Insurance 101 – Chapter 11 – Volume 90 – Limitation on Defense – 6

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.

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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