

An insurer’s duty of good faith and fair dealing to its insured continues even after litigation is filed against the insurer. Colorado recognizes that an insurer’s litigation tactics may be considered by the jury in determining unreasonableness and punitive damages. See Tait ex rel. Tait v. Hartford Underwriters Ins. Co., 49 P.3d 337 (2001) (trial … Continue Reading

Carrier’s Motion for Summary Judgment Does Not Hold Water

Earlier this month, I wrote about a few cases where insurance company motions for summary judgment failed. This week, I am writing about another. Although I prefer to write about reported appellate opinions, the state trial court opinion in Carden v. Allstate Insurance Company, issued by New York’s Supreme Court in Westchester County in December … Continue Reading

Does an Insurance Company Owe Its Own Insured a Lesser Duty of Good Faith in a UIM Claim?

Bad faith litigation is premised on an insurance company’s obligations to its insureds and/or third party to claimants. The duties that an insurance company has to insureds and claimants can arise from the common law duty of good faith and fair dealing, statutes, administrative policies or regulations and legal precedent. The nature of the relationship … Continue Reading

Where the Duty of Good Faith and Fair Dealing Arises in Texas

As many of you know, an insurer has an obligation to deal with its insureds in a fair manner and in good faith. Many insurance policies detail these obligations, leading many to believe that an insurer’s good faith duties arise through the underlying insurance policy. However, as the Texas Supreme Court noted in the case … Continue Reading

Is There a Legal Difference Between “Bad Faith” and a Lack of Good Faith in Insurance Contracts?

Last week, Shaun Marker brought up the case of Chalfonte Condo. Apartment Assoc., Inc. v. QBE Insurance Corp., 561 F.3d 1267 (11th Cir. 2009), in his post titled Enforceability of Large Hurricane Deductibles in Florida. As indicated by the title, Shaun’s post focused on the issue of enforceability of hurricane deductibles, which was only one … Continue Reading