Traditionally, courts have found bad faith in two contexts ' when an insurer wrongfully denies coverage in a first-party claim and when an insurer's improper refusal to settle a third-party claim results in an excess verdict against the insured.
PA Court Refuses to Expand Scope of Third-Party Bad Faith Liability
Traditionally, courts have found bad faith in two contexts — when an insurer wrongfully denies coverage in a first-party claim and when an insurer's improper refusal to settle a third-party claim results in an excess verdict against the insured. Courts have recognized bad faith causes of action under these circumstances in light of the type of policy involved and the nature of the insured's interests that are at stake.
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William P. Shelley, Jacob C. Cohn, And Samantha M. EvansThis premium content is locked for LawJournalNewsletters subscribers only
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