Bad Faith Claims Trend Threatens Insurer Attys, Panel Says

Law360 (April 26, 2018, 9:15 PM EDT) -- Fair warning, insurance defense specialists and appointed counsel: Bad faith claims are coming for you.

That was the message Thursday at an American Bar Association panel in Washington, D.C., about low-coverage-limit, high-exposure cases for insurance companies and their insureds.

While panelists touched on issues of standing and the nuances of the three-way relationship between insured, insurer and counsel, most of the discussion focused on plaintiffs pushing more theories of bad faith by insurance companies, and a troubling trend of those serious claims enveloping insurer-chosen lawyers.

The panel also noted an apparent uptick in recent years of situations in which coverage-limit busting...

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