Limitation on Defense – 6
Starting around 1991 and thereafter, as a matter of law, judges often eliminated a bad faith claim if the insurer proffered a sufficient rationale (i.e., a genuine dispute, whether ultimately correct or not) regarding that insurer’s claim decision with respect to a legal issue relating to the availability of coverage. This doctrine, invariably presented by means of a motion for summary judgment or summary adjudication, was later extended to a factual issue.
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