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Bad Faith Update

Real cases. Real carriers. Real consequences.

The Bad Faith Update is ongoing analysis from the trial lawyers at Presley & Presley — written for plaintiff attorneys navigating insurance bad faith from reservation of rights traps to excess exposure strategy.

Privilege Preserved!

With ever more frequency, insurers have started to raise affirmative defenses in extra-contractual cases focusing on the insured/claimant’s mindset during the settlement process. Generally, these...

Interpleader Insufficient to Erase Extra-Contractual Exposure

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...

Written Settlement Demand Not Necessary

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...

Unique Supplemental Payments Provision Leads to Supplemental Payday

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...

Stays Go Both Ways Federal Court Halts Coverage Action Pending Tort Resolution

Carrier requests for stays have been all the rage recently with a recent Missouri decision granting an insurer the ability to intervene into tort lawsuits...

Retained Counsel Beware Insurer Tactics to Recover Excess Payments

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...

Obligations Extend Beyond Accepting Settlement Proposal

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...

No Definitive Settlement Terms, No Bad Faith

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,...

A Right to Intervene but Nothing More

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...

Fifth Circuit Calls Foul on Misuse of Federal DJ

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...

Dictionary Dooms Denying Carrier

Liability insurance policies are designed to provide protection for insureds as well as compensation for injured parties. Most jurisdictions require courts to interpret policies to...

No Request for Defense, No Coverage Problem

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...

Additional Insureds, Additional Coverage

While the named insured under a liability policy is obviously entitled to certain coverages under their liability policy, additional entities will often qualify for coverage...

Settling With House (The Insured’s) Money

Insurer Controls Settlement Within Deductible With limited exceptions, liability insurance policies grant exclusive discretion to the insurer to settle cases as they see fit. This...

No “Claim”, No Coverage

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...

No Direct Interest, No Intervention

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...

Buffet Of Bad Faith Issues

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...

Auto Exclusion Not So Absolute

It is no surprise that CGL policies exclude coverage for bodily injuries caused by the operation of cars or trucks. Automobile risks and business premises...

Defending Without Reserving A Daring Decision

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...

Covenant Not To Execute Does NOT Preclude Damages

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...

Carrier’s Failures Create Coverage

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...