No Faith In Proposed Bad Faith Legislation

Law360, New York (March 26, 2013, 11:48 AM EDT) -- In the wake of Superstorm Sandy, the New York and New Jersey legislatures are considering adopting bills that will amend both states’ unfair claims practices statutes to allow private causes of action under those statutes based on a single violation.[1]

Since the 1940s, these statutes have been in place to enable state insurance regulators to police insurer business practices,[2] not to provide remedies for private policyholders, who already have a plethora of other bad faith remedies at their disposal.[3]

The proposed legislation is unnecessary because it...
To view the full article, register now.