Claims Probe Crucial In Insurers' Bad Faith Defense

Law360, New York (June 16, 2009, 12:00 AM EDT) -- One allegation arising frequently in disputes between policyholders and insurers is a claim that an insurer did not act in good faith. While such claims can be difficult to prove, attorneys say it is always in an insurer’s best interest to vigorously defend itself because bad faith judgments can often result in the award of punitive damages.

Policyholders may allege bad faith claims in a number of circumstances, including in first-party insurance situations where insurers may be accused of not handling requests to pay damages appropriately....
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