One form of insurance bad faith is when an insured claims its insurer failed to settle claims in good faith. As I discussed in prior articles, a bad faith claim against an insurer does not accrue until there is a determination of coverage and liability under the insurance policy at-issue. This is true with bad faith claims relating to an insurer’s failure to settle claims in good faith: “[a] cause of action for an insurer’s bad faith refusal to settle does not accrue until the insured has demonstrated a breach on the insurer’s part.” Katchmore Luhrs, LLC v. Allianz Global & Corporate Speciality, 2016 WL 733617 (S.D.Fla. 2016) (finding that insured’s bad-faith type claims predicated on Florida Statute s. 624.155 were prematurely asserted against insurer based on insurer not attempting in good faith to settle claims).
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