Insurance. Bad Faith, defense, and reservation of rights. Expert testimony on damages limited to intentional or negligence infliction of emotional distress.Indiana Insurance Company v. James Demetre
2015-SC-000107-DG August 24, 2017
Demetre sued his insurer, the Indiana Insurance Company, for bad faith arising from breach of his insurance contract, violation of the Kentucky Unfair Claims Settlement Practices Act, and violation of the Kentucky Consumer Protection Act. The Court determined that Indiana Insurance Company’s decisions to defend the insured under a reservation of rights, seek declaratory judgment, and settle tort claims did not preclude a bad faith claim. Further, the Court determined as a matter of first impression that the requirement outlined in Osborne v. Keeney, 399 S.W.3d 1 (Ky. 2012) for expert medical or scientific proof is limited to claims of intentional or negligent infliction of emotional distress.
