Ind. Bad Faith Ruling Puts Claims Handling Under Scrutiny

Law360, New York (January 7, 2014, 8:20 PM EST) -- By allowing class action plaintiffs to pursue a bad faith claim against ACE American Insurance Co., an Indiana appeals court recently underlined the risks that lay in store for insurers accused of improper claims handling in jurisdictions where a breach of contract is not necessary to show bad faith.

Citing prior Indiana Supreme Court rulings, the appeals court said insurers can face a punitive damages claim for bad faith even when there's a legitimate dispute over whether insurance coverage is owed. The way an insurer handles...
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