OCTOBER 2015 BAD FAITH CASES: IF TERLETSKY STANDARDS COULD BE MET, BAD FAITH CLAIMS CAN BE PURSUED FOR: (1) WITHHOLDING PAYMENTS, EVEN WHEN PARTIAL PAYMENTS ARE MADE; (2) FAILURE TO INVESTIGATE; AND (3) ABSENCE OF REASONABLE EXPLANATION. A COURT MAY CONSIDER UIPA VIOLATIONS, AND INSURED NEED NOT PROVE ILL-WILL (Philadelphia Federal)

In Scott v. Foremost Insurance Company, Judge Baylson was called upon again to address statutory bad faith claims in the claims handling process. The insureds…