On June 10, 2026, the Supreme Court of Appeals of West Virginia held that an insurer’s offer to “vigorously defend” the policyholder and to pay a potential excess verdict does not lead to waiver of the coverage defenses the insurer
Avoiding Insurance Bad Faith
Avoiding Insurance Bad Faith, published by Cozen O'Connor, focuses on legal issues surrounding insurance bad faith claims. The blog covers court rulings on insurer conduct, procedural aspects of bad faith litigation, and the fiduciary duties insurers owe to their insureds. It addresses topics such as claims handling practices, settlement negotiations, and the impact of emerging technologies like artificial intelligence on claims processing. The blog also discusses state-specific developments in bad faith law, including tort reform and evidentiary standards in insurance disputes. It serves as a resource for understanding insurer obligations, insured rights, and litigation strategies in bad faith contexts.
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Latest from Avoiding Insurance Bad Faith
Tenth Circuit Holds Early Tender of Policy Limits Bars Bad Faith Liability
In a recent opinion, Jenkins v. Prime Ins. Co., 182 F.4th 1214 (10th Cir. 2026), the U.S. Court of Appeals for the Tenth Circuit held that an insurer facing a $60 million underlying judgment was protected from bad faith liability…
Georgia’s Bad Faith Funhouse: Recent Developments in Time-Limited Settlement Demand Law in Georgia
“Void if not presented within 90 days.”
These seven unassuming words were printed on the face of a settlement check that an insurance company issued in response to a plaintiff’s demand. Unfortunately for the insurer, the bank’s imposition of the…
Bad Settlement Decisions Can Be Costly: Nevada Recognizes Excess Carrier Bad-Faith Claims
By Henry Kim
Introduction
Earlier this year, the Nevada Supreme Court issued a significant decision for insurers, policyholders, and coverage counsel in North River Insurance Company v. James River Insurance Company[1]. In a matter of first impression, the Court held that…
Ohio Supreme Court Restricts Discovery of Insurer Claim Files in Bad-Faith Cases
By Nicole Renna
The Ohio Supreme Court recently issued an important decision addressing the discoverability of attorney-client communications and work-product materials in insurer bad-faith litigation, holding that attorney-client communications contained within an insurer’s claim file are not automatically discoverable simply because an insured…
Form Complaint, Predictable Result: North Carolina Federal Court Dismisses Bad Faith Claims
A recent decision from the United States District Court for the Western District of North Carolina serves as a useful reminder for insurers in coverage litigation that a disputed coverage determination, standing alone, does not give rise to a viable…
California Court Revives Bad Faith Claim Based on Alleged Claims-Handling Delay
By Nicole Renna
In Bornoff v. State Farm Gen. Ins. Co., No. B339796, 2026 WL 1194424 (Cal. Ct. App. May 1, 2026), the California Court of Appeal, Second District, reversed summary adjudication of a policyholder’s bad faith claim, holding that the insurer failed…
Eighth Circuit Issues Split Decision on Bad Faith Claim Involving Payment of Policy Limit Five Years After Jury Verdict
In Scobee v. USAA Casualty Insurance Co., 168 F.4th 507 (8th Cir. 2026), the United States Court of Appeals for the Eighth Circuit issued a split decision on whether a rational factfinder would find an insurer’s conduct outrageous and in…
No Coverage, No Bad Faith: Majority of States Enforce the Threshold Requirement
One of the most settled—but frequently litigated—principles in insurance law is that bad‑faith liability is derivative of coverage. In general, an insurer cannot be liable for bad faith where it did not owe coverage or benefits under the policy in…
One Claim, Two Lenses: Legal and Practical Implications of Splitting The Claim File
In the insurance industry, insurers often maintain split files for complex liability claims as an administrative control that enables their defense of an insured(s) while simultaneously investigating coverage issues. While some insurers maintain split files for all claims, others may…