The Current Status Of Bad-Faith Claims Involving Insurance In Michigan (Mondaq)

The Current Status Of Bad-Faith Claims Involving Insurance In Michigan

  Wednesday, August 18th, 2021 Source: Mondaq

The availability of causes of action under Michigan law premised on an insurer’s bad faith has generated significant confusion for several decades.

This confusion is likely due, in part, to differences in the law between state jurisdictions.

In order to fully understand the types of claims that are viable under Michigan law, it is necessary to demarcate the most common types of potential claims and track Michigan cases considering their application.

This piece will focus on the three most common categories of "bad-faith claims" and summarize whether each type of claim is viable in Michigan.

Breach of contract. First, this article will explore, and dedicate the greatest length to, the viability of claims based on an insurer’s "bad-faith breach of contract." Concisely stated, Michigan does not recognize a cause of action for bad-faith breach of contract.

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