As the law of insurer bad faith evolves, the question of whether policyholders are entitled to a jury trial of their claims, or parts of their claims, comes increasingly into focus.
Reasonableness in Bad Faith Cases: A Question for the Jury?
As the law of insurer bad faith evolves, the question of whether policyholders are entitled to a jury trial of their claims, or parts of their claims, comes increasingly into focus. In cases where the policyholder alleges bad faith in the manner in which a claim is investigated or handled — so-called "procedural" bad faith — factual issues for the jury often abound. But when an insurer timely and clearly declines coverage following an adequate investigation, should the "reasonableness" of that declination be submitted to a jury? From both a practical and a policy perspective, the answer in most cases should be no.
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