Financial Services Industry
Industry: Email Alert RSS FeedCourt rules on bad faith claims.
National Underwriter Property & Casualty-Risk & Benefits Management, September, 1989 by Haggerty, Alfred G.
Court Rules On Bad Faith Claims State Farm Ready To Appeal Calif. Court Reversal The door to third-party bad-faith lawsuits against California insurers, slammed shut a year ago when the California Supreme Court overturned the Royal-Globe decision, has been opened again by at least a crack.
A California appellate court, reversing a lower court decision, ruled that Section 17200 of the state's Business and Professions Code prohibiting "unlawful, unfair or fraudulent business practice" is applicable to the insurance business. However, since Section 17200 provides only for restitution and injunctive relief, some attorneys believe that the latest decision will not lead to the thousands of bad faith suits against insurers produced by the Royal-Globe...
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