Insurance Cov./Bad Faith

Insurance Coverage / Bad Faith

Plaintiff was sued for fraudulently inducing elderly citizens to apply for life insurance. Plaintiff tendered the defense of the case to his liability insurers. The insurers refused to defend, based on misrepresentations made by Plaintiff in the application. In the bad faith case brought by Plaintiff against the insurer, the insurer claimed that Plaintiff concealed information regarding prior similar claims that had been made against him.

Investors sued a securities firm for recommending investments in real estate ventures that went bankrupt. Securities firm demanded a defense and indemnity from its professional liability insurer. Insurer refused to provide a defense and indemnity due to the securities firm’s nondisclosure of facts that might lead to a claim in the application for insurance. While the securities firm disclosed one existing claim, the undisclosed potential claims arose out of the same events as the disclosed claims.

Breach of contract and bad faith against insurer for refusal to pay for losses from fraudulent theft of jewelry that was being held on assignment

Breach of contract and bad faith against insurer for refusal to pay for damages caused by rain; Plaintiff also sued the company repairing the roof for improperly failing to cover roof and prevent water intrusion

Insured restaurant brought action against insurer for breach of contract and bad faith for insurer’s denial of coverage for “physical loss or damage” to restaurant caused by covid-19.

Insured dentist brought action against insurer for business interruption caused by covid-19. Insurer argued that coverage would only be for physical loss or damage, and there was none alleged or proved by dentist.

Homeowner action against insurer for breach of contract and bad faith for denial of coverage under water damage exclusion clause. Homeowner claimed the exclusion did not apply when raw sewage was diverted above a break in the municipal sewer line.

Business owner made claim for bad faith against insurer after Plaintiff’s business premises were damaged when a motorist crashed his vehicle into it. Defendant claimed that it had no responsibility to pay for improvements that were beyond the scope of the necessary repairs, which were in effect a remodel of the premises.

Plaintiff lost her home in the Woolsey fire. When she made a claim against her insurer for the cost of rebuilding the house, she discovered that she was greatly uninsured. Action was against the insurer and the broker who placed the insurance.

Permissive user was involved in collision causing total loss of car. Plaintiff owner’s claim was denied when insurer took statement under oath from permissive her and concluded that accident did not occur as described by the permissive user. Owner sued for breach of contract and bad faith.

Family of decedent in automobile accident made policy limits demand on insurer for the driver. When the demand was not met, plaintiffs obtained a judgment against the driver, agreed not to execute on the judgment against the driver, and obtained an assignment of the driver’s rights against the insurer for bad faith. In its defense on the bad faith action, insurer argued that policy limits demand was for economic loss sustained by the estate, and not wrongful death damages incurred by survivors

Plaintiffs who were in car accident were denied coverage in action for damages brought against them. Insurer denied coverage due to a material misrepresentation made in the application that they were married. Insurer claimed it would have charged a higher premium had they known the true facts. Plaintiffs claimed the insurer engaged in “post-claim underwriting”, having failed to conduct a reasonable investigation.

Plaintiff’s home was demolished in a fire and made a claim for full replacement cost. Insurer claimed it only owed a dollar amount stated in the policy, and had no obligation to pay replacement costs unless and until the home was replaced within 18 months.

Securities company was sued by client who claimed the company failed to follow her instructions. Insurer denied tender of defense by virtue of the “discretionary authority” exclusion, whereby there was no coverage for claims made arising out of the exercise of discretionary authority on the account. Company disputed that the claim included matters other than the exercise of discretion.

Psychiatric nursing and drug rehabilitation facility sustained fire damage to two buildings. Insurer accepted coverage for one building but not the other. Factual issue existed respecting the intent of the parties when policy was renewed. Owner sued for breach of contract and insurance bad faith.