Storm Of Problems In Insurer Bad Faith Liability

Law360, New York (October 17, 2012, 2:01 PM EDT) -- Within the past 30 years, courts and legislatures throughout the United States have become more actively involved in consumer protection, prohibition of unfair or deceptive trade practices and in the enforcement of covenants of good faith in contractual relations. The combination of these developments has led to statutes and rules in a minority of states to the effect that insurers can be liable in damages to third‐party claimants if the insurer fails to observe fair settlement practices.

The doctrine of insurer liability to noninsured persons has...
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