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Expert Analysis

When Are Insurance Bad Faith Damage Awards Excessive?

By Richard Doren and Michael Holecek (February 28, 2019, 1:18 PM EST) -- To evaluate the potential risks for insurance company clients sued for bad faith claim handling, defense counsel must understand the categories of potential damages that could be awarded and have a basis from which to assess their potential magnitude. Bad faith damages are case-specific, and they depend on the nature of the insurer's conduct and the insured's injury, among other factors. A particular damages award might be appropriate in one case, but excessive and even unconstitutional in another....

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