Courts remain divided over whether a policyholder, in a bad-faith action against an insurance carrier, is entitled to indemnification for punitive damages awards
Article Abstract:
The courts disagree over whether policyholders pursuing bad-faith suits against insurance companies should also be indemnified for punitive damages. Policyholders are trying a different theory to win indemnification, arguing that the defendants' refusal to settle suits in which punitive damages were awarded resulted from bad faith and that their consequent coverage should include the punitive damages. The issue has even reached federal courts, and the ultimate judicial decision will have important consequences for both plaintiffs and defendants.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Ruling could widen auditor liability; Calif. appeals court says nonclients can file suit
Article Abstract:
A California appellate court has ruled in Arthur Andersen LLP v. Quackenbush that the state insurance commissioner can sue the accounting firm for failure to discover the insolvency of Cal-American Insurance. Accounting firms warn that this ruling has greatly increased auditor liability to third parties and could discourage them from providing services to regulated industries.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1999
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Calif. court nixes comparative bad faith defense; reversing precedent, court rules against apportioning responsibility as in tort cases
Article Abstract:
A California Supreme Court ruling that "comparative bad faith" would no longer qualify as an affirmative defense in an insurance bad faith action is discussed, and came in the case of Kransco v. American Empire Surplus Lines Insurance Co.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 2001
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