Insurance 101 – Chapter 11 – Volume 87 – Limitation on Defense – 3

Limitation on Defense – 3

The genuine dispute defense does not apply when the dispute arises because “the insurer failed to conduct a thorough investigation. In other words, a breach of the covenant of  good faith and fair dealing can be found even where the insurer harbors actual doubts about the amount of benefits which should be paid on a covered claim if a reasonable investigation would have disclosed information making those doubts no longer tenable.

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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