Kathryn Ashton | Clyde & Co. In March 2021, an appellate court decision clarified what the law has always been in California; that to find an insurer liable for bad faith, the insured (or its assignee or a judgment creditor) must plead and prove the insurer acted unreasonably or without proper cause. California’s standardized jury… Continue reading An Insurer Is Not Subject to Strict Liability for the Failure to Accept a Reasonable Settlement
Category: Insurance Coverage
Keeping the Cap On the Policy: Unreasonable Conduct Is a Necessary Element of a “Bad Faith Failure to Settle” Claim
Jared K. LeBeau | Sheppard Mullin Pinto v. Farmers Ins. Exch., ___ Cal. App. 5th ___ (2021) Over the past several years, the insurance industry in California has been plagued by waves of “bad faith failure to settle” claims. These claims arise out of a variety of circumstances and can take many forms, but at… Continue reading Keeping the Cap On the Policy: Unreasonable Conduct Is a Necessary Element of a “Bad Faith Failure to Settle” Claim
Triable Issue of Fact Exists as to Insurer’s Obligation to Provide Coverage Under Occurrence Policy
Valerie Moore and Kathleen Moriarty | Haight Brown & Bonesteel In Guastello v. AIG Specialty Ins. Co. (No. G057714. filed 2/19/21 ord. pub. 2/23/21), a California appeals court held that triable issues of material fact exist which precluded summary judgment for an insurer seeking to disclaim coverage on the basis that the “occurrence” pre-dated the policy period… Continue reading Triable Issue of Fact Exists as to Insurer’s Obligation to Provide Coverage Under Occurrence Policy
Allocating Covered and Uncovered Damages in Jury Verdict
David Adelstein | Florida Construction Legal Updates When a liability insurer defends an insured from a third-party claim, they oftentimes do so under a reservation of rights. A reservation of rights letter is issued to the insured that identifies certain coverage exclusions or reservations relative to the insurance policy that may impact the insurer’s duty to indemnify the… Continue reading Allocating Covered and Uncovered Damages in Jury Verdict
New York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material Terms
Marianne Bradley and Gregory Capps | White and Williams In the long-tail insurance context, it is not unusual to have issues arise addressing “lost” or “missing” policies. In an opinion issued on January 22, 2021, a New York court ruled that an insurer did not owe coverage to its insured for underlying asbestos claims because… Continue reading New York Court Finds No Coverage Owed for Asbestos Losses Because Insured Failed to Prove Material Terms