JUNE 2017 BAD FAITH CASES: NO BAD FAITH WHERE REASONABLE BASIS TO DENY BENEFITS (Third Circuit, Pennsylvania law)

Print Friendly

In this case, the court determined on the facts that the insured’s life insurance policy had lapsed for non-payment. It rejected the estate’s efforts at construing relevant insurance statutes, concerning payment timing, against the carrier’s coverage position.

Addressing bad faith, the court found that the insurer’s “actions did not constitute bad faith because [it] had a reasonable basis for denying benefits.” The insured “knew of his ‘impending policy lapse’ but ‘made no premium payments to prevent this lapse, [so] [the insurer] appropriately and timely declined to pay the death benefits.’”

Date of Decision: May 18, 2017

Moll v. Pruco Life Insurance Co., 2017 U.S. App. LEXIS 8698 (3d Cir. May 18, 2017) (Greenaway, Jordan, Rendell, JJ.)

rose-2017

0 Responses to “JUNE 2017 BAD FAITH CASES: NO BAD FAITH WHERE REASONABLE BASIS TO DENY BENEFITS (Third Circuit, Pennsylvania law)”


Comments are currently closed.