Insurance Bad Faith on Trial: The Fine Line Between Fair Dealing and Bad Faith

This session examines how insurance carriers misquote or ignore policy language to deny or limit claim payments. Participants will learn about the principle of adhesion, how complex policy clauses can lead to legitimate confusion or intentional misinterpretation, and real-world examples including the ‘your work’ exclusion case where a carrier altered punctuation to avoid coverage.

This session explores how insurers make lowball settlement offers and the tension between preserving financial stability and treating claimants fairly. Topics include actual cash value versus replacement cost disputes, the role of appraisal provisions in resolving valuation disagreements, and a case study involving pre-existing conditions where a jury found the carrier’s $6,000 offer on a $30,000 claim unreasonable.

This session analyzes how carriers may attribute damage to excluded perils without adequate investigation, particularly in hurricane cases involving wind versus flood disputes. Attendees will examine the carrier’s duty to properly investigate loss causation and understand how failing to distinguish between covered and excluded perils can constitute bad faith.

This session addresses situations where agents or direct writers fail to secure the coverage that policyholders specifically requested. Participants will explore the complex application process across various insurance lines, the importance of excess and umbrella coverage, and how coverage gaps can leave insureds exposed to significant uninsured losses.