JUNE 2018 BAD FAITH CASES: IN AN OPINION THAT BRINGS OUT THE VALUE OF KEEPING A THOROUGH AND DETAILED CLAIMS FILE, THE INSURED FAILED TO PRESENT CLEAR AND CONVINCING EVIDENCE THAT (1) THE INSURER LACKED A REASONABLE BASIS FOR ITS ESTIMATES, AND (2) THAT DELAY AMOUNTED TO BAD FAITH (Philadelphia Federal)

After a fire damaged insured’s property, six inspections of the property occurred due to the adjusters’ differing opinions on demolition and construction costs. Time also…

JULY 2018 BAD FAITH CASES: (1) BREACH OF IMPLIED COVENANT OF GOOD FAITH AND BREACH OF CONTRACT CLAIM NOT SEPARATE CAUSES OF ACTION; (2) STATUTORY BAD FAITH CLAIM FAILS WHERE INSURED MERELY ARGUES INSURER’S POLICY INTERPRETATION FAVORS INSURER (Middle District)

The insured had a life insurance policy with a $25,000 coverage amount. The original policy included a two-year suicide exclusion. Two other insurers acquired the…

JUNE 2018 BAD FAITH CASES: (1) UIPA VIOLATIONS IRRELEVANT TO PROVING BAD FAITH AND MUST BE STRICKEN; BUT (2) FACTS DETAILING INSURER’S CONDUCT DENYING CLAIM, INCLUDING FAILURE TO ABIDE BY INDUSTRY STANDARDS, MAKE OUT PLAUSIBLE BAD FAITH CASE (Philadelphia Federal )

In this case, the court permitted the bad faith claim to proceed, however it struck all references to the Unfair Insurance Practices Act (UIPA) as…