Expanded UIM Bad Faith in PA
Court finds the UIM carrier cannot wait for the underlying case to resolve before commencing an investigation. Failure to justify and post adequate reserves even while the underlying tort action is proceeding, are further evidence of Bad Faith
Babcock & Wilcox Company v. American Nuclear Insurers Changes the game on conditional defense in Pennsylvania
If the carrier denies coverage or provides a qualified defense under a reservation of rights, they may lose the ability to control the defense and settlement. And, the carrier may be responsible to reimburse the insured for both.
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