KNOTTS V. ZURICH INS. CO.
TORTS: Claims settlement violations (UCSPA) can continue after suit filed
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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