Leaders in Litigating Insurance Bad Faith

Insurers routinely turn to Federal declaratory judgment actions in an effort to secure what they perceive as a friendly forum. Doing so can be appropriate in certain circumstances when an actual coverage dispute is present and the request for a declaratory judgment is pursued on...

When faced with claims that may not be covered, an insurer can take a number of paths. This includes denying coverage, defending under a reservation or defending under a reservation while seeking a declaratory judgment on the issue of coverage.   Some states may also pe...

Deny, Delay, and Defend is a common theme around the insurance industry and is often cited to explain an insurer's reluctance to pay claims. Books have been written on the subject and consultants have been utilized by insurers to put this business plan into place. Des...

Most, but not all, extra-contractual cases involve an insurer failing to accept an offer that would have protected an insured from an excess judgment. Frequently, the insurer will raise some challenge to the offer made by the claimant. These challenges take many forms but often i...

Standards for extra-contractual recovery vary from state to state to some extent. While the standard for recovery may differ, evidentiary, discovery and interpretation issues overlap and arise in many bad faith cases regardless of whose law applies. District Courts in Florida, So...

Most jurisdictions, at least in theory, permit insureds to recover extra-contractual payments/judgments from their insurers under bad faith or negligence theories. Jurisdictions are less uniform on whether or under what theories an insurer can pursue other entities to recoup extr...

​With increasing frequency, insurers are challenging the sufficiency and clarity of settlement demands they failed to previously accept. The insurer's challenges can take many forms but most focus on a demand not being written formal demand, not complying with an inap...

​Insurance laws may vary slightly between jurisdictions but major principles are nearly uniform. These include requirements that an insurer should draft clear and unambiguous exclusions and should identify and fully inform the insured of the basis for a coverage issue promptly. &...

In states that haven't passed safe harbor legislation, multiple claimants and insufficient limit claims pose certain challenges to insurers in the claims handling stage. Numerous claimants competing for severely limited policy limits creates numerous conflicts and can...

Over the past five plus years, the Missouri legislature has continued to grant insurer's new rights and protections. This includes requirements for time-limited demands, interpleader protections and the ability to intervene into certain actions brought against insureds even...

Claims Made and Reported policies are their own animal. Proper reporting of claims is vital to ensure coverage for any loss. Knowing what constitutes a "claim" that must be reported and when and how to report the claim can be challenging. Apparently these challenges exist even fo...

The vast majority of extra-contractual/bad faith cases involve a carrier's failure to secure a release of an insured by accepting a reasonable settlement opportunity within the policy limits. The absence of a reasonable settlement opportunity may complicate proof requiremen...

Following a coverage denial, many jurisdictions permit insureds and claimants to enter into covenants not to execute and to enforce a resulting judgment against the insurer if coverage is shown to exist. Insurers often argue that the insured has suffered no damages as the insured...

Supplemental Payments provisions are present in almost every liability policy. These provisions generally detail the insurer's responsibility for interest and costs awarded in suits that it has undertaken to defend. Litigation surrounding these provisions usually involves t...

With very limited exceptions, liability policies provide insureds with two primary benefits: a defense paid for by the insurance carrier and indemnity for covered claims. These benefits to the insured are purchased with premium dollars and remain available if the insured complies...