Insurer’s Payment AFTER Expiration of 60-Day Cure Period from Civil Remedy Notice can Trigger Bad Faith

In order to assert a first-party bad faith claim against your insurer, you must  file a Civil Remedy Notice identifying the statutory violations.  This gives the insurer 60 days to cure the violations.  

What happens if the insurer cures the violations after the 60 days?  For example, what if the insurer pays the claim after the expiration of the 60 days?  

A recent case involving a first-party property insurance policy held that this fact can trigger a bad faith claim because the payment of the claim AFTER the 60 days supports the determination of coverage and damages under the policy.  This ruling makes it all the more important for an insurer to treat the 60 day cure period with seriousness.  Because if it cures the violations after the cure period and pays the claim without obtaining a release from the insured, even if this occurs pre-suit, the insurer can be exposed to a statutory bad faith lawsuit.  

Read this article for more information on this case and issue. 


Please contact David Adelstein at or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.


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