Insurers Need Policyholder OK For Bad Faith Suits: Court

Law360, New York (March 20, 2013, 4:21 PM EDT) -- A Washington state appeals court made clear Monday that insurers need the go-ahead from policyholders before they can stand in their shoes and sue other insurers under a state bad faith law, wiping out the triple damages and attorneys' fees won by a carrier that covered a workplace injury suit.

Ohio Casualty Insurance Co. successfully argued during the appeal that Trinity Universal Insurance Co. of Kansas had no automatic legal right to bring claims under the Washington Insurance Fair Conduct Act in the name of policyholder...
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