Insurance 101 – Chapter 11 – Volume 91 – Genuine Dispute & Fairly Debatable

Genuine Dispute & Fairly Debatable

In the insurance bad faith context, a dispute is not legitimate unless it is founded on a basis that is reasonable under all the circumstances. Under the genuine dispute rule, bad faith cannot be established where the insurer’s withholding of benefits is reasonable or is based on a legitimate dispute as to the insurer’s liability. Of course, an insurer must investigate thoroughly a claim by an insured before denying the claim in good faith. If an insurer denies a claim it has not investigated reasonably, then the insurer is subject to tort liability.

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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