Fairly Debatable – 3
A debatable reason for denying a claim is “an arguable reason, one that is open to dispute or question.” Id. If the evidence offered by the insured “fails to eliminate any arguable reason for denying payment, any fairly debatable reason on a matter of fact or a matter of law, he cannot recover under the tort of ‘bad faith refusal.’” Whether the insurer had such an arguable basis for denial is judged as of the time the decision to deny is made
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