Bad Faith Blog

Insureds are not required to prove insurers acted in bad faith in denying a claim to be entitled to the amount of the attorneys’ fees and statutory interest under the Texas Prompt Payment of Claims Act (“TPPCA”).  Rather, insureds need only demonstrate liability under the policy and the insurer’s failure to comply with the timing requirements of the TPPCA.

Summary: New Jersey Manufacturers Insurance Company (“NJM”) appealed the ruling that it breached its duty of good faith by failing to settle a claim against its insured which was within its policy limits. The New Jersey Superior Court, Appellate Division, applied the reasonableness standard in assessing whether the claim for bad faith was proper.