Richard W. Boone, Jr. | Wilson Elser Insurance bad faith litigation remains one of the most significant areas of exposure for carriers in the United States. Rooted in the implied covenant of good faith and fair dealing present in every insurance contract, bad faith claims can expose insurers to extra-contractual damages far exceeding policy limits,… Continue reading Defending Against Insurance Bad Faith Claims: Strategies for Summary Judgment in Bad Faith Actions
Category: Insurance Coverage
No Coverage, No Bad Faith: Majority of States Enforce the Threshold Requirement
Michael Weiss | Cozen O’Connor One of the most settled—but frequently litigated—principles in insurance law is that bad‑faith liability is derivative of coverage. In general, an insurer cannot be liable for bad faith where it did not owe coverage or benefits under the policy in the first place. Two recent federal decisions, applying Illinois and… Continue reading No Coverage, No Bad Faith: Majority of States Enforce the Threshold Requirement
AI in Claims Processing: What It Means for Bad Faith Litigation
Christopher Jones | Sands Anderson Many insurance companies are moving quickly to incorporate advanced forms of AI into their processes. Last year, 90% reported they were evaluating whether and how to utilize generative AI, and more than half said they had already begun implementing it. Claims handling is a primary focus of these efforts. There… Continue reading AI in Claims Processing: What It Means for Bad Faith Litigation
Quick Note: Liability Insurer’s Duty to Defend and Duty to Indemnify
David Adelstein | Florida Construction Legal Updates A liability insurer has two duties: a duty to defend and a duty to indemnify. A recent insurance coverage dispute summarizes these two duties, which are critical for parties to understand and appreciate in the context of insurance coverage claims: An insurance company’s duty to defend is distinct… Continue reading Quick Note: Liability Insurer’s Duty to Defend and Duty to Indemnify
When Algorithms Deny: AI and the New Frontier of Bad Faith
Tiffany Bustamante and Abigail Horvat | Cozen O’Connor As industries across the board adopt artificial intelligence (AI), insurers have likewise recognized its potential to enhance efficiency in claims administration. Yet with this opportunity comes tension: consumers expect both swift resolution of claims and individualized attention. AI can help insurers meet those expectations, but if implemented… Continue reading When Algorithms Deny: AI and the New Frontier of Bad Faith