Faricy Law Firm, P.A.
Free Consultation
Local 612-927-2590
Toll-free 800-410-5052

Appellate court rules insurance companies must re-evaluate

A recent case heard by the Eighth Circuit Court of Appeals led to the ruling that an insurance company that fails to re-evaluate a case after evidence in the case has been struck down or eliminated constitutes a bad faith action.

The specifics of the case are very technical and, as our source article notes, "fact intensive." But a quick summary of the case is this: an insurance company tried to settle a case with a claimant, but did so without re-evaluating the case after evidence in the company's favor was struck down. A lower court ruled that the insurance company couldn't challenge the jury's verdict in the case. That decision was promptly challenged by the insurance company, taking it to the Eighth Circuit Court of Appeals, which sided with the lower court.

There are a couple of things everyone can learn from this story. The first is that a re-evaluation of any insurance claim is now, by precedent, a necessary part to settling any case. It is also supposed to be part of the process whenever a policyholder submits a claim to an insurance company and new information comes to light.

But this leads to our second point, and that is that insurance companies don't always do what they are supposed to do. They don't always act in their clients best interests, even though that is exactly what the premise of their business is. Don't let insurance companies get away with their dishonest and unprofessional tactics.

Source: Claims Journal, "Failure to Re-Evaluate is Bad Faith," Steven Plitt and Jordan R. Plitt, Dec. 7, 2016

No Comments

Leave a comment
Comment Information