FEBRUARY 2016 BAD FAITH CASES: INSUREDS ADEQUATELY PLEADED BAD FAITH UNDER TWOMBLY/IQBAL STANDARDS (Philadelphia Federal)
In Kelly v. Progressive Advance Insurance Company, the insurer sought to dismiss plaintiffs’ bad faith claims under the Twombly/Iqbal pleading standards.
The insureds were injured by a drunk driver and sought underinsured motorist coverage from their own carrier. They alleged bad faith for improperly denying coverage, failure to make a reasonable settlement offer, failure to investigate the claims properly and disregarding documentation, including medical records. The court found the pleading sufficient, and denied the motion to dismiss.
