No Tort Remedy for Non-Insurance Claims Bad Faith
The Supreme Court of California was faced with the question of “whether an insurance company’s breach of the covenant sounds in tort when it retroactively overcharges a premium it knows is not owed.” In Jonathan Neil & Associates v. Jones, a dispute between Jones Trucking and Jonathan Neil & Associates arose after an audit of the Joneses’ operations found the trucking company was subcontracting business to other trucking companies. A rule governing the state’s assigned risk plan called for Jones Trucking to pay for the subcontractors’ insurance.
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