Health Care Co.'s Insurer Hit With $13.5M Bad Faith Award

By Jeff Sistrunk (January 8, 2018, 9:09 PM EST) -- Homeland Insurance Co. of New York acted in bad faith by disputing coverage of litigation accusing policyholder CorVel Corp. of improperly discounting medical services payments without providing adequate notice to providers, a Delaware judge ruled Friday, ordering the insurer to pay CorVel $13.5 million in damages and penalties.

Homeland filed suit in Delaware state court in January 2011, seeking a determination that CorVel's errors and omissions policy didn't cover the claims asserted against the health care management company in a class action arbitration in Louisiana. Among other arguments, Homeland asserted that CorVel had failed to timely report the underlying suit to...

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