More on Denial
There are limitations to the exception of advice of counsel. For example, if an attorney’s opinion is based on incomplete information provided by the insurer, reliance on that advice will probably not constitute evidence of good faith. Similarly, if the attorney’s opinion is based on inadmissible evidence or is patently unreasonable, an insurer’s reliance on that opinion will not insulate it from bad faith liability. The ultimate responsibility for the decision always rests on the insurer. The insurer cannot rely on poor legal advice just to avoid paying a claim.
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