Canadian Insurers Burnt By Fla. Bad Faith Laws

Law360, New York (March 7, 2014, 5:31 PM EST) -- Could a Canadian insurer that only insures Canadian residents still be sued for bad faith in Florida for failing to perform certain duties that must be performed in Florida? A recent Florida intermediate appeals court decision, Betzoldt v. Auto Club Group Insurance Company, suggests that the answer could be yes.

In Betzoldt, the court held that a Michigan insurer who only insured Michigan residents could still be sued for bad faith in Florida for failing to procure an affidavit from the insured regarding the availability of other...
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