’Questionable’ diagnoses, light job duties allow insurer to deny claim

  Monday, June 27th, 2011 Source: Risk and Insurance

A packer for an automotive parts manufacturer suffered a work-related injury to her right hand. She reported the injury three weeks later. The manufacturer immediately referred her to a doctor, who diagnosed her with a right wrist sprain and tenosynovitis. The following day, a chiropractor diagnosed her with carpal tunnel syndrome. The insurer decided to contest compensability. The packer was subsequently awarded benefits. She claimed the insurer denied her benefits in bad faith. The Texas Court of Appeals granted summary judgment to the manufacturer. The court explained that a bona fide dispute about an insurer’s liability does not rise to the level of bad faith.

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