{"id":888020,"date":"2016-04-06T09:43:23","date_gmt":"2016-04-06T15:43:23","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=888020"},"modified":"2016-04-06T09:26:41","modified_gmt":"2016-04-06T15:26:41","slug":"six-red-flag-indicators-of-reverse-bad-faith","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/","title":{"rendered":"Six Red Flag Indicators of Reverse Bad Faith"},"content":{"rendered":"<p>CJ Haddick | \u00a0Bad Faith Advisor | March 28, 2016<\/p>\n<p>While the debate still goes on across jurisdictions \u00a0as to whether and how the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/can-insurers-sue-for-reverse-bad-faith\/\" target=\"_blank\">reverse bad faith<\/a> of an insured serves as a defense to an insurer in a bad faith case, that reverse bad faith\u00a0has a place of some sort in bad faith litigation is much less open to doubt.\u00a0 Most jurisdictions recognize a place for consideration of the conduct of the insured in bad faith litigation, largely because it is grossly inequitable to judge\u00a0a two-party interaction by the conduct of only one of those parties.\u00a0 Fundamental fairness would seem to require that if the light of scrutiny is to be placed on the handling of an insurance claim, it be placed on two parties, not one.<\/p>\n<p><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/discovery-in-coverage-and-bad-faith-litigation-are-courts-permitting-more-invasive-discovery\/\" target=\"_blank\">Reverse bad faith<\/a> comes in all shapes, sizes and shades.\u00a0 Sometimes it is overt;\u00a0 other times it is more passive.\u00a0 Here are\u00a0six of the biggest red flags indicating the presence of the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/can-insurers-sue-for-reverse-bad-faith\/\" target=\"_blank\">reverse bad faith<\/a> of the insured in an insurance claim:<\/p>\n<ol>\n<li>\u00a0<strong>The Early-Onset Time Limit Settlement Demand<\/strong> \u2013 This is one of the most obvious signs that the insured may be looking to construct a bad faith claim where one may well not otherwise exist.\u00a0\u00a0This tactic is designed to pressure the insurer to pay a claim before it has had the full and fair opportunity to investigate it, or risk being painted as failing to settle within the limits after it is too late.\u00a0 \u00a0It is also the subject of an earlier\u00a0\u00a0<a href=\"http:\/\/badfaithadvisor.com\/2016\/02\/24\/defeating-the-third-party-time-limit-settlement-demand\/\">post<\/a>\u00a0 on how to defend against them.<\/li>\n<li><strong>Refusal to Reduce A Policy Limits Demand<\/strong> \u2013 An intractable policy limits demand by an insured can be the functional equivalent of a \u201clow-ball\u201d settlement offer from the insurer.\u00a0\u00a0 In Pennsylvania, for example, courts have held that a limits demand by an insured can be tantamount to expressing no interest in compromise, which in turn may relieve the insurer of settlement responsibility.\u00a0 <em>Zapille v. Amex Assurance<\/em>, \u00a02007 WL 1651271 (Pa. Super. 2007)\u00a0 As a result, an insured\u2019s failure to contribute to a settlement-conducive environment is relevant to\u00a0bad faith analysis.<\/li>\n<li><strong>Delay<\/strong> \u2013 This one is the easiest to spot among The Big Six, \u00a0and relatively easy to prove.\u00a0\u00a0 Most courts consider the insured\u2019s responsibility for delaying the life span of an insurance claim in bad faith litigation.\u00a0Some courts have gone so far as to say that an insurer has a reasonable expectation that information requested will be provided promptly and accurately.\u00a0 Delay which may be considered reverse bad faith is not merely calendar delay occasioned by the insured\u2019s failure to respond, it can also be delay cause by the insured\u2019s giving false, misleading, or partial answers to\u00a0questions or requests for information.\u00a0<em>See, e.g.,\u00a0<\/em><em>Sadel v. Berkshire Life Insurance Company of America et al.<\/em>, No. 09-612, 2011 WL 292239 (E.D. Pa. Jan. 31, 2011).<\/li>\n<li><strong>Failure To Cooperate\u00a0In Investigation\u00a0<\/strong>\u2013 this is a close cousin of delay.\u00a0 Non-cooperation is often most seen in an insured\u2019s failure to produce medical authorizations, requested medical, wage, and property records,\u00a0or the failure to \u00a0submit to an examination under oath, or an independent medical examination.<\/li>\n<li><strong>Inconsistent, Exaggerated, and Untruthful Information<\/strong> \u2013 If an insured presents answers for information at various times which conflict with each other, or are plainly exaggerated or not truthful, this is fairly reliable evidence of reverse bad faith.\u00a0 At a minimum, it may justify the insurer\u2019s denial of a claim, extension of investigation, or lower settlement offer.<\/li>\n<li><strong>Is The Insured Represented?<\/strong> \u2013 While this\u00a0red flag is not intended to paint\u00a0all\u00a0practitioners with \u00a0the same broad brush, it would be foolish not to identify this factor as a <em><strong>potential<\/strong> <\/em>red flag in the ferreting out of reverse bad faith.\u00a0\u00a0I have lost count of the number of depositions of insureds I have taken in which I receive only a blank stare in response to the questions, \u201cDo you know what bad faith is?\u201d or \u201cCan you tell me how the insurer committed bad faith in the handling of your insurance claim?\u201d Insureds in and of themselves are not prone to the advocacy\u00a0which tends to present itself when a trained\u00a0legal professional has a contingent interest in the outcome of an insurance claim.<\/li>\n<\/ol>\n<p>If any of these six factors are present&#8230;<\/p>\n<p><a href=\"http:\/\/badfaithadvisor.com\/2016\/03\/28\/red-flag-indicators-of-reverse-bad-faith\/\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>CJ Haddick | \u00a0Bad Faith Advisor | March 28, 2016 While the debate still goes on across jurisdictions \u00a0as to whether and how the reverse bad faith of an insured serves as a defense to an insurer in a bad faith case, that reverse bad faith\u00a0has a place of some sort in bad faith litigation&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\">Continue reading <span class=\"screen-reader-text\">Six Red Flag Indicators of Reverse Bad Faith<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[140],"tags":[140,9159],"class_list":["post-888020","post","type-post","status-publish","format-standard","hentry","category-bad-faith","tag-bad-faith","tag-reverse-bad-faith","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise &amp; Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-04-06T15:43:23+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Six Red Flag Indicators of Reverse Bad Faith\",\"datePublished\":\"2016-04-06T15:43:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\"},\"wordCount\":719,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Bad Faith\",\"Reverse Bad Faith\"],\"articleSection\":[\"Bad Faith\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\",\"name\":\"Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2016-04-06T15:43:23+00:00\",\"description\":\"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise &amp; Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.","description":"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/","og_locale":"en_US","og_type":"article","og_title":"Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.","og_description":"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/","og_site_name":"Advise &amp; Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2016-04-06T15:43:23+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Six Red Flag Indicators of Reverse Bad Faith","datePublished":"2016-04-06T15:43:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/"},"wordCount":719,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Bad Faith","Reverse Bad Faith"],"articleSection":["Bad Faith"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/","name":"Six Red Flag Indicators of Reverse Bad Faith - Advise &amp; Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2016-04-06T15:43:23+00:00","description":"Reverse bad faith comes in all shapes, sizes and shades. Sometimes it is overt; other times it is more passive","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/six-red-flag-indicators-of-reverse-bad-faith\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise &amp; Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3J0U","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/888020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=888020"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/888020\/revisions"}],"predecessor-version":[{"id":888021,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/888020\/revisions\/888021"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=888020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=888020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=888020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}