In an unexpected and last minute turn of events, the Oregon legislature failed to pass a final-stage version of House Bill 3242 before its regular session adjourned on June 25, 2023 for the remainder of the year. Generally, if HB 3242 had been promulgated into law, it would have opened the door to statutory “bad
Avoiding Insurance Bad Faith
Blog Authors
Latest from Avoiding Insurance Bad Faith
Eleventh Circuit: Jury Instruction About Notice to Insured of Settlement Demand Was Required (Florida)
In its recent decision, Brink v. Direct General Ins. Co., 38 F.4th 917 (11th Cir. 2022), the Eleventh Circuit ruled 2-1 that the Florida district court erred when it failed to instruct a jury that an insurer not only owed a duty to settle claims for its insured, but also owed a duty to advise…
Under Texas Law, No Tender Means No Obligation To Defend
The United States Court of Appeals for the Fifth Circuit recently affirmed a long-standing Texas rule: the duty to defend is not implicated unless the insured complies with the policy’s notice-of-suit requirements and demands a defense. Moreno v. Sentinel Ins. Co., Ltd., 35 F.4th 965, 975-77 (5th Cir. 2022). This rule applies even when an…
Texas Supreme Court Axes Policyholder’s Attempt to Expand Insurer Tort Liability
In Elephant Insurance Co., LLC v. Kenyon, the Supreme Court of Texas reiterated the framework of an insurer’s common-law duties to insureds under Texas law.[1] In applying that framework to the facts of the case, the Court rejected an attempt to expand an insurer’s obligations under existing common-law tort principles. The Court also refused…
California Court of Appeal: Insurers Not Liable Under the California Insurance Frauds Prevention Act
In its recent decision, People ex rel. Ellinger v. Magill, et al., —Cal.Rptr.3d—, No. E076378, 2022 WL 1077988 (Cal. Ct. App., Mar. 18, 2022), the California Court of Appeal refused to extend liability under California’s Insurance Frauds Prevention Act (IFPA) to an insurer’s claims handling practices.
Insurance Code Section 1871.7 allows a party to…
Montana: Unambiguous Exclusions Enforced Despite Lack of Table of Contents Required Under Statute
A recent Supreme Court decision, High Country Paving, Inc. v. United Fire & Cas. Co., 2022 MT 72, ¶ 1, answered in the negative a question certified by a federal district court regarding tensions inherent in Montana’s Property and Casualty Insurance Policy Simplification Act (“PSA”). The Ninth Circuit had submitted the following state law…
Eleventh Circuit (Florida): No Bad Faith for Investigating Claim
On February 15, 2022, the United States Court of Appeal for the Eleventh Circuit upheld the Southern District of Florida’s summary judgment victory for GEICO, finding that no reasonable jury could conclude that GEICO had operated in bad faith with respect to its handling of a wrongful death claim against its insured. Ellis v. GEICO Gen.…
New Statute May Spell Trouble for New Jersey Insurers
On January 19, 2022, New Jersey Governor Phil Murphy signed S.B. 1559, known as the “New Jersey Insurance Fair Conduct Act,” which allows motorists to sue their insurance companies over “unreasonably” late or denied coverage benefits and unfair settlement practices. The bill, passing through both houses of New Jersey’s legislature without substantial amendment, would allow…
Fifth Circuit Weighs in on Aftermath of Texas Supreme Court’s Decisions Affecting Insurers’ Pre-Appraisal Award Payments and Damages under the Texas Prompt Payment of Claims Act
Just a few short years ago, there was a bright line rule under Texas law concerning appraisal awards. If an insurer timely paid an appraisal award, that payment extinguished all of the insurer’s contractual and extracontractual liability to the insured. See, e.g., Garcia v. State Farm Lloyds, 514 S.W.3d 257, 264-273 (Tex. App.—San Antonio 2016,…
Fifth Circuit Finds Potential Coverage for Data Breach; Interprets “Publication” Broadly
Using general contract interpretation principles, the Fifth Circuit reversed summary judgment in favor of an insurer and found a duty to defend Landry’s in a data breach lawsuit. Landry’s Inc. v. The Insurance Company of the State of Pennsylvania, No. 19-20430 (July 21, 2021). Landry’s contracted with Paymentech to process credit card payments at its…