Insurance 101 – Chapter 11 – Volume 38 – Declaratory Relief

Declaratory Relief

Although lawyers and insurers believe that the filing of a declaratory relief action to determine coverage is a means of avoiding charges of bad faith, it can be a trap. In Garner v. American Mut. Liability Ins. Co. (1973) 31 Cal.App.3d 843, the California Court of  Appeal found that an insurer, who filed a complaint for declaratory relief without good  cause, was subject to both damages for bad faith and for malicious prosecution. The  insurer had, instead, delegated the duty to investigate and evaluate to a medical review committee.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

 

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