Bad Faith: KNOTTS V. ZURICH INS. CO. (SC; 5/18/2006)

KNOTTS V. ZURICH INS. CO.
TORTS:  Claims settlement violations  (UCSPA) can continue after suit filed
2004-SC-000400-DG.pdf
PUBLISHED  2628 kb
DATE:  5/18/2006

The insurance company has a continuing duty of good faith after suit has been filed, and SCOKY held the Unfair Claims Settlement Practices Act applies to conduct that occurs both before and after litigation has commenced.  However, evidence of insurer’s litigation conduct in underlying suit cannot be used in a subsequent bad faith action.

by Michael Stevens

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