Category Archives: Insurance Bad Faith
Insurer’s Contractual Vs. Statutory Duties
The Difference Between an Insurer’s Contractual and Statutory Duties Under Florida Law Insurance companies have two independent duties when it comes to paying a claim filed by a policyholder. The first duty is contractual, i.e., the insurer’s responsibilities under the policy itself. This contractual duty extends to any requirements regarding the evaluation and payment… Read More »
Tampa Judge: Business Liability Insurers Not Responsible For Claim Made Prior To Policy Period
Insurance disputes often involve complex questions of law and contract interpretation. Yet many cases boil down to a single question: Does the insurance policy actually cover the claim at issue? Sometimes this question proves relatively easy to answer. For example, there is this recent decision from a federal judge in Tampa, Ditech Financial LLC… Read More »
Is It “Bad Faith” For An Insurance Company To Include A Proposed Release With A Settlement Offer?
Florida law requires all insurance companies to act in good faith when approving, denying, or settling claims. An insurer that fails in this duty may face a bad faith lawsuit from an aggrieved policyholder or third-party victim. In defending against such claims, however, the person alleging bad faith still has to present evidence in… Read More »
When Are Insurance Companies Obligated To Honor A Coblentz Agreement?
Insurance companies have a duty to act in good faith when handling an insured party’s claims. This often includes defending the insured against lawsuits that are within the scope of a policy. If an insurer wrongfully refuses to provide such a defense, the insured can settle the case themselves in exchange for the plaintiff… Read More »
What to Do When Your Homeowners’ Insurance Claim is Denied in Florida?
If you carry homeowners’ insurance, you probably expect your insurer to pay for any covered damages to your property, including fire, theft, wind, flood, and others. However, you may be surprised to find out that your homeowners’ insurance claim has been denied. What should you do when your insurance company denies your homeowners’ insurance… Read More »
Businesses Gear Up for Wave of Insurance Bad Faith Litigation Over Coronavirus-Related Claims
The issue of the coronavirus potentially causing business losses and a number of U.S. companies thinking that their insurance policies cover this loss of revenue due to the outbreak will likely be a significant source of insurance bad faith litigation as we face more and more losses due to the virus. According to the… Read More »
Jury Awards RV Owner Almost $8.5 Million, Most of Which Is Punitive Damages, After Insurance Company Denies Claim
In February, a jury awarded one plaintiff almost $8.5 million verdict, which included eight million dollars in punitive damages, as a result of an insurance bad faith litigation claim brought against insurance company National General. The case is one that all insurance companies should be aware of in terms of what it means to… Read More »
Appellate Court Sets New Precedent for Bad Faith Insurance Claims
An important insurance bad faith decision out of a New York appellate court clarifies important Court of Appeals precedent regarding the bad faith pleading standard, while also clarifying a number of issues that the courts have never addressed, including consequential losses and attorney’s fees. Even though decided in New York courts, this is… Read More »
Florida Appellate Decisions Push Bad Faith Standard & Raise Concerns
The longstanding standard of what constitutes bad faith in Florida was determined by the Florida Supreme Court almost 40 years ago. The Court determined that an insurer has a duty to use the same degree of care and diligence as someone “of ordinary care and prudence.” Insurers must investigate the facts, give fair consideration… Read More »
Study Finds That Third-Party Bad-Faith Insurance Claims Are Somewhat Out of Control in Florida
According to a new study, Florida’s third-party bad-faith legal environment increases claim costs for every insured vehicle by an average of $106 per claim, or a total of more than $7 billion in additional claim costs over more than a decade. According to some experts, most of these costs can reportedly be attributed to… Read More »
