Bad Faith Blog
March 16, 2016
Equitably Estopped from Denying Coverage but Not Liable for Bad Faith
Summary: Insureds appealed the ruling that their insurer Automobile Club Inter-Insurance Exchange did not act in bad faith in denying their property damages claim. They argued the insurer should have accepted a late premium payment, as it had done in the past, so that the policy did not lapse. The Louisiana Court of Appeals affirmed the trial court’s ruling finding even if the insurer was equitably estopped from denying coverage it had not acted in bad faith.