Court Allows Bad Faith Claim Against Insurer For Conflicting Coverage Positions

Insurance companies are supposed to act in good faith when handling claims made by policyholders. Unfortunately, some insurers fail to live up to this responsibility and engage in bad faith practices.

This can include denying claims without proper investigation, delaying payment, and giving conflicting information to policyholders. A recent case in the Western District of Pennsylvania highlights these issues.

The insureds, who owned a motor home, suffered damage to their vehicle.

They allege that when they initially inquired about insurance coverage for their motor home, the insurer represented that there would be coverage for the type of loss they experienced.

This is the case of MORAVIA MOTORCYCLE, INC. v. ALLSTATE INSURANCE COMPANY, in the U.S. District Court Western District of Pennsylvania.