Bad Faith Claim regarding Insurer Failing to Settle Claims in Good Faith

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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