Paul White (Partner-Los Angeles) and Jennifer Martin (Partner-Dallas) co-authored the two-part series "A Deep Dive on Bad Faith – Avoiding Charges of Unfair Claim Settlement Practices on Third-Party Liability Claims," part one published in the November 2023 edition of CLM Magazine. The article addresses how suits against insurance companies frequently claim bad faith due to the company's failure to pay or imposing limitations on coverage, with policyholders often seeking contractual and tort damages. Paul and Jennifer examine the impact of the Unfair Claims Settlement Practices Act (USPCA) on individual states enacting unfair settlement practices legislation. They detail four common themes in USPCA compliance laws that guide insurers facing third-party liability claims. "Significantly, compliance with such guidelines is often the first line of defense against claims that an insurer acted unreasonably and, in fact, often supports that the insurer's claim settlement practices were reasonable and that the insurer acted in good faith."
Resources
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.